Mike Austin traces how Microsoft converted on-premise products like SharePoint and Skype into cloud subscriptions. Office 365 bundled server products, then Microsoft 365 added Windows, client access licenses, and SCCM as subscription SKUs, turning perpetual licenses into recurring revenue.
Chapters
So they created a service where you moved your server products into their cloud exchange, SharePoint. And back then it was Skype when they first started out, which is now teams. And so they created this marketing bundle called Office365 and they pushed those server products in there. And then, you know, you fast forward a little bit. After the launch of O365, they had so much success driving that that they decided to move their other perpetual licenses, the stuff that remained on premise, into subscription based licensing. So they created a bundle called Microsoft 365 and they added into that their Windows Cals, their SCCM Cal. So those were the client access licenses that allowed you to access those servers. And then they added the Windows OS in as a subscription as well. And so that's why when you hear back in the day on Premise, if we talk about Windows for a second, you probably are familiar with Windows Pro and Windows Enterprise. And then all of a sudden these windows E3 show up. Windows E3 is just windows Enterprise as a subscription service.