Like Adobe, we think subscription software-as-a-service is the future. The
benefits to consumers are huge. Subscribers are always up-to-date. They get the
latest and most complete applications. They can use subscriptions across the
multitude of devices people use today. Web services like SkyDrive and
applications like Skype are also more easily integrated with subscription
services, like the new Office 365 Home Premium.
However, unlike Adobe, we think people's shift from packaged software to
subscription services will take time. Within a decade, we think everyone will
choose to subscribe because the benefits are undeniable. In the meantime, we are
committed to offering choice--premier software sold as a package and powerful
services sold as a subscription.
As proof of this point, since the launch of Office 365 Home Premium and Office
365 University in January, more than a quarter of consumers buying Office have
chosen the subscription. This exceeded our expectations, given that software
subscriptions are relatively new to most consumers. So, perhaps the shift is
happening faster than we originally thought, and Adobe is helping blaze the