backtop


Print 71 comment(s) - last by callmeroy.. on Jul 11 at 11:13 AM

Microsoft hopes to lure bargain hunters with new subscription model, perhaps hints at changing business plan

There have been some in the software industry who have advocated a subscription model for their programs.  They suggest that rental programs could save both the consumer and the software companies.  Microsoft seemed to validate those advocates as it announced that it will begin distributing rental copies of its popular Office productivity suite.

The new deal will bring copies of the software to over 700 Circuit City stores across the country.  The latest version of the Office suite will be bundled with Microsoft's Live OneCare computer security software and will work for $70 per year.

Bryson Gordon, a group product manager for the Office group said that Circuit City does not have an exclusive distribution agreement; it was merely the first to jump on the opportunity.  He said other retailers and PC manufacturers such as Dell may be offering the software bundle soon as well.

The new software bundle is named Microsoft Equipt and comes with Word, Excel, PowerPoint and OneNote, plus OneCare and a handful of existing free Windows Live applications.  It was rumored for months, under the codename "Albany". 

Mr. Gordon explained that Equipt is aimed at people who when buying a new computer would skip and Office purchase and merely reuse old Office disks or pirate a friend's copy.  He said that the $70 price tag falls in the middle of McAfee Inc. and Symantec Corp's security offerings, so users can justify the purchase merely as a security suite and get the productivity software as a bonus.

Matt Rosoff, an analyst for the independent research group Directions on Microsoft remarked that while Office is the industry standard, the OneCare security suite has seen slow adoption.  However, he feels the low price and creative business model may help it catch on, probably part of Microsoft's intention with the bundle.

He argues that Microsoft's main focus, though, is increasing the number of Office users, and trying to keep them from an increasing number of free solutions, such as Google's popular Docs software.

Equipt, like Office Home and Student 2007, allows installation on up to 3 machines.  Minor updates are automatically provided, through Window's update software.

The software will be available mid-July.



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

RE: well
By JediJeb on 7/7/2008 6:29:11 PM , Rating: 2
I agree on this. To me it's like the difference in paying rent for my house or buying one. Everyone rants and raves about having the newest version of Office, heck I'm still using Office97 and it works great for what I need to do. Had I been paying $70 a year for that I would now have paid out over $700 for the software, but then Microsoft would have forced me to upgrade by no longer allowing me to pay the yearly fee for Office 97.

I drive a 96 model vehicle that still runs great and is paid for and has insurance of less than $400 per year, why upgrade. I use Office 97, still works and cost me nothing now, why upgrade. No use wasting my money on things I don't need, especially now that I need that money to buy gas and food and other things that are just getting more expensive.


"A politician stumbles over himself... Then they pick it out. They edit it. He runs the clip, and then he makes a funny face, and the whole audience has a Pavlovian response." -- Joe Scarborough on John Stewart over Jim Cramer














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki