Microsoft has announced the first major service update for Microsoft Office 365, the company’s next-generation cloud productivity service for businesses of all sizes.

The company has released the service in 22 additional markets, including Argentina, Iceland, Indonesia, South Africa and Taiwan.

Microsoft Office Division president Kurt DelBene said customers are adopting Office 365 eight times faster than the company’s previous service, and the solution is on track to become one of the company’s fastest-growing offers in Microsoft history.

"We are also seeing great traction with small businesses, with more than 90% of our early Office 365 customers coming from small businesses," DelBene said.

Meanwhile, Microsoft is also making more than 30 new updates to Office 365 to enhance collaboration and communication, and for SkyDrive, adding simple app-centric sharing for Office, powerful file management and easier uploads with HTML5 based largely on customer feedback.

The new updates include support for Lync for Mac; new SharePoint Business Connectivity Services; and support for Windows Phone 7.5.

SkyDrive gets simpler app-centric sharing for Office, powerful file management and easier uploads with HTML5.

The new updates will allow users to share any Office document in one click, manage and organise files quickly, and drag and drop multiple files to upload across browsers on PC and Mac.

Microsoft Office Division corporate vice president Takeshi Numoto said today’s news illustrates how they’re executing like never before in the cloud with more customers, capabilities and commitment than anyone in the industry.