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With Office365 Microsoft accomplished something impossible from a product management perspective

Autorenbild: Philipp HoffmannPhilipp Hoffmann

⚡ With Office365 Microsoft accomplished something impossible from a product management perspective:



it made many users pay for the products multiple times.



I alone pay for maybe 3 instances of Office365.



Using Office as a subscription already increases my customer lifetime value (CLTV) to insane heights.



But paying for 3 instances triples my already CLTV again.



How does that work?



By not letting each user pay for itself. Instead companies pay for the service where providing IT, licenses and office packages is already budgeted in and getting it "as a service" is cheaper than building and maintaining all the infrastructure yourself.



What a business model.






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