The genial Mary Jo Foley published the key pricing statistics of Office 2013 this week, laying bare the revenue mechanisms that Microsoft intends to employ to wean its customers, big and small, off of software purchases, and acclimate them to paying for their productivity software on a recurring basis. What you once purchased, you will eventually rent. Microsoft is making this move as it transforms its software products that were once sold in boxes in stores the shape of boxes, into services. As you have already connected, this is part of the firm’s ‘devices and services’ push. A desktop application sold once is a static tool; a service rented on a recurring basis is a fluid solution. In short, Microsoft is moving its old-school products to new-school business models, and is currently in the period of transition. For this reason, the firm is selling both Office In A Box and Office: The Service for the time being.
About Shelly Palmer
Named one of LinkedIn’s Top 10 Voices in Technology, Shelly Palmer is CEO of The Palmer Group, a strategic advisory, technology solutions and business development practice focused at the nexus of media and marketing with a special emphasis on machine learning and data-driven decision-making. He is Fox 5 New York's on-air tech and digital media expert, writes a weekly column for AdAge, and is a regular commentator on CNBC and CNN. Follow @shellypalmer or visit shellypalmer.com or subscribe to our daily email http://ow.ly/WsHcb
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"Office 2013: What’s It Gonna Cost Ya?" by @ShellyPalmer
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