Are You Ready To Subscribe To Microsoft Office?

By Wolfgang Gruener, published on July 2, 2008 at 1:20 PM
Source: Tom's Guide US | Keywords: , , | Themes: Software
Syndication: Add to your Google homepage Add to My Yahoo!

Redmond (WA) - ’Careful’ is probably the most appropriate term to use when describing Microsoft’s introduction of a software subscription model to consumers. Transitioning users from a purchase-to-own to a rental model of its software has been discussed for many years and now such a product is officially available. To sweeten the deal, Microsoft throws in a subscription to its Windows Live One Care service.

It is one of these products and service you may not look forward to, but knew it was coming: A subscription model to Microsoft Office. Microsoft envisions that more and more users will not own a copy of Microsoft Office in the future anymore, but rent it and provide the company with recurring revenue stream every year, instead the onetime fee you pay for the software today.

The consumer subscription offering is called "Equipt" and includes Microsoft Office Home and Student 2007 - with the latest versions of Word, Excel, PowerPoint, OneNote for their personal and school projects, as well as Windows Live OneCare. Software updates are included in the deal, so you always get the latest version of Office and OneCare. The price? $69.99 per year.

Microsoft’s move appears to make sense in a time where our everyday life is increasingly based on subscription models. You are used to subscribing to your phone and cellphone service, your Internet service, cable service, Tivo and soon you may be subscribing to a music download and cloud services - so why not subscribe to your basic software as well?

To us, this one seems a tough one to swallow. In the end, PC users are used to owning their software and paying for software only once - usually at the time you purchase a new PC. It isn’t particularly difficult to see Microsoft’s motivation to get you hooked on a software subscription model: On average, you may be paying much more for your software than you do today and you get used to a subscription model and may be much more likely to subscribe to other services as well.

To make the transition more convincing, the price tag for Equipt in fact is low, if you consider that Windows Live OneCare is included- in fact it almost appears as if Microsoft is sacrificing OneCare to make the case for its new subscription model. Windows Live OneCare alone is priced at $49.95 per year - and you are used to paying for your anti-virus software on an annual basis already. From that view, the Office package will cost you only $20 per year. If you are a pessimist, you may say that Microsoft just bundles the package to get $20 more from you every year.

Is the pitch via OneCare enough to convince you to subscribe to Equipt? Let us know what you think by writing a comment below.

Comments | Print | Send to a friend
Slideshows related to this news

Google Ads

Comments

dacman61 07/02/2008 7:42 AM
Hide
-0+
dacman61

Well it looks like I will be most definitely be sticking with Open Office now.

lafery 07/02/2008 7:54 AM
Hide
-0+
lafery

While it convinces me to switch to Open Office...

Anonymous 07/02/2008 7:54 AM
Hide
-0+

Are You Ready To Subscribe To Microsoft Office ?

Not really... but I?m ready to replace it with Open Office... What do you think Bill ?

Anonymous 07/02/2008 7:56 AM
Hide
-0+

Truthfully if it was a buisness that subscribed and they also offered a "buisness" suit for like 50 dollars a year or something. It would be a great deal since almost every 2 years or so MS has some new office product out so you could stay ahead of the curve.. And not have to pay the deadly fee of reuping everyone for 300 to 400 a license.. Although bulk licensing is probably a lot cheaper.. just my 2 cents..

gm0n3y 07/02/2008 8:19 AM
Hide
-0+
gm0n3y

In business we are used to paying thousands of dollars a year for MSDN subscriptions from M$. They are extremely expensive (especially considering I work for a small company), but they have been the SOP for many years now.

nachowarrior 07/02/2008 8:22 AM
Hide
-0+
nachowarrior

i can see how it *might* be benificial to the ignorant still using micro$haft office... but with open office and a SLEW of other great programs out there that just seem to work better, and run faster, WHY? honestly... why?

Anonymous 07/02/2008 8:23 AM
Hide
-0+

I think this is a good idea.
I know myself as well as many others would
never buy the latest version of Office
or other high priced applications suites etc.
costing $300 or more.

