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Apple gets 30 percent cut of Office 365 subscriptions if made within Office for iPad apps

Microsoft and Apple's CEOs were congratulating each other Thursday, via Twitter, on the launch of Office for iPad, and now we know why Apple's leader Tim Cook might be very happy Microsoft brought Word, Excel and PowerPoint to their tens of millions of tablets. Re/code has confirmed with Apple that they will get a 30 percent cut of any revenues generated from Office 365 subscriptions if they are made within the iPad apps.

Considering that there may be a lot of iPad owners who have yet to sign up for Office 365, that could represent not just a new revenue stream for Microsoft but also a significant boost for Apple's bottom line as well. Of course, people who already have Office 365 subscriptions, like the 3.5 million people who already signed up for the Home Premium version, won't see any of their money going to Apple.

All in all, this deal sounds like a "win-win" for both parties. Microsoft gets to see full Office apps and Office 365 expand well beyond just the Windows and Mac markets and Apple stands to make tons of money if enough people pay for Office 365 from within the iPad apps.

​Source: Re/code

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