Office 365 Now Controls 25% Market Share

Cut-throat competition with Google continues

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Office 365 has overtaken Google Apps in the business market by more than tripling its share in one year, according to a new report from cloud security firm Bitglass. The report shows that Microsoft has stormed ahead to take control of 25.2 percent of the enterprise market, up from 7.7 percent last year.

In 2014, Google held more than double the business market share of Microsoft, with 16.3 percent. Though its share has grown to 22.8 percent, the tables have turned and Google now finds itself as the underdog in cloud enterprise apps.

Microsoft in its Q4 earnings call mentioned that Office 365 is now in use in four out of five Fortune 500 companies. The service has 15 million subscribers, with a million more signing up every month. The key ingredient that has pushed Office 365 adoption in the enterprise has been Microsoft’s push for companies to move their email to the cloud. Simply speaking Microsoft has been telling its customers to move their email to Microsoft’s cloud instead of buying another Exchange server and hosting email in their own data centers,

Up until last October, in the USA Google Apps was more popular, and Salesforce and Box were the most popular apps used at work. “Office 365 has surged ahead of Google in the enterprise and is dominating future enterprise deployment plans (29%) versus Google Apps (13%),” notes a spokesperson from  Bitglass.

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To be sure, Office 365 is not taking market share away from Google Apps, but from old-school email software, mostly Microsoft Exchange. A US-based think-tank recently completed a large scale survey on cloud adoption, using cloud-based analysis of traffic data to survey over 120,000 organizations. The data also found that companies using a cloud application as their productivity suite jumped from 28 percent last year to 48 percent. Not only has there been a jump in users over the past year, but Microsoft has capitalized on the growth and marched into the lead.

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