Anyone hunting for proof that the install-and-manage software model is dying found it this week when Kurt DelBene, president of Microsoft's (MSFT +3.15%) Office division, told Computerworld that, over time, Office could be sold 100% via subscription.
That would amount to a profound shift in thinking. For years, Mr. Softy has made a good living developing and selling boxed and downloadable versions of the Office suite, with the biggest customers paying up for maintenance contracts that allowed for continual upgrades. Now the company is thinking of selling subscriptions and distributing online in a suite called Office 365.
salesforce.com (CRM +2.92%) foresaw the benefits of subscription sales more than a decade ago. The company has enjoyed heady revenue growth since, including a 36% jump over the trailing 12 months.
Would Microsoft realize similar benefits were it to adopt a pure-subscription model? Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova addresses this question and more in the video below. Please watch, and then be sure to leave a comment to let us know what you think.
