As of now, Microsoft has 1.2bn Office users worldwide which is split between commercial, consumer and academic users. Microsoft intends to capture the next billion by looking outside of their typical customer base and expanding into new areas, such as:
Desk-less Workers ? such as plant or factory workers.
Emerging Markets ? where users are often mobile first and mobile only. Here they would have to think about how Office behaves on lower bandwidth.
Messaging ? this will likely be a requirement, especially in emerging markets.
Focusing more on SMBs and Education.
We estimate Microsoft added 15-20mn Commercial users annually in FY14 and FY15. We then assume Microsoft continues to add 20mn annually going forward. We estimate Microsoft user additions accelerate, adding 12mn Home / Student users in FY16 and 14mn in FY17.
