Microsoft Brings Office Suite to iPad- Apple= Big Winner

Look, let's be frank. The price of software is falling for two reasons.

1. The operational base which one has to build makes it far easier to build and create.
2. With the global reach and distribution ease the internet offers (no more CD installation baby) the associated production costs and barriers to new software have been diminished or vaporized.

With Google making money on the back end (from data mining, advertising) they are giving away software for free. Apple makes money on the hardware, and is now giving away it's productivity suite, iWorks to Apple users.

WHY in the world will people then continue to shell out a ton of money to Microsoft in the future for Windows/ Office, which account for 90% of the operating profits that Microsoft generates?

Facing such pressures, Mr. Softy has already cut prices on Windows licenses on low priced machines ($250 or less) ... as well as dropping Windows Mobile licenses to FREE (not that there was much demand for them to begin with) and are now theoretically able to compete with Android, which is, yes indeed FREE.

Former CEO Steve Ballmer balked at releasing Office for the iPad, wanting to give Mr. Softy's own Surface tablet a competitive advantage. Today, with the release of Office for the iPad, the Surface is now relegated to commodity status. They've thrown away the one competitive advantage they had in hopes of keeping Office relevant.

For Apple, they generate 30% of any sales of Office from their app store, as well as making the iPad more appealing to the business community. Apple derives all this extra ultra-high margin revenue for doing NOTHING but approving Office for the iPad. Talk about a BIG WIN!




Microsoft might get a few more subscriptions for Office this way, and lengthen it's life for consumers/ businesses, but as I continually state, Micrsoft profit centers are under attack. Better sell shares at these highs!


Comments

Popular posts from this blog

"Big Data" - Who Makes Money off it + How does it Affect YOU?

Big Data is Electric - Who Is Set to Win the Data + Cloud Wars

Is Data Really the "New Oil?" (Hint: NO- here's why ...)