Is Microsoft about to kill DocuSign?

Microsoft (after months of testing) is launching native eSignature support in Microsoft Word. How does this compete and compare to wider known tools such as Adobe Sign. Where where does Microsoft eSignature support fit and who is it for?

Why? To streamline document approvals without leaving your document and without needing to pay for expensive/third party eSignature tools.

eSignature Support in Word

Microsoft Word has quietly gained a feature that is aimed to save multiple email chains, PDF exports, and “please print, sign, scan, and send back” headaches. The new eSignature capability lets you send, receive, and track legally binding signatures directly inside Word – with no third-party apps required.

Why This Matters

For years, Word has been the place where contracts, agreements, and proposals are written – but not where they’re finalised for commercial use. That final step often meant exporting to PDF, uploading to a signing platform such as Adobe Sign or DocuSign, and then re-downloading for storage. Now, that friction is gone.

With eSignature in Word, organisations can:

• Request signatures from within the open document straight from Word or SharePoint.
• Track progress without leaving Word.
• Store signed copies securely in OneDrive or SharePoint.

How to use eSignature in Word

How It Works is simple:

1. Users prepare, Co author their document as normal in Microsoft Word.
2. Insert signature fields where needed via the new eSignature menu*
3. Send the document for signing — recipients get a secure link to review and sign the document.
4. Track status in real time, again, right from within Microsoft Word.
5. Receive the signed copy automatically saved back to your chosen location.

Note: to use eSignature in Word, a few steps are required by admins, including enabling the feature in the Microsoft 365 Admin Centre, and creating a policy for use in Intune or Office Config Centre. See more below.

eSignature Security and Compliance

Microsoft’s eSignature service is built on the same compliance and security framework as the rest of Microsoft 365, including:

• Encryption in transit and at rest.
• Audit trails for every signature request.
• Integration with Microsoft Purview for governance and retention.

eSignature Workflow Support

One of the things third party eSignature  tools do well is workload integration into LOB.

Since eSignature is native to Word and Microsoft 365, Microsoft have their own native workflow support which includes:

• Ability to trigger signature requests from Teams chats or Outlook emails.
• Signed documents inherit your organisations existing retention and sensitivity labels.
• Approvals can be part of a Power Automate flow for end-to-end process automation.
• These Power Automate flows can integrate (and may already be) part of your business workflow.

Is this the end of Docusign?

I do t think so….. While Microsoft’s move might feel like the big boys taking a shot across the bow, at DocuSign, I don’t beleive this is really designed to compete (not head on anyway). In fact, just last week, DocuSign Q2 results shows it’s doubling down on its core strengths.

1. DocuSign’s Q2 FY2026 results beat expectations, with revenue up 13% YoY to $801M.
2. Their new Intelligent Agreement Management (IAM) platform now has over 10,000 customers, positioning DocuSign beyond “just” e-signatures, into full contract lifecycle and workflow automation — a space where Microsoft is still building capabilities.
3. Developer and ecosystem push is strong as
   with deep integrations, AI-powered agreement workflows, and orchestration tools like Maestro built in. This is aimed squarely at enterprise developers who need more than just a signature – they want embedded, automated, and compliant agreement processes.
4. DocuSign leads the way in multi-party signing, and signature authentication. Microsoft Word’s eSignature is convenient for those already in the 365 ecosystem and that don’t have a eSignature system today as well as those that just need relatively simple capabilities.

Will Microsoft eSignature kill off DocuSign?

I don’t think so…

For the time being, DocuSign will likely remain the go-to for regulated industries, complex workflows, and organisations that need platform-agnostic signing.

For organisations that don’t have this feature today, or use a third party tools without the need for complex integrated workflows, then this could be a viable and cosy effective solution built right into their existing flow of work.

For larger, more regulated organisations however, that already have investment, process and LOB integration with a third party eSignature tool, then this is likely not going to of immediate interest. This is due to the rich number of additional features tools like DocuSign and Adobe Sign bring including contract lifecycle management, and eSignature portals that bring more than just e-signing are in use.

The real story isn’t “Microsoft kills DocuSign”  it’s that the e-signature market is maturing. Microsoft’s entry will likely capture casual and internal signing needs, while DocuSign focuses on high-value, compliance-heavy, multi-party agreements. In other words: the pie is growing, and both players are carving out their slices.

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Further info:

Microsoft Video: https://youtu.be/1S8HDKYPIA4

DocuSign: https://www.docusign.com/en-gb

Microsoft eSig: https://techcommunity.microsoft.com/blog/spblog/announcing-sharepoint-esignature-for-microsoft-word/4419681