Microsoft Fighting With Apple Over iOS Profit Sharing For Office 365
Microsoft Office 365 will soon release for Apple iOS based devices, and Microsoft is fighting hard to reduce Apple’s typical 30 percent revenue share for iOS app downloads.
According to a recent report at AllThingsD, Microsoft doesn’t want to hand over 30 percent for subscriptions to the service, a fee that Apple would collect indefinitely. Apple unfortunately is not willing to budge on its pricing and has refused negotiations according to a source close to the situation.
While increased competition from the likes of Google has caused Microsoft to quickly adapt to a changing environment, Office is still the dominant tool of choice for most end-users and businesses and the biggest cash cow for the Redmond, Washington based company.
Microsoft’s biggest gripe appears to be in regards to how Apple would charge customers. Buyers through iOS would also gain access to Microsoft Office desktop and cloud platforms. There is the possibility that a user could stop using an iOS device but continue their subscription through Apple. Essentially, Microsoft would pay a yearly commission to Apple despite the fact that Apple is no longer supporting Office 365 for Microsoft users.
Giving up what could be a huge part of its revenue growth could lead Microsoft to delay the release of an iOS option or perhaps side table the application all together. Apple, on the other hand, could lose a huge opportunity by refusing to work alongside Microsoft through a reduced revenue model. The biggest trend in business right now is known as “bring-your-own device,” and it refers to the ability for users to choose which devices they want to use on their company’s secured network. Should Apple refuse to work alongside Microsoft, more users could turn towards the Office 365 friendly Google Android OS.