Office 365 Fragmentation?

Yes, the subscription model will be very lucrative for Microsoft.  In the past customers bought office for a one-time fee and didn't upgrade for years.  That saved customers money versus the subscription model where they pay each month.  But did they really save money?

I find the subscription pricing a better value.  You get continuous updates with many great features (and new apps too).  Your monthly cost becomes a variable expense and you only pay for the users you need.  You get multiple installs per user which covers all your devices.

More importantly your infrastructure is more standardized and there are many efficiencies gained for the business through the integration of all the online services working together.  In my view, the public cloud is enabling productivity that a few years ago was unimaginable and the Microsoft services offer a great value even with subscription pricing.