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Microsoft to lower Office prices | |
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| Time: 09:55 EST/14:55 GMT | News Source: Seattle PI | Posted By: Brian Kvalheim | ||
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Microsoft Corp. plans to drop the prices for its Office XP suite of business software and its individual programs by about 15 percent, starting Wednesday. The company also said it will provide free technical support to businesses that receive software upgrades under the company's controversial Software Assurance licensing program. The drop in Office XP pricing comes as Microsoft is readying its newest version, Microsoft Office System 2003, for release later this year.
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| #1 By 7390 (198.246.16.251) at 5/28/2003 10:03:39 AM |
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let us see how long it takes for a whack job to call this "dumping" or MS extending it's monopoly.
where is SodaJerk when you need him? |
| #2 By 3653 (63.162.177.143) at 5/28/2003 11:04:44 AM |
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"universal style of licensing"?
Do you live in the IT world? Microsoft was just about dead-last with their Licensing 6.0 plan. All the other "enterprise" software makers went that way years ago. |
| #3 By 135 (209.180.28.6) at 5/28/2003 11:31:54 AM |
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Fascinating. So Microsoft is finally listening to me?
Although 15% isn't enough, they should drop prices by 50%. |
| #4 By 37 (66.82.20.150) at 5/28/2003 11:44:59 AM |
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Personally, I believe they should raise the prices more and more as the competition continues to grow. This way we will find out whether or not their product is selling because it's a monopoly, or because it's the better product. If the consumer demand shows they won't pay for the product, and decide to go with the competition, then MS will lower the prices to regain lost market.
I think that if Microsoft can get say, $2000.00 for an Office Suite legally, with out abusing it's monopoly, then it should charge that much. Granted, I personally wouldn't pay that much, and it would direct me to the competitors. Unless you want to get the market regulated and controlled by the Goverment (like gasoline for example), MS should be able to charge what ever they want. This post was edited by Brian_MS_MVP on Wednesday, May 28, 2003 at 11:46. |
| #5 By 37 (66.82.20.150) at 5/28/2003 1:29:45 PM |
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Obviously somebody who owns MS stock.
Actually, that would be a DISADVANTAGE if it didn't work. And most likely, it won't. So, your attempt to make me look selfish is unjustified. My point was the open/free market. Nothing to do with myself gaining/benefiting from this. (and no, I don't own stock in MSFT) You add an interesting point about the 100% compatibility. However, are you sure that 95% of the businesses out there need 100% compatibility? I'm thinking no, otherwise we would not have the widely popular StarOffice/OpenOffice/WordPerfect Office suites still on the market. (all of which brag about their compatibility with Microsoft Office as their SECOND highest selling point right behind PRICE). This post was edited by Brian_MS_MVP on Wednesday, May 28, 2003 at 13:33. |
| #6 By 3339 (65.198.47.10) at 5/28/2003 1:58:47 PM |
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Red, unlike you I interpet "dumping" as an economic and legal term that is defined more exclusively than simply lowering the price or offering a product for free.
Live with your own perception of what I think and argue with yourself all you want--you, soda, and many other people simply have a retarded conception of dumping and I'm not getting involved. I am always happy when MS lowers prices--I am only concerned about their pricing strategies when it is selective, discriminatory, targeted at particular competition, etc... "If the consumer demand shows they won't pay for the product, and decide to go with the competition, then MS will lower the prices to regain lost market." Brian, I believe that's exactly what has happened over the past year or so. But, hey, you've got a brilliant strategy there. |
| #7 By 37 (66.82.20.150) at 5/28/2003 2:01:24 PM |
| Thanks SodaJerk, I appreciate it. Some day you might have an original thought, and we might be around to witness it. |
| #8 By 415 (199.8.71.121) at 5/28/2003 2:06:12 PM |
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Lowering the price of Office is kind of a must right now, if only because of the slow economy. I don't see many people running out to Best Buy to drop $450 for Office XP Standard, or $229 for the upgrade version. Not that many people do so anyhow...
