Coffeehouse Thread

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Office Subscriptions (price!)

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  • ManipUni

    So Microsoft's latest effort is to try and turn Office into a subscription model. But I think they have seriously miscalculated in terms of the price they're charging.    

    You can buy, for £89, a physical copy of Office 2010 Home for up to 3x users. They're trying to sell Office 365 for £79.99/year for up to 5x users.    

    Now you might say that the Skype credit and SkyDrive bits are worth a lot. They are worth something but some quick maths suggests the Skype stuff is worth approx £18/year at Skype's current rates. 

    The SkyDrive space is worth £6/year for the additional 20 GB. Keep in mind that you only get 20 GB once, not 20 GB each year, so you're paying to maintain that additional storage, not to buy more...    

    So: 
     - Skype: 18
     - SkyDrive: 6  
     - Therefore: You're paying £55.99/year just for Office.    

    I'd prefer to pay £89 for the physical boxed copy of Office 2010. I only buy Office once every eight years anyway, plus there is no assurance that Office 365 even gives you the newer versions of Office when they come out in the future (i.e. there might be an "upgrade fee").    

     

  • Bas

    Way too much for consumers. If they offered a version with 2 licenses for, I don't know, $40 a year, I think they'd bite. This? Not likely.

  • Dr Herbie

    @ManipUni: I don't think the pricing is really geared for Home users, I think it's aimed at corporate entities who would be prepared to pay a little more for an on-line product to reduce their IT infrastructure and make savings there.

    Herbie

  • ManipUni

    @Dr Herbie: Businesses cannot legally buy the Office 365 Home product mentioned above. It has a "no commercial use" licence. See here. So I am contrasting Office 2010 Home with Office 365 Home.    

    The business subscriptions haven't been completely released yet. They seem to exist as they're referred to all over the place, but if you actually look at the business offerings they don't yet include Office (software) in them.   

  • Blue Ink

    , ManipUni wrote

    * snip *

    I'd prefer to pay £89 for the physical boxed copy of Office 2010. I only buy Office once every eight years anyway, plus there is no assurance that Office 365 even gives you the newer versions of Office when they come out in the future (i.e. there might be an "upgrade fee").  

    Looking at the Microsoft Store, it says "Ongoing access to updates", which seems to suggest that you just keep getting the latest and greatest.

    The pricing looks rather different when you compare current versions: the cheapest I can find on the MS Store is Office Home and Student 2013, which installs on just 1 PC, lacks quite a few features and goes for GBP 109.99. Hmm...

  • Dr Herbie

    @ManipUni: Ah, I see -- I could only find the 'Small Business' and 'Enterprise' versions -- I didn't realise there was a Home version too.

    Herbie

  • wkempf

    @Blue Ink: That's what I was thinking. In terms of USD, it's $139 for Office Home, legal to use on 1 PC and containing Word, Excel, PowerPoint and OneNote. In contrast, $99/per year gets you all of those plus Outlook, Publisher and Access for use on up to 5 PCs. I can see reasons for going both ways on that decision. I think for most people a full purchase is the more economical buy, but there are definitely people who'd save a lot of money with the subscription plan. However, the decision isn't always just about the price, or people wouldn't lease vehicles. I do think it's possible that the subscription concept will go over very well with consumers.

  • magicalclick

    If you are using all of those products, the service os pretty cool. For most people, I recommend the Home edition sold at Costco, it works with 3 PCs and price is reasonable. For me, I have HUP Wink.

    Leaving WM on 5/2018 if no apps, no dedicated billboards where I drive, no Store name.
    Last modified
  • Blue Ink

    @wkempf: The problem is the subscription concept can be hard to sell someplace. Buying a physical license I get to spend a well-known amount of money if and when my budget allows, something I don't get to do with a subscription. Peace of mind is priceless.

  • MasterPi

    @Blue Ink:It also becomes that extra thing you need to keep track of annually. You're going to be actively questioning yourself whether you're fully making use of the subscription, which could impact a decision to renew it later. I'm interested in how normal people will perceive it.

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