Microsoft as a Subscription?

We will have to wait and see what all this really means....

On the cloud subscription model: "We're well on our way to making that transition in terms of moving from pure licenses to long-term contracts and as well as subscription business model," Nadella told analysts. But he didn't share anything new about when, whether and how Microsoft will move to a subscription model for Windows, as some are expecting.

Source

Also,,,,

WZor also claims that Microsoft is tinkering with the business model for Windows and may make some kind of base-level version of Windows available for free for everyone, but require a subscription to "turn on" the full set of capabilities and features, similar to the way Microsoft requires Office on iPad users to have an Office 365 subscription to do more than just the simplest of tasks with the free version. I haven't heard anything specifically about this from my contacts (yet).

Source

For the record, I voted maybe.

 

[HippsieGypsie]

Did you last two read any of the thread?

I love how everyone AUTOMATICALLY assumes it will be Windows as a cloud OS. It is not, it'll be Windows that requires a yearly or biyearly renewal with the possibility of allowing OEMs to offer add-on services to differentiate from competitors, like 100 gigs of OneDrive storage included in the price versus a different OEM not offering it.

Office 365 does the same thing, it just requires an annual renewal of licensing to fully use features. You can still use it to read documents if it's expired, but can't edit.

ALL anti-virus software does this. You pay for one year and one year only. If you don't renew it, you chance getting STDs.

 

[Superfly]

This is just a different approach to what is currently happening - where your PC "phones home" certain data ...the only difference being the activation interval will be evaluated when sent to their servers as well, in order to verify legitimacy... ie. nothing new really.. apart from upfront payment vs installments..

 

[pparks1]

Depends. Office 365 seems to be quite successful. So there must be some attractive features.

Let's see,

• It's a $400 piece of software for 1 PC/ 1 User: Amazon.com: Microsoft Office Professional 2013 (1PC/1User) [Download]: Software
• You get 5 copies that you can install
• You can share your subscription with 4 other people (if you want)
• It's only $99 a year.

Don't forget that prior to the subscription model from Microsoft you could get a 3 user copy of Home and Student 2010 for about the same or less money than it now costs for the single user/device version of 2013. That increase in price for the purchased version has made the subscription appear more attractive.

I am sure the retail cost of Windows would likewise go up to make a subscription appear attractive.

Yes, there was a 3 pack of Office 2010 for home and student. I think it was around $179 if memory serves. Remember, home and student has word, excel and PowerPoint only. You have to move to home and business to get Outlook, which is more expensive. And office 365 also includes, outlook, publisher and access...so hence reason it is $400. Office pro has always been about that price.

And do not forget as a student, you can get office 365 for $79 for 4 years. That's way cheaper than it ever was.

 

[pparks1]

@jimbo...you would have the VAT added as well if you bought the licence, so that should be a wash.

I think lots of people who used to pirate Photoshop, who now find paying for it via a subscription to be not worth the cash are checking out the solid alternatives like The Gimp.

The home use program is usually $10 our $20 for Office and your company has to maintain software assurance on their enterprise agreement. That was costing our company of 250 people nearly $250,000 per year for that software assurance benefit which allowed us to distribute home use office.

 

[pparks1]

It's funny that some want to fight subscriptions, when some found TechNet subscriptions to be a great way to obtain tons of MS software for a very cheap price.

With OS as a service, if it was something like 15 installs to whatever device you wanted for $49 a year, I could see it having some potential. I'm sure stand alone licenses well exist for those who want to run something like XP for a decade. Of course, they well be priced less attractively.

 

[Wenda]

I voted No.

If it happens, I'll stay on one of my current versions of Windows (currently runningXP, Vista, 7 and 8.1) and/or one of my versions of Linux (Mint Mate is nice).

I WILL NOT go subscription under any circumstances, if that means no more MS then so be it.


Wenda.

 

[HippsieGypsie]

It's funny that some want to fight subscriptions, when some found TechNet subscriptions to be a great way to obtain tons of MS software for a very cheap price.

With OS as a service, if it was something like 15 installs to whatever device you wanted for $49 a year, I could see it having some potential. I'm sure stand alone licenses well exist for those who want to run something like XP for a decade. Of course, they well be priced less attractively.

Good point on Technet. I agree. I'm quite sure they'll keep offering stand alone just as they do with Office.

 

[Superfly]

I voted No.

If it happens, I'll stay on one of my current versions of Windows (currently runningXP, Vista, 7 and 8.1) and/or one of my versions of Linux (Mint Mate is nice).

I WILL NOT go subscription under any circumstances, if that means no more MS then so be it.


Wenda.

Ditto...

 

[SIW2]

Of course. Saw it coming a long time ago. Complete change of business model. Removal of the concept of ownership.

People pay fifty bucks a month to use their phone, shouldn't be too difficult to eke that and more out of them for the os and "services".

Up to now, MS would get perhaps $60 license fee per laptop. The punter can use that forever. Typically they might replace it after 36-48 months.

Not hard to see how MS could reap 20-30 times as much on subscription, though it more likely the "services" that will be rented, it amounts to the same thing.

I agree. Subscription is only a way to squeeze more money out of you. Companies don't do what's good for YOU, they do what's good for THEM.

 

[SIW2]

It won't be too long before we are all just terminals. You might have a credit card size device, or a chip behind your ear, or a suppository up your rear. It doesn't matter what the devices are. One of the giant Tech corps will have complete control.

