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by kposehn
5164 days ago
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Not really - my point is that SkyDrive adds nothing to Microsoft's strategy. It won't really sell large numbers of Office, and the fact that less than 1% of people use more than 7gb (the free tier) means that it will make very little money overall. Office will certainly sell subscriptions of SkyDrive, but they'll be free subscriptions mostly and the people won't really care about it. It doesn't make the core product offering more compelling, which seems to be their core strategy based on the yearly price. Dropbox has done so well because they aren't just the first mover - they are the standard by which others are judged. With this in mind, Microsoft is making a mistake trying to make an offering to compete with it. They should have just made a deal with Dropbox in the first place. Dropbox integration would be a fantastic selling point for Office; SkyDrive integration is not. |
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I think you may be discounting businesses that actually purchase a lot of Office licences. SkyDrive can be a way of providing file-syncing and sharing that's 'good-enough' for their employees/company. (edit: by which I mean it's a valid strategy to try and protect your turf).
I can see an analogy here with Sharepoint. My (limited) experiences with Sharepoint have been annoying and tedious yet the fact that it integrates with existing MS products and is 'good-enough' has made it very successful for Microsoft [1]. I'm not trying to suggest that SkyDrive could be a $1b business but that we shouldn't write it off so quickly.
[1] http://www.businessinsider.com/microsofts-billion-dollar-bus...