Personally, I don't know anyone (other than myself) who actually EVER purchased a copy of MS Office. They have either pirated a corporate licensed copy or a University distributed (Campus Agreement) version. I realize that I'm only one person, and I may only be able to account for only about 30 people, but the averages have some validity... ... and I'm not just talking about 30 computer geeks here, but a very wide variety of people, thus the law of averages. Honestly, I think the reason why Office is so popular is because of the purchases of small/medium business and education, and the piracy that has ensued because of that. People (consumers) just don't run out to buy a retail version of Office. Regardless of how useful, because of the high price, it's just not that high on the priority list of computer related purchases. |
| #9 By 61 (24.92.223.112) at 5/28/2003 2:13:22 PM |
| Brian, they are probably lowering the prices because they have found that consumer demand has dropped due to free alternatives. |
| #10 By 3339 (65.198.47.10) at 5/28/2003 2:14:39 PM |
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"Some day you might have an original thought, and we might be around to witness it."
What's this pathetic little beef you have with me, dude? Have whatever thoughts you want--I think most people seethings differently. I'm pretty sure I'm one of the more unique and original members of this petty little community. |
| #11 By 37 (66.82.20.150) at 5/28/2003 2:31:57 PM |
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One of the main reasons for lowering the Office prices also include the pending release of Office System 2003. As it gets even closer, the prices of Office XP will seem even more obtainable due to the Technology Guarantees that Microsoft and OEM's put forth. First reduce the price of Office XP so they they sell their current stock, then encourage users to buy the current Office XP stock that remains so that they can offer them either a free upgrade to the Office System 2003 product release (or a trivial amount, such as $15.00).
Secondly, more than likely, this drop is due to the economy. I believe that the wide distribution of the Student and Teacher/Academic editions of Office made available at retail stores was partly an answer to the new competing Office Suites as well as furthering their market penetration even more. |
| #12 By 37 (66.82.20.150) at 5/28/2003 2:35:33 PM |
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SodaJerk,
You might want to get over yourself SodaJerk. It's you that has responded to my posting originally, not I. So, what is YOUR petty little beef with me is more like it. IronCladLou, I know of AT LEAST 40+ people of all ranges that have PAID for their copies of Office. Not to mention, my sister works at Best Buy here in Madison WI and she sells Office Retail boxes every day, all day. Businesses, consumers, students, teachers, etc. Not sure what point you were making. There are more honest people out there than dishonest. At least I would hope their are more honest people! |
| #13 By 37 (66.82.20.150) at 5/28/2003 2:38:32 PM |
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sphchecker,
Office System 2003 in the Small Business Edition will be available in Retail this year. This contains the following: Office 2003 Small Business: Outlook 2003 Business Contact Manager Excel 2003 PowerPoint 2003 Publisher 2003 Word 2003 |
| #14 By 3339 (65.198.47.10) at 5/28/2003 3:05:52 PM |
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JWM, you got me--maybe I gave a little nudge. ;-)
But you'll note that there was a point--the same as CPU's: they already are feeling the pressure he describes because the price is already too high. So I see know fault in making fun of someone who is simply observing the reality of the situation but sees it as an opportunity to do just the opposite. So yes, maybe a little back handed but I see my response as exactly the type that should be made. Provoke debate, make a point, maybe raise some cackles to get discussion. And besides--even if one interprets my post as a dig, it was a dig directed at his theory, not him personally. His dig was directly aimed at me personally. But anyway, let's get back on topic. The price drops are good. They are a response to pressures that have been on MS for a year now. This is not inconsistent with my views, they are my long held views. And "dumping" is a whole 'nother issue. |
| #15 By 135 (209.180.28.6) at 5/28/2003 3:06:11 PM |
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I think it is fascinating that Jerky Boy took the opportunity to attack me for something I didn't say. That strengthens my perception of his credibility.
CPUGuy - I suspect they are lowering prices because they've found consumer demand has dropped for upgrades. That is people with Office 2000 aren't upgrading. Good, let them lower prices, I'm all for that! |
| #16 By 135 (209.180.28.6) at 5/28/2003 3:10:15 PM |
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jerkyboy - "This is not inconsistent with my views, "
I will point out again that the only thing ever consistent with jerkyboy's views is that they are anti-Microsoft. No level of logical argument will ever persuade him otherwise. |
| #17 By 37 (66.82.20.150) at 5/28/2003 3:13:11 PM |
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I agree sodablue. This "person's" goal is to troll..and they make it quite obvious.
As for the lowering of prices, I too wish the prices were at LEAST half of what they are. But I wish that when my wife traded in her 2000 GrandPrix for a 2003 GrandPrix that we would only have to pay an upgrade price...maybe half ;-) I am really excited to find out if Office 2003 offers any sort of reduced pricing. |
| #18 By 9589 (68.17.52.2) at 5/28/2003 3:33:20 PM |
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A typical enterprise is paying around the same price for Office as Microsoft is charging for the their education version. However, a typical agreement allows the enterprise to use whatever version they care to; for example, Office 2000, Office XP or Office 2003 when it becomes available. This flexibility is necessary because it often takes a multistate/multinational enterprise several years to upgrade their workstations. Invariably, an upgrade of equipment and operating system is concurrent with the Office upgrade.
