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Nadella IDs Top Opportunities: Office 365 E5, CRM, BI, Security and Windows

Microsoft CEO Satya Nadella spent part of his earnings call this week explaining some of Microsoft's recent restructuring moves as a way to align the company with the biggest opportunities.

"We pushed forward in our transformation by focusing our investment in areas where we have differentiation and significant opportunity for future growth in large addressable markets," Nadella said during the call.

So what are those big opportunities? Nadella put dollar figures on four of them, totaling $115 billion.

  • E5, the new SKU of Office 365, which takes the top-selling E3 SKU and adds cloud PBX, PSTN conferencing, Delve analytics, Power BI Pro, Lockbox and advanced threat protection. "With E5, we have expanded our market opportunity for Office 365 by more than $50 billion," Nadella said, using a figure in the ballpark of what Microsoft executives told partners a week ago at the Microsoft Worldwide Partner Conference. "This new E5 SKU and the launch of Office 2016 will drive one of the biggest new businesses for us."

  • CRM. Nadella called CRM a $20-billion market with "massive opportunity for reinvention."

  • BI and analytics. "Business intelligence and analytics is another large, rapidly growing market for us with an opportunity of more than $15 billion," Nadella said.

  • Security. Calling security "a key priority for our enterprise customers," Nadella used a figure of $30 billion for that market opportunity.

One other area -- although Nadella didn't attach a specific dollar figure to the opportunity -- was Windows 10. He vowed that Windows 10 would broaden the economic opportunity for Microsoft and the PC ecosystem and return Windows to growth.

Posted by Scott Bekker on July 22, 2015 at 10:23 AM