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Microsoft tries to sell home Office users on subscription pricing

Microsoft has unveiled its first attempt to seduce consumers into paying subscription pricing for its Office 365 package. For $99.99 a year, buyers get the Office 365 Home Premium, which gives them a license to use Word, Excel, PowerPoint, OneNote, Outlook, Publisher, and Access applications on five computers in the home. …

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UK users?

No doubt that will be 'converted' to £99.

FAIL

Re: UK users?

The UK price is £79.99 per year including VAT. Presumably the reg missed out that fact to catch you out with that £99 presume!

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Re: UK users?

Which is almost exactly what it costs for a perpetual license for Office for home users. I doubt there's enough interest in the extra bits from home users to sell many subscriptions at that rate.

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Re: UK users?

"I doubt there's enough interest in the extra bits from home users to sell many subscriptions at that rate."

Which is a missed opportunity. Had they bundled something like 100GB of cloud storage then I'd be in there. Probably other things would appeal to other users, but looks like they're spoiling the ship for a ha'porth of tar.

Re: UK users?

lol @ "open source office suites such as OpenOffice, and latterly LibreOffice, are proving so popular in Europe at the moment" - very funny joke.

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Boffin

Re: UK users?

@TheVogon - hello RICHTO.

For your erudition - Munich switched from Windows to Linux / Open office and have ALREADY saved 11 million euros. They will continue to save even more in the future, now that they have already covered the one-off cost of switching.

FYI - even large companies are now demanding justification for employees to use MS Office. I'm talking bluechip and I am talking about huge bluechip. I know this first hand. They are standardising on LibreOffice to save money.

A lot of this is down to BYOD - people are using Android and iDevices these days and exchanging data as PDF's or in ODF formats.

Mushroom

Re: UK users?

LOL @ Already. They started the project over a decade ago and still havnt successfully completed it.

"For the entire project, which is now ending it's 79th month, the rate is of conversion has been 31 per month, or about one per day since May 28, 2003. Assuming they could triple throughput to 85 machines per month, the

project will be completed in another 11.2 years, in the year 2020."

The savings are bullshit too - it cost them far more than they will ever save to actually try and migrate.

Not to mention this is pretty much to ONLY attempt to do this anywhere as - everyone else long ago realised what a waste of time this was, this utter failure being a great example of why it isn't worth it....

Anonymous Coward

Re: UK users?

Actually the migration cost Munich €43 million more than staying with Microsoft:

http://www.itworld.com/open-source/337658/microsoft-wont-release-study-challenged-success-munichs-linux-migration

Freiberg also abandoned Open source by the way:

http://www.h-online.com/open/news/item/Freiburg-to-switch-back-to-MS-Office-1753898.html

Anonymous Coward

Re: UK users?

The justification in those companies is '"I need Office, and I need it to work" - so everyone still has MS Office...

Anonymous Coward

Re: "the migration cost Munich €43 million more than staying with Microsoft:"

It would be more accurate to say that Microsoft have used made-up numbers, fabricated on their behalf by long standing tame Microsoft Alliance Partner, HP, to allege that staying with Microsoft would have been cheaper. But when challenged to substantiate the numbers and publish the study, neither HP nor MS was willing to do so.

99% of all statistics are made up. Especially TCO ones which the certified Microsoft dependent ecosystem are likely to use in a desperate attempt to preserve their rapidly decreasing relevance in a world where Windows no longer has a monopoly outside the IT department.

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Re: UK users?

Yeah, they recently switched to Euro currency pricing including in the UK - which some people got upset about on various sides of the deal. So now $1 of software indeed costs €1 in the EU. It used to be $1 = £1 way way back, so this is kind of better.

I think that remote desktop is explicitly ruled out for application sharing in the Windows licence I read last (Win 7), and elsewhere. VNC is probably illegal on Windows as well.

FAIL

Re: UK users?

The extra bit is outlook, publisher, and access plus the skype calls and 5 licenses instead of the current 2010 3.