Nevertheless, this annoucement really only affects the retail customer. Microsoft offers several licensing programs for small to large enterprises with equally flexible payment plans. I know of no business that buys any Microsoft products at the retail price level. If the lower price points help sell more of this product in the retail channel, great! By the way, beside being in IT, I have been a Microsoft stockholder since 1987. They've been a terrific company to own stock in! |
| #19 By 61 (24.92.223.112) at 5/28/2003 3:36:32 PM |
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JWM, compatibility has nothing to do with it.
Lowering the price will indeed increase demand (well, they are certainly hoping so, anyway) and will give Office a bit of a sharper edge on the price side of competing (if that made any sense at all as it came out). |
| #20 By 3653 (63.162.177.143) at 5/28/2003 4:48:52 PM |
| Student/Teacher versions are selling like hotcakes. Has anyone seen the list of top 10 software packages sold over the past month? |
| #21 By 3339 (65.198.47.10) at 5/28/2003 4:51:25 PM |
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oh, boy, this is what I have to contend with...
soda, I did not attack you. I attributed the notion that lowering price or offering products for free is equivalent to dumping to you. This notion I call retarded. Are you disputing that you described the free pricetag of linux as dumping? |
| #22 By 3339 (65.198.47.10) at 5/28/2003 5:26:16 PM |
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"The US should start investigating on whether Linux exists because of illegal dumping by foreign companies."
"Linux vendors dump their product on the market at below cost because it is the only way for them to gain any marketshare. Microsoft is having to respond to this product dumping by lowering the price of their products." "I am only saying that Linux vendors are competing by illegal means if we are to believe the supposition that Microsoft is competing by illegal means through the same process of lowering prices." This is the view--however you want to interpret or re-interpret or restate it--this view that I considered retarded, soda. Since I am quoting you, I see nothing wrong in attributing this position to you. I don't see how this is an attack on you. It was my conjecture that linux is COMPLETELY different--it is always available for free, it is not the dominant marketshare holder, it is not charging lower prices selectively and discriminatorily to impinge competition, etc... These are factors which could contribute to a correct application of the term "dumping." You tried to create a dumbified definition of both "competition" and "dumping" that I continually questioned you on, but the best you could do to show these two very different behaviors to be the same was to state : it's competition. Without recognizing the numerous market forces and conditions that do relate to these economic and legal terms: jerk: "MS is being accused of drastically reducing prices only under the specific circumstance where they know they aren't getting the sale for the express reason of preventing the adoption of a competitive product. " ... while ... "Linux vendors provide a product for free. They try to make a profit through packaging and services. They do not selectively provide their products for free when they are getting beaten." soda: "It is called competition." jerk: "How does that compare at all? " soda: "It is also called competition." In fact, here is a quote from me from that discussion which shows my opinion on this issue: "What about my stance says to you that MS can never lower their prices. I'd be happy if they did: uniformly." |
| #23 By 135 (209.180.28.6) at 5/28/2003 5:33:54 PM |
| jerkyboy - Dumping is defined by the dictionary as offering a product below the cost to produce. It would be retarded to claim otherwise. |
| #24 By 135 (209.180.28.6) at 5/28/2003 5:37:01 PM |
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"it is not charging lower prices selectively and discriminatorily to impinge competition"
Uhh, yes it is, jerky boy. The whole reason why open source software sells for Zero Cost is to destroy competition. Once all competition has been destroyed, then the open source vendors will raise prices. |
| #25 By 3339 (65.198.47.10) at 5/28/2003 5:50:36 PM |
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Please, soda, please...
please answer all or any of these questions: how the hell is it selective or discriminatory when EVERYONE can get it for free? Who doesn't get to acquire Linux for free? "Once all competition has been destroyed, then the open source vendors will raise prices." Where have you been, buddy? Whether or not an OS vendor is charging for services or a package, they still are REQUIRED to provide it for free. Can you explain how Linux is going to BECOME proprietary all of a sudden? What the HELL is "all competition"? Don't Linux vendors compete with each other? Do you actually believe that nothing will exist some day but Linux? Or are you just falling off the insane presumption cliff again? |
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