Now if I pay something like $70 per year
and then upgrade each year it is a definite
advantage to subscribe. My only issue is all
the possible headaches involved with lost
subscriptions, or valid but not working subscriptions
etc.. and all related problems.

I guess we'll see how this pans out.

hannibal 07/02/2008 9:04 AM
Hide
--1+
hannibal

In the world of very fast internet connections this can be guite succesfull busines model, but if it take's 3-7 hours to uodate your office... Well that is guite another story.
It allso depend on relative prices of subscription and traditional pay one time model. I personally use the same version of office program 4 to 8 years (when I buy new computer...). So not so long time...
$300/8 years = $37,50/year.
But when I screw up my computer (again) with some new software or hardware and I have to reload all those programs again... I am even willing to pay something extra for not having to do it.

I am not sure how this will affect piracy, but as long as this model is not the only way (there still are people who don't have broadband, and newer will have (because of great distances) I think that there always will be the "old way" of getting programs.

And the same thing as with those internet online music stores... you newer know when you don't get your program any more.

hannibal 07/02/2008 9:04 AM
Hide
--3+
hannibal

In the world of very fast internet connections this can be guite succesfull busines model, but if it take's 3-7 hours to uodate your office... Well that is guite another story.
It allso depend on relative prices of subscription and traditional pay one time model. I personally use the same version of office program 4 to 8 years (when I buy new computer...). So not so long time...
$300/8 years = $37,50/year.
But when I screw up my computer (again) with some new software or hardware and I have to reload all those programs again... I am even willing to pay something extra for not having to do it.

I am not sure how this will affect piracy, but as long as this model is not the only way (there still are people who don't have broadband, and newer will have (because of great distances) I think that there always will be the "old way" of getting programs.

And the same thing as with those internet online music stores... you newer know when you don't get your program any more.

hannibal 07/02/2008 9:05 AM
Hide
--3+
hannibal

In the world of very fast internet connections this can be guite succesfull busines model, but if it take's 3-7 hours to uodate your office... Well that is guite another story.
It allso depend on relative prices of subscription and traditional pay one time model. I personally use the same version of office program 4 to 8 years (when I buy new computer...). So not so long time...
$300/8 years = $37,50/year.
But when I screw up my computer (again) with some new software or hardware and I have to reload all those programs again... I am even willing to pay something extra for not having to do it.

I am not sure how this will affect piracy, but as long as this model is not the only way (there still are people who don't have broadband, and newer will have (because of great distances) I think that there always will be the "old way" of getting programs.

And the same thing as with those internet online music stores... you newer know when you don't get your program any more.

kman7607 07/02/2008 9:33 AM
Hide
-0+
kman7607

Microsoft Office -1 :(

Open Office +1 :)

nukemaster 07/02/2008 9:40 AM
Hide
-0+
nukemaster

@ $20 a year(if you use onecare), its not overly costly when you think about it. Always having the latest office is a good idea. i see office sold from anywhere from 160 to 300+, at those prices this is cheap. It will take 8 years to pay off one copy of office and you still have that old version.

I do use open office anyway, but imo this makes office cheaper for anyone with onecare.

Anonymous 07/02/2008 10:06 AM
Hide
-1+

So are they going to charge a cancelation fee now as well if I want to stop my "rental" of MS Office. Time to switch to Open Office

NeoDude007 07/02/2008 10:15 AM
Hide
-2+
NeoDude007

How about everybody either 1) Ignores the subscription model because.... they already HAVE office.... or 2)Open source for the win.
And then M$ goes...oh wait, all the idiots that bought the subscription are sending you documents in some odd format that you need the subscription to read. $$$$

Anonymous 07/02/2008 10:24 AM
Hide
-0+

LOL! Hannibal thinks it "depend on relative prices of subscription and traditional pay one time model." And how exactly does one compare the price of subscription to the price of a model that no longer exists (oops, I'm getting ahead of myself by... err... a year perhaps)?

IMHO, that's why they priced DRMsta so high - so the coming subscription model will compare favorably while to two are briefly availble at the same time (not that I'll be using either flavor).