YMMV as to whether that's worth it for you, but around here(Oz), the price difference between Office Home and Office with Outlook is about $100 retail rate and you only get one license when you add outlook rather than 3 without it. The price with the other two products is even higher.

I'm not saying the price is worth it. Most home users don't need access or publisher and unless you've got an exchange server to hook it up to outlook is largely surplus to requirements. Five licenses instead of three is nice, though we won't really know whether home and student will end up with five for 2013 or not. If you need those extra things though and you plan on upgrading your office and you make skype phone calls, even the UK price is a steal.

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Stop

Greedy bastards

Are MS trying to kill their joke of a subscription model even before it starts?

£80 per year for a bloated, hard to use (thanks to TIFKAM influence) office suite containing a massive amount of crud that no sane home user is ever likely to want to use? Fine, it can be installed on up to five systems, but how many home users really care about that? To save money most are willing to have it on one or two system and leave the others as they are.

As a generalisation, home users don't care about Outlook, most use webmail these days as online mail services integrate well with mobile phones, attempting to use Outlook effectively ties you to MS mail services of some description. Publisher? Sane professionals don't use it, home users get by with Word. Next they'll be flogging powerpoint to home users... The home users that may want to use much of this software tend to want to use it for business purposes, which if you check the licence terms on this service is prohibited - it's for home, personal use only.

Now if MS were to provide something like a subscription service for just MS Word at £15 per year for home use only then they'd have a massive uptake. Unfortunately the greed has set in and they're more interested in foisting the rest of the MS Office suite at users and trying to get them locked into proprietary non interoperable software packages and systems than providing a good value service for end users.

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WTF?

Re: UK users?

@TheVogon - so you are accusing the Munich council of lying?

Or is it more likely that you are spreading FUD, like your usual lies about Linux being less secure than Windows?

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Boffin

Re: UK users?

@AC shills -

that "report" that the Munich Migration cost more money than it has saved was paid for my Microsoft. I wonder if it is trustworthy?

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Re: UK users?

Meanwhile Freiburg - run by Die Grüne and about as countercultural as you'll find - decided in November to move back to MS Office.

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Meh

Re: UK users?

Most home users don't need........publisher

In certain places, MS Publisher is pretty much de rigeur for school projects as it's simple to use and produces good results. I'd love to use the OO equivalent, but there isn't one.

Investigations into open-source alternatives have revealed that these fall into two categories. Either a full blown DTP package, which is waaaaay OTT for what's required and has a learning curve like the north face of the Eiger, or something simple but incompatible and shit.

Thus for the kids' homework, MS Office is a "must have". Something fairly compatible isn't good enough, as the transition between using Publisher at school and whatever-it-is at home has to be seamless, so the UI needs to be near as dammit identical.

Anonymous Coward

Re: UK users?

"Actually the migration cost Munich €43 million more than staying with Microsoft:"

@AC/RICHTO/TheVogon - still at it I see

Re: UK users?

Re: AC 23:05

Good to see that the microsoft trolls are reading this forum. Shame that they can't kick the habit of posting MS sponsored lies. Funny how they always pos A/C -- not got the balls to admit who you are then ?

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FAIL

Re: UK users?

Actually the migration cost Munich €43 million more than staying with Microsoft:

http://www.itworld.com/open-source/337658/microsoft-wont-release-study-challenged-success-munichs-linux-migration

Did you even read that article?

What it actually says is that someone at HP produced a report that seemed to say that the migration to LiMux cost Munich more than staying with Windows, but that neither Microsoft nor HP will now allow anyone to see the report (which suggests that it may contain errors) and that the people in Munich still believe that they are saving money (and one presumes that they've done their sums properly).

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Re: UK users?

@dajames - indeed, the report is a joke - but the rumour of it allows astroturfing shills to spread FUD as we see happening in this thread.

Some people fall for it. It's one of the reasons I dislike MS, they use dirty tricks.

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FAIL

Re: UK users?

Well done Eadon, you got the price right this time, still missed out the bit where I pointed out the utter failure of another City to roll it out.

6/10 for effort.

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Stop

Re: UK users?

dont bother arguing. I tried once and I have experience in costing an open source solution change. As I said back then, open source is not necessarily cheaper than an MS solution. Like most things it depends what you want and what resources you have. MS worked better for us. Open source wasnt cost effective.

some people must bang their drums though regardless of listening to the customer.

Anonymous Coward

Re: UK users?

Actually the migration cost Munich €43 million more than staying with Microsoft:

Take a look at:

http://www.h-online.com/open/news/item/City-of-Munich-disagrees-with-HP-s-Linux-migration-study-1797232.html

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You know, as a home user, I think this would make me look for alternatives. It's worth noting that home users are generally not as demanding as business users (when was the last time you saw home user with a marginally complex Excel doc?).

100 USD a year is just too much for what they are offering, which is to say a suite of tools which only gets used 5 times a year or so (for the average home user). If they want users to move to a subscription model (which they DESPERATELY need, as they are starting to have difficulties coming up with new improvements), then they need to get this into the cheap enough to not even be worth thinking about it range. I'd put that at 20 USD a year.

(YMMV)

Anonymous Coward

£16 year per system is no huge deal for those of us who are employed, but yeah if you live alone or own 6 devices doesn't work all that well.

£7.99 a month is in the "not worth thinking about" range to me, but yeah. £79.99 a year would be too much for me to pay all in one go right now.

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Owning six devices isn't an issue for most people on here, you'd just set it up on one machine and then log into that machine remotely over your network to run it. True, I'm assuming that Windows 7 and 8 keep Remote Desktop but I'd be surprised if it's gone.

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Boffin

Why have the hassle of remote desktops when you can have LibreOffice?

@HolyFreakingGhost - Open Source alternatives to Office can be installed on as many devices as you like. No need for those logging onto remote desktops and all that hassle of working with the expensive MS Office unproductivity suit. And good luck reactivating MS Office if your hardware changes.

Microsoft products are extremely inconvenient to use and manage. Open source frees you from these hassles and they are free.

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Windows

@Oninoshiko

Agreed.

This is one of those situations where MS Office isn't the best choice IMO. In fact; although it may sound very cost effective at first you'll effectively end up paying (much) more in the longer run while you actually get a lot less functionality, esp. in comparison to other solutions.

Because if you keep that subscription for 2 years you're already paying much more than a single copy of the desktop version. And although the license of that desktop version doesn't allow multiple installations one could ask him- herself how many times it would happen when everyone will be working with Office at exactly the same time? Quite possibly the license could be shared.

But most of all; in comparison to the online variants of MS Office I think its safe to say that both LibreOffice as well as OpenOffice can featurewise blow it out of the water so to speak. For no additional costs at all.

I'd say people are actually better off with the open source variants in this scenario. Because if, for whatever reason, you do run into a situation where some of the more advantaged features could come in handy then you're pretty much screwed with Office 365. Its quite a decent product, but by far comparable to a desktop version featurewise. The open source variants otoh. do provide all you might need as a home users, even more, and for a lot less money too.

With plans like these I don't see Microsoft coming out on top. Too expensive while providing too little features.

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Re: Why have the hassle of remote desktops when you can have LibreOffice?

I didn't mention Open Source alternatives to Office. In case you failed to understand the point of my post, it was that having a single license and six devices is no issue, since I'd imagine people on here would know how to set up their home network to log onto that device and run Office from there.

No mention of Open Office! No mention of Google Docs! No gratuitous mentions of Open Source at all! Just pure, on-topic comment. Thanks for the downvote though.

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> I'd put that at 20 USD a year.

Which is why the VLA "use at home" deal is around $15

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Re: Why have the hassle of remote desktops when you can have LibreOffice?

and to carry on the theme of on-topic non-gratuitous mentions...

You use a remote desktop because your ARM cpu isn't up to running that spreadsheet you created on your PC.

You may not want to try sync'ing your Documents directory

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Linux

Arrogant and Insane...

Expecting people to spend $100 per year on a problem that was already solved 20 years ago? Really?

For most people it should be $50 and done, period.

