Blue Crab Boulevard

Microsoft Missing The Point

Microsoft has big plans to rent you a copy of Office. Personally, I think they are missing the real reason people are flocking to other, free alternatives.

With its Office franchise under attack from a host of competitors offering free software, Microsoft (NSDQ: MSFT) is hoping that a new subscription pricing model for its cornerstone desktop franchise will encourage consumers to continue upgrading to the latest editions of the product.

Microsoft said Wednesday that it will give consumers the option of buying an annual license for Office and its Windows Live OneCare security package for $69.99 per year under a program called Equipt. The license covers use of the software on up to three computers and includes access to all future product upgrades…..

….The emergence of free software could be hurting Microsoft's bottom line. The company said that sales of its Office products among consumers dropped 39% in the most recent quarter. The company blamed most of the decline on the fact that the previous year's third-quarter results were significantly boosted by revenue that had been deferred under an Office 2007 upgrade program.

Still, consumer sales of Office have shown no growth over the past three quarters, Microsoft said. The problem: Microsoft's Office revenue typically jumps when a new version is introduced, then quickly tapers off.

Just yesterday I had an experience with Office that shows why they have a problem, at least in my opinion. I tried to download a template from Office Online and was denied. Why? Because my fully legal copy of Office is the 2002 version. They refused to allow me access even though many of the templates in question are marked clearly are being for earlier versions of Office.

That's what is putting people off.

Geek Stuff | Gaius Saturday, 5 July , 2008

By Anthony (Los Angeles), Saturday, 5 July , 2008 @ 10:31 am

I never switched from Office 97, but lately there’s been a need for updated software. I’ve hated my experience of Office 2007 at work (the genius who came up with "ribbons" should be shot), so, at home, I’m gradually switching to Open Office, which strongly resembles Office 2003. So far, so good, and Mickeysoft has lost another customer.
By Sam, Saturday, 5 July , 2008 @ 5:07 pm

There are so many alternatives for consumers that don’t need the heavy duty applications that businesses do. Free programs, internet versions, and so on. I predict that Office will eventually be a business only product. For instance, Many of the analysis programs I use at work interface with Excel, so I use it all day long. But at home, I very rarely have a need to use Excel.
By ThomasD, Sunday, 6 July , 2008 @ 12:34 pm

What puts me off is the notion that I continually want or need upgrades. I bought what I wanted, and I still like what I bought. My Ace claw hammer works just as well as the day I brought it home from the hardware store. So long as I do not misuse I expect it to provide many, many years of service with little additional care or maintenance. Likewise, the idea that I would ever ‘license’ a hammer is just as plain foolish as licensing something like Word.
I am a purchasor, not a guaranteed revenue stream.
By crosspatch, Monday, 7 July , 2008 @ 12:50 pm

ThomasD, the thing is, nail manufacturers don’t change their product every year so that you are required to buy a new hammer. Microsoft does things such as changing file formats between versions causing people grief if everyone involved in sharing data aren’t using the same (i.e. latest) version of the product. In business, to go and ask a customer to downgrade the file format to an older version is something of a faux pax. Microsoft knows that and uses that as a "lever" to get everyone to upgrade to newer versions.I don’t like Microsoft very much.
By Sylvia, Monday, 7 July , 2008 @ 1:09 pm

Unfortunately, as an editor, I have to run the programs that my clients use, like PowerPoint and :::cringe::: Word. So far I’ve been able to avoid Vista.
I’m with ThomasD. I adore my old hammer.
Gaius, nice scenery change!
By Sylvia, Monday, 7 July , 2008 @ 1:09 pm

Unfortunately, as an editor, I have to run the programs that my clients use, like PowerPoint and :::cringe::: Word. So far I’ve been able to avoid Vista.
I’m with ThomasD. I adore my old hammer.
Gaius, nice scenery change!