
Revenue Stream
Analyst Michael Cherry added: "Microsoft and other cloud vendors promised the cloud would help reduce IT costs, not just in terms of on-premises hardware and software, but also in terms of IT headcount. It now seems that the cloud is the cause of significant new costs."
And therein lies the rub. In the good old days, Microsoft got its revenue stream with a new release of Windows (both server and client) every few years followed by a new release of Office. With the cloud, that made way for the subscription model.
But, if you provide a stable, unchanging platform that suits your customers, the revenue stream levels off, which doesn't suit your shareholders. Each new addition to M365 is simply the equivalent of an "upgrade" which makes your shareholders happy, sure, but what about the customer whose "simple to manage" estate is ever more complicated to manage, licence and afford?