Most people simply don't need Word Perfect style overkill. The only reason this is even remotely an issue is the perception that you need to be compatible and even that is being eroded by tablets.

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Re: Why have the hassle of remote desktops when you can have LibreOffice?

"You use a remote desktop because your ARM cpu isn't up to running that spreadsheet you created on your PC.

You may not want to try sync'ing your Documents directory"

For a while I tried to keep home directories synced across two Macs and one Windows machine. I have no idea why I thought this was a good idea, since it sucked big-time.

I'd also use a Remote Desktop if I had to use software on a machine that wouldn't run on others for any reason, but an anaemic CPU is definitely a good case, yes. I've also found myself using Remote Desktop because I've got an old XP license for Office on a Windows machine, but no license for Office on the Mac, and for whatever reason it was much more convenient to be using the Mac at that moment than swap to the Windows machine.

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FAIL

Re: Why have the hassle of remote desktops when you can have LibreOffice?

Ah yes, hassle free open source. I had LibreOffice running very nicely as a backport on my Ubutu 10.04LTS laptop. Until last week, when an upgrade removed LibreOffice completely, but left enough cruft in my system that OpenOffice wouldn't install. Yes, that's what every business user needs, the excitement of wondering whether a business-critical application will just vanish one day. Keeps you on your toes.

Still, all I had to do was upgrade to Xubuntu 12.04 using the handy distribution upgrade tool. Which left the system unable to boot, as is traditional with Ubuntu upgrade tools. So then all I had to do was reinstall from a USB stick, which went fine apart from the way that 12.04 no longer supports my wifi card, and it took four reinstalls and six reboots to find one of the many suggested solutions which worked.

Anonymous Coward

Re: Why have the hassle of remote desktops when you can have LibreOffice?

EPIC MEGA HYPER COLOSSAL FAIL! Should've used Linux Mint. It's the new Ubuntu, you know.

(Who am I now? :) )

Anonymous Coward

Re: Why have the hassle of remote desktops when you can have LibreOffice?

"For a while I tried to keep home directories synced across two Macs and one Windows machine. I have no idea why I thought this was a good idea, since it sucked big-time."

I presume Mac's being Unix based support Samba and thus Windows shares, why didn't you just host your home directory off one Mac and have Windows and the other Mac access it directly?

I have a Linux file server for that exact purpose, Linux clients access via NFS, Windows clients access via Samba shares. You should be able to setup something similar without too much hassle.

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Holmes

@ JEDIDIAH - Re: Arrogant and Insane...

Wrote :- "Most people simply don't need Word Perfect style overkill. "

And if I did I still have my old copy of WordPerfect and could get it to run too. I would have thought that nearly everyone with a PC has had a workable word processor at some time, enough for their needs. What do people do with this software - has it all rotted away?

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Boffin

Re: Why have the hassle of remote desktops when you can have LibreOffice?

@HolyFreakinGhost

- and I'm pointing out the inconvenience that the MS Office DRM is putting you through, and showing that the alternative, open source, means you don't have to jump through hoops to make one licence work (sort of) for more than one device.

MS are treating you like a criminal and inconveniencing you - a paying customer - and you still seem happy to use their products. Stockholm syndrome, I think the word is, for those that like their prison guards.

Happy

"For $99.99 a year, buyers get the Office 365 Home Premium, which gives them a license to use Word, Excel, PowerPoint, OneNote, Outlook, Publisher, and Access applications on five computers in the home. Subscribers also get 20GB of space on Microsoft's SkyDrive cloud storage system and 60 minutes worth of free Skype calls per month."

"If no payment is forthcoming, they will only be able to access their documents in read-only mode or via a printer"

My answer to this is to tell them to shove it up their arse, use Libre Office, and keep it all on your own hard drives.

"The biggest financial losers are those who purchase the Office Professional package. The $399.99 price tag converts to £254.1 or €296.64 at current rates, but the British will pay £389.99 and European counterparts get stung for €539.

