That was fast. Only on 4th November we wrote that Dropbox had partnered with Microsoft.
Today Microsoft updated its Office for iOS apps with Dropbox integration. What is surprising, is the fact that Microsoft made Office for iOS free for the majority of users (i.e. people who doesn’t need some ).
Office for iPad, launched this past March required an Office 365 subscription in order to edit files. Office for iPhone, on the other hand was free and allowed creating documents too. Today’s move represents a strategy change for Microsoft, the second in eight months.
I cannot disagree with Six Colors, when it says that this appears like a desperation move:
Because Microsoft’s shifted from a strategy of “if you want to use our apps, you have to pay for a subscription” to “okay, you can use most of the common features for free, but we hope you’ll upgrade for fancier features.” Clearly, Redmond’s hoping that first, free taste will be enough to get you hooked. Then again, if Microsoft’s subscription strategy was succeeding, it wouldn’t be making this change.
The point is that all companies these days fight for customer retention. Whereas Apple has superb hardware and an allure of affordable luxury, and Google can offer exceptional web services, Microsoft has got just nothing.
No private customer has any incentive to live in the Microsoft ecosystem. Efforts like OneDrive and Office for iOS seem too little, too late.