+1 Open Office
+1 Ubuntu

soloman02 07/02/2008 10:38 AM
Hide
-0+
soloman02

Unless you don't care for onecare, then Office is more expensive to subscribe to. If you use office for more than 4 years it will cost more money per year to use the subscription. However, if you buy a new office every 4 years (assuming MS release a new version every four years) using the subscription will be just barely cheaper.

Anonymous 07/03/2008 12:20 PM
Hide
-0+

Don't believe the MS bull... This isn't cheaper at ALL. Remember with the subscription model you HAVE to maintain an internet connection, so add that price on as well, along with the price of all the hardware to actually have an internet connection.

Then there is the utter lack of trust such a subscription model will have - if I have to log in to MS to type a letter, what guarantee do I have that MS isn't reading and indexing every document I have? What if I need to write a letter on my laptop, on the move with no net access?

If the software can at any stage be operated offline, then you know for sure that crackers are gonna have at it in no time.

So, if it doesn't prevent piracy, and as such generate more sales, why would MS price it cheaper? Oh I know! To get you hooked then drive the prices up mercilessly!

Don't like paying a few hundred for a copy of office? Try paying a few hundred a year, or a quarter...

Alternator 07/03/2008 3:27 AM
Hide
-1+
Alternator

@Karmakaze,
It's invalid to add the price of the internet connection... Unless you wouldn't have one otherwise? I'm guessing since you are posting on the internet that wouldn't be the case for you though (same goes for the hardware).

I think this offering from MS sounds reasonable provided they also allow a viable option of purchase outright as well.

I have no idea what this OneCare is so will ignore that. My points I would evaluate this on are:

A) Financially speaking, to maintain office is the cost/benefit there for me as the consumer to go this route... I suspect the answer is Yes if they have decent options for customising what I do and do not get in the package.

B) How restrictive/cumbersome is the subscription system... I suspect the answer will be more restrictive than I care for (MS and activation put me off already)

virtualban 07/03/2008 8:48 AM
Hide
-0+
virtualban

I agree with NeoDude007. The reason why in ONE computer we got a piece of software that made Office2003 and OfficeXP read Office2007 files was because some people started sending us files in that format. And those are the exact kind of people that complain afterward if we forget and send them .tif instead of .jpg or .pdf attachments...

virtualban 07/03/2008 8:56 AM
Hide
-0+
virtualban

While there might be some advantage by the user from this kind of software distribution, MS wouldn't think twice and cut off the "Old Fashioned" but still requested method. Just like they did with the still requested Windows XP!!
Especially for Office, they've got to cover up the cost of patching their buggy software. There is little reason IMO why would anybody want to buy new, buggy, software (0ffice 2oo7) when the old one works just fine, and if it does not, it can/should be updated/patched without conversion to a completely new crap. If they can add support for .docx for example, they can add support for everything else.
And, security issues would be less of an issue if they made a secure OS in the first place.

virtualban 07/03/2008 9:08 AM
Hide
-0+
virtualban

On second thought, this is really good for the user!
I mean, as long as they got their share of the profit, they will "work" on perfecting a "good" software that will probably get better and better, instead of creating something stupid and completely reinvented just because people have already bought their software and are no longer paying them anything, so the "logical" thing to do is screw the customer and come up with a new Office version while cutting back support for the old one.
Still, good thing or not, I will never go for any software that requires/forces me to be online for any reason and for any moment of time at all! If I want to be online, that's my CHOICE.

cmj 07/03/2008 3:24 AM
Hide
-0+
cmj

did anyone said it must get online to use the software?

But I just hate to pay for bundled items that I would never use.

cmj 07/03/2008 3:24 AM
Hide
--1+
cmj

did anyone said it must get online to use the software?

But I just hate to pay for bundled items that I would never use.

Balshoy 07/03/2008 3:43 AM
Hide
-0+
Balshoy

So what MS is saying is give Open Office a try right? :D

jivdis1x 08/27/2008 3:53 AM
Hide
-0+
jivdis1x

One subscription per PC? One subscription per person for up to set number of PC? If the latter is the case then it would be worth it for someone who own more than 1 PC.

Note You are going to post a comment as anonymous.