![]() ![]() Historically, Microsoft focused on the total dollar amount at renewal time, and the underlying product mix was not particularly important from a discounting and deal negotiation perspective. It also underscores one of Microsoft’s top priorities, which is to make its cloud offerings more profitable – a mission that’s affecting the trajectory of renewal negotiations for some customers. ![]() While Microsoft continues to experience growing pains as it tries to replicate this cloud success in other areas of its business (layoffs and restructuring is one example), it does signal that Microsoft’s bet on cloud is paying off. For the first time, the vendor’s Office 365 online workplace tools brought in more revenue than its on-premise version of Office. Microsoft hit a major milestone in July 2017. (This post was updated on October 24, 2017) ![]()
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