Office 365 Hits 100 Million Monthly Active Users


Microsoft said yesterday that Office 365 now has 100 million monthly active users. At this rate, we will be close to 120 million by the end of 2017. But the really interesting question to ask is just how many on-premises users remain that might move to the cloud...

4 Replies

@Tony Redmond Thanks for keeping us updated all the time about O365.

No worries. I have to do this anyway to keep the Office 365 for IT Pros eBook updated (chapter 1 in this case), so it makes sense to share the information as appropriate in different ways...

Hi Tony,


Thanks for sharing this post.


I wonder what their profit margins are.. "100 Million" users means massive infrastructure and operating expenses. The stock is up $18 from last year this time, but I wonder how much of that is contributed to Office 365. 


Either way kudos to them for creating and managing a Service which supports 100 Million Users. That's a lot of moving pieces! 


BTW - I've downloaded your book "Office 365 for IT Pros" the first day it was released. Hopefully you guys are working on some audio content or continuing your podcasts. It would be helpful for commutes. 

I don't think I would like to speculate on returns. However, CFO Amy Hood said yesterday that:


"Another strong quarter of cloud services performance drove our commercial cloud revenue run rate over $15.2 billion, growing 52 percent. Our commercial cloud gross margin percentage increased to 51 percent, up 6 points from last year, with improvement across Office 365, Azure, and Dynamics 365. And gross margin dollars grew 74 percent, keeping us on pace for material gross margin percentage and dollar improvement this fiscal year. As a reminder, our commercial cloud includes Office 365, Azure, Dynamics 365 and other cloud properties, but does not include LinkedIn."


There is no doubt that Microsoft has had to spend heavily on datacenters and the surrounding infrastructure plus engineering to make Office 365 a reality. Quite when they achieve the kind of returns they would like is another matter. In any case, this is a long-term gain.


As to podcasts, I have done some with Paul Robichaux and will maybe do some more. It just takes time... And there is a book to be updated!