MS makes more on cloud-based Exchange than legacy email

Per-user income greater in cloud, or so Microsoft claims

Microsoft claims it earns more money per user from cloud-based Exchange email accounts than it does selling the legacy version of Exchange Server most businesses deploy today.

That's what Microsoft investor relations GM Bill Koefoed said at the Oppenheimer Annual Technology, Media & Telecommunications Conference Tuesday, according to a transcript on Microsoft's website. Customers who purchase Exchange as part of the Office 365 cloud service pay roughly $10 per month, less than they would in the back-end costs of running their own Exchange servers, but nearly all of it goes directly to Microsoft, he said.

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This story, "MS makes more on cloud-based Exchange than legacy email" was originally published by Network World.

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