The Real News Behind Microsoft's Recent Announcement

This week Microsoft (NASDAQ: MSFT  ) made a couple of huge announcements, the first of which was that the company now offers the Office suite of apps for Apple's (NASDAQ: AAPL  ) iPad. That news garnered a lot of well-deserved attention -- after all, Office is one of the most widely used tools for enterprise users, and the iPad is the enterprise tablet of choice.

The long-awaited pairing of Office and iPad will likely be a great thing for both companies. Microsoft will sell more Office 365 subscriptions because of it and hold onto its enterprise software dominance just a little tighter. Meanwhile, subscriptions purchased through Apple's App Store, as opposed to directly through Microsoft, allow Apple to skim 30% off the top of Office 365 pricing.

While all of this is certainly good news for investors of both tech companies, the Microsoft investors should be more focused on Microsoft's announcement of the company's Enterprise Mobile Suite, or EMS.


Source: Microsoft

Diving deeper into the enterprise cloud
So, what is EMS? The company's new CEO Satya Nadella calls it "the most strategic piece of the infrastructure development we're doing in support of enterprises." The suite of products essentially brings together several of Microsoft's previous enterprise offerings, with a few new ones, and packages them together in a comprehensive device and user-management system across Windows, iOS, and Android platforms. 

EMS combines the company's Azure Active Directory Premium service, Windows Intune, and Azure AD Rights Management Services to allow IT professionals to manage user identity and access, protect data, control mobile app access, and manage bring your own devices (BYOD) in the workplace.

In short, it's Microsoft's way of securing its mobile future in the enterprise sector.

Why all of this matters to Microsoft investors
Enterprise Mobility Suite offers is an integral part of the Microsoft's cloud and mobile ambitions going forward. Up until now, the company focused more on its Windows customers, but this latest move shows Microsoft knows that true mobile integration means creating services for Apple's products and the Android platform.

Being open to offering services on platforms other than Windows allows the company to further expand its reach with products like OneDrvie, Azure, and Office 365. And that could have huge payoffs in the BYOD world. When it comes to Office 365 subscriptions, Microsoft says it's the company's "fastest-growing commercial product ever." Now that Enterprise Mobility Suite has launched, the combination of this package plus Office 365 could bring on-going revenue streams for Microsoft. 

The company's software is already the preferred choice for many IT professionals, and offering a suite of mobile and security applications that integrate with current systems and any mobile platform make it that much easier for EMS to take off. This really is a huge step in the bring your own device direction for the company, and it's an important factor in continuing the long marriage between enterprise businesses and Microsoft.

The biggest thing to come out of Silicon Valley in years
If you thought the iPod, the iPhone, and the iPad were amazing, just wait until you see this. One hundred of Apple's top engineers are busy building one in a secret lab. And an ABI Research report predicts 485 million of them could be sold over the next decade. But you can invest in it right now... for just a fraction of the price of AAPL stock. Click here to get the full story in this eye-opening new report.


Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 30, 2014, at 1:00 PM, techy46 wrote:

    Great article. Microsoft's an enterprise ecosystem provider first and foremost and scales results down to consumer version secondly. MS can offer EMS at the consumer level allowing homes to manage all their devices. Nobody including Apple and Google can offer an enterprise ecosystem that matches Microsoft's.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2894883, ~/Articles/ArticleHandler.aspx, 9/30/2014 2:37:30 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement