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Chronicles

The story behind the story

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Microsoft says it's shipped Surface Hubs to 2K+ customers since March with an average deal size of 50 units; product is now in stock

Microsoft officials say they've sold Surface Hub conferencing systems to more than 2,000 customers since March, and that they've now got their supply situation under control.

ZDNet Mary Jo Foley

Context & Ripple Effects

The Surface Hub's first year has been a supply story. After Microsoft expanded its Surface sales channel from hundreds to thousands of partners and delayed the launch, the device finally started shipping in late March, and by July demand had outrun production — over 500 customers served against forecasts Microsoft said it had exceeded, on hardware priced up to $22K per unit.

December's update closes that loop: shipments have quadrupled-plus to more than 2,000 customers, the average deal runs 50 units, and Microsoft says stock is available again. The headline number matters less than the deal shape — this is bulk room-fitting procurement, not single-device sales.

First-order effects

  • Microsoft's channel partners, expanded in 2015 precisely to sell this category, can now quote reliable delivery on a product that spent mid-2016 backlogged — removing the biggest objection in active enterprise deals.
  • With 50-unit average orders, each customer commitment represents a multi-room deployment, pulling installation, mounting, and services revenue along with the hardware sale.

Second-order effects

  • Rivals in conference-room collaboration displays face a competitor that has proven both enterprise demand at a premium price point and the manufacturing ramp to serve it, pressuring them to match on bundle pricing or room-scale packages rather than unit specs.
  • Suppliers of large-format touch displays and the AV integration channel gain a repeatable volume customer in Microsoft, shifting their mix toward recurring corporate deployments.

Third-order effects

  • If the pattern holds, the meeting room becomes a standardized enterprise procurement line — large-format collaborative displays bought by the fleet through partner channels — a trajectory the later Surface Hub 2S refresh confirms by treating the original as a platform due for iteration rather than an experiment.

The trend: Premium collaboration hardware is shifting from pilot-purchase novelty to bulk enterprise procurement, with supply-chain execution — not demand — setting the adoption pace.