

- #MICROSOFT OFFICE SUBSCRIPTION UPDATE#
- #MICROSOFT OFFICE SUBSCRIPTION PRO#
- #MICROSOFT OFFICE SUBSCRIPTION SOFTWARE#
- #MICROSOFT OFFICE SUBSCRIPTION WINDOWS#
It's no surprise, then, that enterprises are questioning the value of Software Assurance. If you renew SA, you're not going to get anything for it, or not anything that you're going to deploy in the next five, six years."ĭropping SA from an enterprise agreement can cut between 25% and 50% from an Office bill, DeGroot said, and save big businesses millions. That means you're buying not Office 2013 with SA, but Office 2016 or even Office 2019. "But say you're in the middle of an Office 2010 migration. "If you have Software Assurance, you're now entitled to Office 2013," DeGroot noted. Instead, enterprises take years to roll out an edition, skipping one or even two of the upcoming versions before again repeating the process.īy not deploying those interim editions, companies that pay for SA are spending money on something they won't use, said DeGroot. The problem with Software Assurance (SA) is that while Microsoft upgrades Office every three years, few businesses follow suit. "What they're facing is a lot of Office revenue potentially dropping off the books as customers stick with their perpetual licenses but stop further payments to Software Assurance."įirms regularly pay for "Software Assurance," an annuity-like maintenance agreement that gives customers the right to future upgrades in return for annual payments spread over three-year terms. "Microsoft wants to shift people to subscriptions because you cannot stop paying for a subscription," said Paul DeGroot, principal at Pica Communications, a consulting firm that specializes in deciphering Microsoft's licensing practices. Consumer and education subscriptions won't be affected either.The launch of new and revised Office 365 software-by-subscription plans for businesses shows that Microsoft realizes its current licensing revenue is threatened by cost-cutting customers, an analyst said yesterday. The company won't be adjusting the cost of certain Office subscriptions, including Microsoft 365 E5 ($57 per user per month), Microsoft 365 F1 ($2.25) and Microsoft 365 F3 ($8), a spokesperson told CNBC in an email.
#MICROSOFT OFFICE SUBSCRIPTION PRO#
Office 365 E5 includes features such as cloud-based phones, a Pro version of the Power BI data-visualization software and Teams data-loss prevention. The E5 tier represents 8% of the Office 365 installed base among commercial customers, chief financial officer Amy Hood told analysts in July. The company is making progress there, too, even leaving aside the coming price increases. Increasing the amount of money coming from each Office subscriber is the other way Microsoft expands its Office cloud business.

That has helped widen the base of Office users, and now there are over 300 million commercial Office 365 paid seats, Spataro wrote.

#MICROSOFT OFFICE SUBSCRIPTION WINDOWS#
The premium Office 365 E5 tier will cost $38, up from $35Ĭreating Microsoft 365 with Windows has helped Microsoft sell Office subscriptions for people who aren't necessarily in front of PCs all day because they hold front-line positions, such as cashiers.Office 365 E3 will rise to $23 from $20.Office 365 E1 will be $10 instead of $8.(Unlike the other products on this list, it includes a version of Windows.) The Microsoft 365 E3 variant will be $36, compared with $32 today.Microsoft 365 Business Premium will move to $22 from $20.Microsoft 365 Business Basic will go up to $6 per user per month from $5.Here's a rundown of the coming changes to the monthly prices: The changes go into effect on March 1, 2022. The bundle has expanded to include the Teams communication app, the Whiteboard collaboration app and Power Platform application-development tools for non-developers, among other assets, Spataro wrote.
#MICROSOFT OFFICE SUBSCRIPTION UPDATE#
This marks "the first substantive pricing update since we launched Office 365 a decade ago," Microsoft 365 corporate vice president Jared Spataro wrote in a blog post.
