Microsoft Introducing Subscription Model for Office
Office is the one Microsoft product even most Mac users don’t like to go without. Even the annoying Mac guy from the TV ads was bragging about how well Mac runs Office. It really is the one piece of software Microsoft has that is nearly universal, especially seeing now that Windows market share is dipping below 90%.
Now, Microsoft is planning an entirely new revenue model for Office: a yearly subscription. For $70 per year, users get Office, all the updates, and Windows Live OneCare, a service that already costs $50 a year. The service is being dubbed “Equipt.”
Subscription models are great for companies. Not only do they produce a steady, consistent revenue stream, but they also get customers hooked and more likely to purchase other services in addition to the one they’re already paying for. It’s quite remarkable how much a phone plan costs after all the features are added in. iPhone users are learning that while the phone itself is cheaper, the subscription plan is significantly more expensive than the previous one.
The add-on of OneCare does make the Office pill a little bit easier to swallow. OneCare is Microsoft’s anti-virus and backup package that I’ve not heard too many complaints about (other than the price). Packaging the two together makes sense, although one wonders if it will be possible to get one without the other. Will we be able to get Office only at a reduced price, or is OneCare just being thrown to the wolves to make the Office subscription more palatable?
While it is argued that this will be helpful for households with three PC’s since subscribers get three licenses, Microsoft Office Home and Student already comes with three licenses.
One thing is certain: it’s cheaper than .mac (or MobileMe) and arguably more helpful, though the services are quite different. Anybody who is already on OneCare will probably find it to be a pretty good deal, but purchasing Office for $110 and getting three licenses that are valid forever is still a much better deal.
Story via Wolfgang Gruener of TGDaily
Technorati Tags: microsoft office, equipt, onecare