It's not hard to see why open source office suites such as OpenOffice, and latterly LibreOffice, are proving so popular in Europe at the moment. US companies like Microsoft and Apple traditionally cite the higher costs of doing business across the pond as the reason for the price differential, but it's difficult to see how such high margins can be justified – in this hack's opinion, at least."

Microsoft = Gouge, Gouge, Gouge....... = Fuck them. Ripping you off = fucking them off.

and..........

"If they want users to move to a subscription model (which they DESPERATELY need, as they are starting to have difficulties coming up with new improvements), "

Improvements?

How do you top stupidity and grafting?

I know, lets change the packaging from 2013, to 2014 and double the prices!!!!

Smiley Face = Microsoft's best efforts sent me into the loving arms of Linux.

Facepalm

Best advertisment ever...

... for switching over to Open Office.

Re: Best advertisment ever...

I will do you one better.

Open office with the MultiCloud File Manager. This way you can store your files on any cloud service or locally. Google Drive anyone?

http://extensions.openoffice.org/en/project/MultiCloud

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Meh

They can charge

what they like, makes no odds to me. I just hope it supports ODF or earlier versions of Office file formats else wise all those people who use MS Office are not going to be able to open any documents I send to them.

Still that's their problem, just like opening proprietary standard documents in OO is my problem.

Anonymous Coward

Re: They can charge

Give us one good reason why they would want to open any documents you send.

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Re: They can charge

"else wise all those people who use MS Office are not going to be able to open any documents I send to them."

And with that attitude professionally you'll soon never have to send anyone a document again!

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WTF?

Re: They can charge

@admin - if people standardised on open standards - i.e. ODF - then there would be no problem. The problem is, Microsofts proprietary formats, which MS changes every 3 years to make life awkward for open source solutions trying to read these obfuscated formats.

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@HolyFreakinGhost

"And with that attitude professionally you'll soon never have to send anyone a document again!"

You're right there, but for completely different reasons than you may realize. I think the OP makes a perfect argument, and lets not forget that we're talking about home usage here, NOT business use.

But about that sending... A few months ago a friend of mine setup a list of stuff (todo list) for me and a couple of other people. Basically the idea to 'share' some sort of knowledge base. Needless to say; in daily (work) life he's using MS Office but at home its all LibreOffice for him.

He didn't sent us any format at all; he sent us the URL of a text document which he put online using the Google tools. I clicked, and could view and edit. Even though I don't have a Google account (nor have any desire to get one).

To some extend you can always accomplish the same using SkyDrive (though I'm not 100% sure about that anymore considering the major changes MS made in this field recently).

My point: with the OP's attitude he doesn't even HAVE to send documents around. IMVHO.

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Re: @HolyFreakinGhost

Sounds eminently sensible to me. I've been in academia for the last ten years, and got very used to habitually passing everything around in PDF which - like Adobe or not, and I lean towards the "not" camp on that one - is at least open, these days, and presents your document exactly as you intended it. Contact with the real world outside of academia was an ugly shock because people are asking for and demanding .doc files! I thought that had died out in about 2003 or so, except for out-of-date university admin departments. Alas, no.

Obviously I understand the need to pass around documents that can be edited; to me the sensible option always looked - and normally still does, despite the existence of .opf - to be .rtf which can be opened in Windows, Mac and Linux by a variety of programs, although I'm increasingly seeing things .rtf can't do so I'll probably revise that opinion the first time I get really irritated by something not working.

Simply avoiding the whole stupid issue and using cloud tools - whatever they are - is a perfectly reasonable alternative. At least you know that everyone is using the same word processor and the same fonts, so there's none of this rubbish with different word processors rendering the files quite differently which recently drove me potty importing a .doc into LibreOffice or exporting a .doc from LibreOffice into Word.

That or everyone just sodding use LaTeX and pass the source around. It's not hard to learn...

WTF?

Crazy Prices. Considering anyone who can take advantage of the Home User Program can get their own copy of Office 2013 for £8.95 this is just nuts.

The next step in this shift to a subscription business model is to phase out the boxed/download product, which will make the free Office alternatives the only choice for people with more sense than money.

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