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Microsoft (News - Alert) and Apple are ramming heads, mostly due to Apple’s policy of taking a 30 percent cut of in-app purchases from Office 365 provider Microsoft’s apps. It was disclosed that an ongoing conflict between Apple (News - Alert) and Microsoft is hindering updates to the latter's SkyDrive iOS app.

But, newer information reveals that while a SkyDrive update was rejected by Apple, the real profit dispute between the two is with the upcoming Microsoft Office suite for iOS to be released in 2013, including Office 365.

Microsoft feels that it should in no way cough up 30 percent of its portions from Office 365 sales to Apple because subscriptions can also be purchased on non-iOS devices.

According to AllThingsD who broke the news, “Apple has indeed rejected — not merely delayed — an update to Microsoft’s SkyDrive app for iOS following a disagreement over whether it is owed the 30 percent cut of in-app purchases it typically demands. But the spat over SkyDrive is just one small part of the larger argument between the two companies.”

The Next Web revealed that the main concern for Microsoft with the 30 percent policy is that many users would continue with the service for a couple of years and Apple would still get its cut irrespective of which device the user is using at that time.

Word on the street is that if Apple and Microsoft can’t come to terms over this spat, Microsoft’s only next move would be to eliminate the sign up option before Office goes live in Apple’s App Store.

Despite this quarrel between the two computer giants, Office 365 is still doing quite well in the virtual marketplace.

A recent report from Forrester (News - Alert) says that Office 365 is an important tool for companies, leading to its expansion in the cloud strategies space.

“Customers are choosing Microsoft productivity solutions because they deliver a more complete experience and greater flexibility to move to the cloud on the customer’s terms,” said Eddie O’Brien, vice president, Operator Channels, Microsoft.

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