Office-iPad-PP-03

When Microsoft announced its Office for iPad apps earlier today, it confirmed that the software will require a subscription to Microsoft’s $99/year Office 365 service for most functions. If you don’t have one already, you can get a subscription directly through the Office apps for the regular price of $99.

As you may recall, Apple and Microsoft went toe-to-toe last April on the issue of whether or not Apple should get a 30% cut for SkyDrive storage space purchased through the SkyDrive app. Apple has always maintained the position that any goods or services sold through iOS apps should use the in-app purchase system created by Apple—allowing the Cupertino company to take its regular 30% cut of the price.

In the case of the SkyDrive dispute, Apple’s decision remained unchanged, which prompted Microsoft to simply remove the option to purchase additional storage space through the SkyDrive app altogether. In the case of today’s Office launch, however, the two companies seem to be on much better terms.

Apple has confirmed to Re/code that the company is taking its full 30% share of all Office 365 purchases made through the iPad software. This apparent agreement, along with friendly tweets between the CEOs of both companies, could be the first signs of a much less combative Microsoft under the leadership of new CEO Satya Nadella, who replaced Steve Ballmer in the role this year.

Perhaps in the future we’ll see even more collaboration between the two companies.

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11 Responses to “Yes, Apple is taking 30% of every Office 365 subscription purchased through Office for iPad”

  1. antrikshy says:

    Well, duh. Policy is policy.

  2. rogifan says:

    I wish Apple and Microsoft would collaborate more together. Someone needs to keep Google in check. I find it interesting that there was no Office for Android announced today,

  3. juancastim135 says:

    No wonder the friendly tweet from Cook lol

  4. Do somebody remember MacWorld/Boston 19997?

    During his speech, Steve said that we have to forget that to Apple to win, Microsoft has to loose.
    In the same event, he announced a $130M inversion of MS in Apple, the promise to continuing development of Office for Mac, and Apple including the Internet Explorer as its default browser.
    This gave Steve&Apple time to invigorate the product line and become what Apple is now.

    Today, we saw a clear change in the position of the two companies.
    And MS is having to pay back by giving the 30% for in-app purchases.

    What I do not see is the see is the ‘second coming of MS.’ They’ll just survive.

  5. Laughing_Boy48 says:

    Sweet. Apple says to Microsoft, “Show me the money.” Microsoft is desperate to move Office for iPad and Apple is licking its chops at a 30% nibble. That’s the way payback should be. It doesn’t barely begin to make up for all those years Microsoft held fast to the Enterprise and didn’t let Apple get any play. I’m not hoping Microsoft gets ruined or anything. I merely want to see Apple get a fair shot at some corporate deals.

  6. fredhstein says:

    Great news for both. The big threat to MSFT is Google Drive, which is free and for many purposes “good enough”. If MSFT let ‘good enough’ become the default, they become marginalize. Within a year Tablets will cross PCs in shipments. For Apple, revenue and relevance for zero investments. How sweet.

  7. miked2775 says:

    30% of zero is still zero

  8. Brad Burke says:

    As it should be. After all this is business folks.