Microsoft and Dropbox have put the gloves down, and instead of continuing to compete, are focusing on working together. The two company’s came to terms on an agreement that would allow the two companies to work together in cloud space computing, and bring a better experience to customers from start to finish.

The changes will allow customers who use Dropbox to house their Microsoft Office documents to edit those documents right within the Dropbox app, instead of having that capability limited to OneDrive users. That being said, many have argued that this will cut into Microsoft’s bottom line, but the truth is that this is something that is in desperate need, when it comes to more compatibility, and a greater reach.

This move will improve Microsoft’s reach, and it will bring ease of access to Dropbox users, but it will come at a price. At least to start, Microsoft will require Dropbox users to be subscribers of their Office 365 service, which is the month-to-month equivalent of Microsoft Office. The company has been making a steady move over the last several months to coax users over to the month-to-month service, and some have even suggested that this was where the industry was headed – as opposed to software releases and updates, through the traditional methods.

Edit Office files from Dropbox app

It’s unclear how this will impact OneDrive, Microsoft cloud storage service, but as they recently began offering unlimited storage to those individuals that were subscribed to Office 365 – the company is focused on driving, and extending the reach of that very subscription service.

Dropbox has said that they have more than 35 billion Office documents, and files, floating around their service, and that this compatibility will simply expand their reach, and give their users a better experience.

First, the new service will roll out onto Android and iOS devices, and then in 2015 work their way to becoming a web-based service. It’s become clear though that for two companies who, at one time, did not work together much at all – are now working wholeheartedly together to drive both services and companies.

Kirk Koenigsbauer, the corporate vice president of Microsoft Office 365 Client Applications called the move “An important extension into the mobile space,” and that “Today Office and Dropbox work really well together on the desktop but people have multiple device and need to have access to productivity tools everywhere.” The companies view this as an opportunity to continue synchronizing, and bringing their customer bases together.