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From an internal marketing perspective, I understand the subscription model. It gives more consistent income than does releasing a new Office version and getting random tricklings of customer adoption.

However, as people have pointed out, this subscription model ends up costing customers 2-4x as much as the purchase model, WITHOUT adding any material customer value.

The last MS Office I purchased was a $100 student version 2 1/2 years ago. I may upgrade in another 1 1/2 years. For me, the "customer value" is $25/year, not $69 or $99.

At least this bungle opens the door for Apple, Google, and Open (Libre) to improve compatibility with MS Office. Right now I am forced to use MS due to lack of compatibility reading to and from Numbers. If Apple would just patch a few holes, I could be free from MS forever.
 
I really wish they'd offer a simple one subscription to rule them all at a fair price.

And exactly what would be a "fair price" for everyone involved? How much would you think is "fair" to charge someone to use the software you and your team developed at a cost of tens of millions or more?
 
For work, if you do pivot tables and VB scripting in Excel will Google or Apple work for you? No way, but you represent only 1% of the user base.

I'm accustomed to being in that kind of percentile. But pivot tables are for intermediate users, not top 1%. Maybe you aren't actually familiar with the top 1%. :D
 
From an internal marketing perspective, I understand the subscription model. It gives more consistent income than does releasing a new Office version and getting random tricklings of customer adoption.

However, as people have pointed out, this subscription model ends up costing customers 2-4x as much as the purchase model, WITHOUT adding any material customer value.

The last MS Office I purchased was a $100 student version 2 1/2 years ago. I may upgrade in another 1 1/2 years. For me, the "customer value" is $25/year, not $69 or $99.

At least this bungle opens the door for Apple, Google, and Open (Libre) to improve compatibility with MS Office. Right now I am forced to use MS due to lack of compatibility reading to and from Numbers. If Apple would just patch a few holes, I could be free from MS forever.

Somehow you think:
20gb OneDrive space
60 Skype minutes per month
1 tablet and 1 traditional PC license

is only worth 25$ a year?
 
It was with much sadness that I said goodbye to Adobe when they instituted a subscription plan for their software,...

This too. I've decided that my CS5 version of Photoshop is probably where I'll be stopping upgrades. The subscription model is only going to encourage me to keep using software I've already paid for and own outright. When the day finally comes that Office, Photoshop or whatever no longer work on my system, I'll be shopping for alternatives.
 
The subscription model is only going to encourage me to keep using software I've already paid for and own outright.

Sorry, but you need to re-read the license agreement that you agreed to when you purchased and installed the software. You don't own it, outright or otherwise.
 
Despite what anyone says, Office on iPad is pretty good!

My 2011 MacBook Pro logic board failed. I have to go a week without it and it is the last two weeks of school! :(

But, Office on iPad has been a lifesaver! I have an accounting excel project due that I was able to do and I've used Word a lot. I miss my Mac, but iPad Office has been amazing!
 
Somehow you think:
20gb OneDrive space
60 Skype minutes per month
1 tablet and 1 traditional PC license

is only worth 25$ a year?

I'm not MacLC, but for me, yes, that's only worth $25, because I don't use skype anymore, and when I do, it's skype-to-skype, which is free, I don't use OneDrive and don't want to, and I already have Office on my computers. I ONLY need a license for my ipad, and IMO $25 a year is a fair price for that.

Keep in mind that something is only valuable to a consumer if the consumer wants it. If I don't want all that extra stuff, it's not worth anything to me.

As an FYI, I am one of the 1% who do need actual MS Office - I'm currently an Office application developer as my day job.
 
Ok Microsoft. Now give me the chance of purchasing a lifetime license, like in past years...

Because i'd rather pay 99-199 bucks one time, than 69 bucks every mf year.

Agreed. Software as service benefits the company but is bad for the consumer. I don't rent software.
 
I'm not MacLC, but for me, yes, that's only worth $25, because I don't use skype anymore, and when I do, it's skype-to-skype, which is free, I don't use OneDrive and don't want to, and I already have Office on my computers. I ONLY need a license for my ipad, and IMO $25 a year is a fair price for that.

Keep in mind that something is only valuable to a consumer if the consumer wants it. If I don't want all that extra stuff, it's not worth anything to me.

As an FYI, I am one of the 1% who do need actual MS Office - I'm currently an Office application developer as my day job.

If you don't use any of that, then it wouldn't be worth it I guess. *shrugs*

I doubt they're going to go with an iPad only subscription model at any time soon, though.

----------

Agreed. Software as service benefits the company but is bad for the consumer. I don't rent software.

People keep repeating how SaaS is bad, but refuse to acknowledge that paying 200$ every three years or so costs only slightly less than 70$ a year.
 
People can still buy desktop Office as a one time purchase. This seems lost on a lot of people whenever Office 365 is discussed on here. Office 365 is a separate service that includes other products besides the desktop apps.
 
I hope they do something for students! I only need licenses for one Mac and one iPad! I have 2011 currently, but having the most up to date version that's also on my iPad would be nice. But at the same time my 2011 license was $12 for a single license through my school... Hard to beat that good deal!!
O365 University pricing is $69 for a 4 year subscription. (1 PC/Mac + 1 tablet)
 
Depends on how many people pay month to month, or on a yearly basis. When you're subscribing to something, you begin to work under the assumption that you're getting your moneys worth on a month to month basis. If they only continue to provide it as-is and never update it for years on end, or if they never fix any bugs that might arise, people will quit subscribing to it.

Remember, subscribing to something is nearly the total opposite of being locked in. An SAAS setup has to provide something worthwhile to you, and continually provide it to you over an extended period of time to keep you subscribing.

I don't think subscribing prevents lock-in, though.
Whether a publisher does a subscription licensing or not they can create lock-in or not.

Subscription seems to give them more ways to lock a user in. And in this particular case, MS is using (abusing) it:

In the old "Purchase a release if you want" model, if you stop paying for new Office versions, your old software keeps working.

With their subscription model if you stop paying your iPad apps stop allowing editing. (I don't know what MS does with the other parts of Office when you stop paying.)

They don't *have* to do it that way, of course. But they do. And it helps creates lock in.

There are also other ways to create lock-in that have nothing to do with whether software licensing terms are subscription based or not.

In the end it boils down to: for people like me, getting the iPad Office apps means a huge price increase compared to what I was paying.
 
Already to many options...either one time payment or free of charge at all. That's what people actually want.

Please don't ever start a business with this line of thinking.

You see, business have to give what people want combined with how the business plans to stay in business - a balancing act.

But of course if MS offered this for free, they would have to data mine your documents to sell ads. And we know how you all feel about that (unless it's Apple).
 
I'm firmly in the pay once group.

This subscription stuff offers nothing to me and everything to M$.

No thank you.

Same here, but I think that the use of MS Office is very much split up.

While I work with spreadsheets none of them require all the functions
and I don't need the latest.

M$ knows this which is why they offered home, student etc. versions.

For now there are plenty of FREE options for light users, so M$ will eventually have to come out with a reasonable offer.

This isn't it!
 
Still too expensive, considering Netflix is 9.95 all you can watch.

Maybe 6.95 if included access to all of Microsoft's personal/small business software (Windows, Window Server, Office, etc.).
 
At least you're allowed to store files there. Apple's iCloud (which sells for 40$ for a whopping 20GB per year) is almost useless for many users.

Agreed. For me iCloud only syncs contacts, notes, and my Ember library (because there is no Dropbox option).

Office for the iPad would be so much more useful if one could open files from any source.
 
Here's a scenario that cautions me. The personal 365 account allows an install for one mac and one ipad. What happens if either of these devices has to be replaced? Say, my ipad breaks and I get a replacement from the Genius Bar. Will I be able to still use my personal 365 account for the ipad? I can't find anywhere on the microsoft site that addresses that potential problem.
 
The $99 per year Home Premium subscription is a good deal for our household, since we have 5 macs and 2 iPads.

I agree that this individual subscription seems mighty steep at $70 per year for just 1 computer and 1 tablet. The OneDrive storage is a plus, but still not enough to make this a good value in my view. I think the market will correct the pricing, and we will see the offering drop to closer to $50 per year. At that price, MS will get more takers, since Apple charges $40 per year for 20gb of storage only.
 
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