Microsoft Makes More on Cloud-Based Exchange Than Legacy Email

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.

By Jon Brodkin
Wed, August 10, 2011

Network WorldMicrosoft 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.

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That's what Microsoft (MSFT) 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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