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Will Satya Nadella Launch an Office for iPad?
Will Satya Nadella Launch an Office for iPad?
By Jennifer LeClaire / NewsFactor Network Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
MARCH
18
2014

Microsoft may be ready to cave to the consumer pressure -- and reap the financial rewards -- of bringing its Office productivity suite to the iPad. New CEO Satya Nadella could unveil the iPad version at a press event March 27, according to Reuters News Service.

It would be a big move for Nadella, who replaced Steve Ballmer to become Microsoft's third-ever CEO earlier this year. He is set to address industry execs at a San Francisco event later this month.

Microsoft could not immediately be reached for comment, but we caught up with Wes Miller, an analyst at Directions on Microsoft, to get his take on the rumors. He told us right now the iPad version of Office is that -- a rumor. But he's not ruling it out.

A No-Brainer for Nadella

"The reality is that Office for the iPad is sort of a no-brainer in that they need something on that platform for customers who want to edit Office documents on the iPad," Miller said. "This will give them that answer."

Miller, for one, has been suspecting for a long while that the market would witness a range of updates to Office 365 during Microsoft's third quarter and early into the fourth. So far, he's been right. Microsoft recently unveiled the Office 365 Personal Edition.

"We likely see this Office for iPad app tied back to Office 365 subscriptions. In other words, the app itself may well be free but there probably will be requirements for a 365 subscription," Miller said. "This would reflect what we saw with them announcing a Personal Edition the other day and the hints that an app would be coming."

A Billion-Dollar Opportunity?

At least one financial analyst has supposed Microsoft could be leaving billions of dollars on the table by neglecting the iPad.

Indeed, according to Adam Holt, an analyst at Morgan Stanley, Microsoft could be missing a $2.5 billion opportunity in choosing not to offer Office on the mobile platform. Although Microsoft makes its CRM software available for the iPad, Apple users are left in the cold when it comes to other Microsoft productivity apps.

"While MSFT has resisted offering a full version of Office for the iOS, the company may ultimately decide there is more upside with Office on iPads, particularly if Win tablets fall short of expectations," Holt wrote in a research note. "The Surface RT likely sold only 900K-1M units in CQ4, while OEMs have pulled back on tablet builds and it may be difficult for MSFT to reach much more than 10% tablet share in CY13." (continued...)

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