Microsoft Office for iOS will be launched next year in the App Store, but in the meantime the suite of applications generate a dispute between Apple and Microsoft. Yesterday, the first information appeared about a misunderstanding regarding the cloud computing service called SkyDrive, Apple wanting to receive 30% of the subscriptions that are concluded through the application. Apple would have refused to approve an update for the SkyDrive application because of Microsoft's reluctance to give it that 30% percentage, but in reality it would be about the Office suite for iOS.
Office has long been a cash cow for Microsoft and extending the platform to iOS will undoubtedly fatten it further. It will also bring significant benefits to Apple's mobile platform, ones for which Microsoft feels it is owed a discount on that 30 percent cut that Apple would otherwise command on Office 365 subscriptions sold to iOS users through it. The apps are just part of a subscription that includes desktop access. So the company has been pushing Apple to adjust the 70/30 revenue split in its developer license agreement. Predictably, Apple has refused to comply. It's not yet clear what sort of concession Microsoft is seeking, but whatever it is, Apple's obviously not willing to consider it. Indeed, I'm told it's taken a "the rules are the rules" stance, which would suggest it's not at all willing to negotiate a different split. Apple's position: If a customer comes through its gateway, it feels it deserves the commission outlined in 11.12 of its developer license.
For the Office suite, Microsoft sells a subscription called Office 365, which attracts a lot of users and cash-in, and Apple tries to profit from them. Microsoft tried to obtain a reduction in the commission charged by Apple, but the company from Cupertino refused saying that the rules for the App Store apply equally to all developers, and that it will not think of making a concession for Microsoft. Considering that the Office suite for iOS should only arrive in the App Store in March, there is little chance that the dispute will affect users, the two companies probably reaching a common point in the meantime.
