When Microsoft 365 debuted in the summer of 2017, many had doubts over the need for the service. After-all, the features and products bundled into the Microsoft 365 subscription are all available individually. However, the concept was successful, resulting in Microsoft making it an integrated product in 2018.
Both the decision to create Microsoft 365 and make it a standalone product have paid off. The proof continues to be in the pudding. During Microsoft’s fiscal 2020 (which ended last week), it seems Microsoft 365 was a standout performer.
During its Q4 2020 earning call, the company wrapped up its financial 2020. Over the last quarter, Microsoft took $38 billion in revenue. Yes, it was another bumper performance from Microsoft as it continues to thrive and grow.
For the company’s Productivity and Business Process division, Microsoft says there was over $50 billion in annual revenue. Microsoft 365 is part of the division but is included alongside other products. That makes it tougher to understand how individual services performed.
According to a report from ZDNet, Microsoft 365 took $20 billion revenue during 2020. In total, Microsoft had $143 billion annual revenue, so Microsoft 365 has become a major contributor to Redmond’s overall financial performance. The report says the information came directly from Microsoft CFO Amy Hood.
Last year, the bundle took a reported $13.2 billion in revenue. This means a near 50% increase in revenue happened during 2020. It seems the top-tier E5 version is driving this increase, doubling its revenue year-on-year to $7.5 billion. This suggests more major organizations are adopting Microsoft 365.
If you’re unfamiliar with Microsoft 365, it is a Windows + Office + security bundle for business. It boasts products like Windows 10, Office 365, Enterprise Mobility + Security, and more. Considering the ongoing success of the product, it seems like Microsoft can expect further gains during its 2021.
Certainly, the launch of Microsoft 365 Personal and Microsoft 365 Family point to the potential for a revenue increase through this year.