What is happening now are little steps along the way. You can't expect MS to sit on the side lines, they have to be in there.

 

[pparks1]

But let's look at how Microsoft reap's the benefits here.

In a perfect world, without piracy, people would be spending

1. $139 per copy for Office 2013 Home and Student: Amazon.com: Microsoft Office Home and Student 2013 (1PC/1User) [Download]: Software
2. $219 per copy for Office 2013 Home and Business if they needed Outlook: Amazon.com: Microsoft Office Home and Business 2013 (1PC/1User) [Download]: Software
3. $399 per copy for Office 2013 Professional if they need Outlook, Access and Publisher. http://www.amazon.com/Microsoft-Off...1703&sr=1-1&keywords=office+2013+professional

So, instead, Microsoft says, OK with an Office 365 subscription, you get 5 installs of Office 2013 Pro ($399 per copy retail), and you can share these with your friends and family if you like. This will only cost you $99 per year for the 5 installs. So, $20 per copy/year. Now, had MS sold 5 copies at retails they stood to make $399 x 5 = $1,995. Instead, at $99 a year, it would take them 20.15 years to get that revenue.

But what they do get, is subscriptions from those who might have been set on pirating 2 copies of Office 2013 Professional (as they weren't going to pay $399 x 2). Instead, these people might buy the subscription for $99, then keep 2 copies for themselves and sell off the remaining installs to friends and family for $20 a pop. So, instead of paying $800 for 2 copies of Office Pro, they spend out of pocket about $40 a year. Takes em 20 years to make up that difference.

The subscription gets you 5 installs, it gets you web versions, it's gets you more OneDrive space, it gets you Skype minutes, it gets you a portal where you can share and control your shared installs. It keeps you on the latest versions of the software, etc. All for $99 a year. Seems like an absolute bargain to me, espeically with as much as you guys seem to bag on Open Office/LibreOffice for not being anywhere near as good as Microsoft office.

And don't forgot, if you want 1 copy to have and hold for the next 10 years and you "only need word and excel", you can still buy the $139 straight up software license and do it that way. In that case, the subscription makes no sense, as you need very limited products, and at $99 per year, you would exceed the cost in just over a year. Of course, you could buy Office 365 for $99 a year, and then install 1 copy with more features than you would have had before, and you could sell your other 4 copies to friends/family for $80 a year and then your out of pocket would be $20 a year. At that rate, you would still be ahead for 7 years compared to buying a copy for $139.

 

[Superfly]

Does the EULA allow "sub-letting" your subscription?

 

[SIW2]

Which people?

I don't think I know a single person irl who has ever bought a copy of Office.

Edit - correction - I do know one person who has.

 

[alkaufmann]

When I set up computer systems for some of my friends MS security becomes a real pain. You need to set up Microsoft account to log on and that requires you answer a telephone that provides you with a code to enter. Unfortunately I don't have that telephone so I need to set myself up on their machine. I am not sure what will happen when I delete myself.

Subscribing to MS Office for another person is a real pain too, I don't want it to auto-renew on my credit card. MS recommends for me to pay for the year and then immediately unsubscribe. Their subscription will be good until it expires in a year. I will try that soon but I think their subscription system may have problems with one user paying for the subscription of another user. I may have to log on as the other owner to unsubscribe!

Yes, I could install the trial and let them figure out how to subscribe and pay but the people I am helping need a lot of help!

 

[SIW2]

but the people I am helping need a lot of help

Why would they want a copy of Office? What do they use it for?

 

[alkaufmann]

Outlook for e-mail, Word for opening MS documents, excel for spreadsheets, etc. I realize they don't need them and can use programs that are free, the problem is me, when they ask for my help and that happens often, I don't want to have to learn all those other programs.

Same for the operating system. Some of these people I am helping are seniors and they want the cheapest system possible but they seem to choke when I give them Ubuntu, Firefox, Open Office and Thunderbird. :-(

 

[jimbo45]

Which people?

I don't think I know a single person irl who has ever bought a copy of Office.

Edit - correction - I do know one person who has.

Hi there.

That's what Torrents are for !!!!!!!

Seriously you USED to be able to get Office 2007 Enterprise as a Use at Home feature from a lot of workplaces / colleges for just the price of the DVD media (around 5 USD I think)- although you were meant to stop using it if you changed jobs -- few did though.

Office 2010 Student and Teacher edition worked on 3 computers and was around 80 - 90 USD -- good value - probably still available if you hunt for it -- hasn't got ACCESS but that's the most SORRY excuse for a piece of Software that I've ever seen that actually has the gall to call itself a Database system -- always breaks and no real multi-user function -- rest of Office though particularly EXCEL is brilliant.

Cheers
jimbo

 

[Coke Robot]

It's funny that some want to fight subscriptions, when some found TechNet subscriptions to be a great way to obtain tons of MS software for a very cheap price.

With OS as a service, if it was something like 15 installs to whatever device you wanted for $49 a year, I could see it having some potential. I'm sure stand alone licenses well exist for those who want to run something like XP for a decade. Of course, they well be priced less attractively.

Seriously.

From what I'm gathering so far, it's mostly that people don't want to front the money on a yearly basis, even though it will be a FRACTION of a perpetual license up front for continuous updates and support and versions.

Either that, or they think they actually OWN the software. We may need to understand what the core concept of running legitimate Windows entails...

"How can I use the software?

We do not sell our software or your copy of it – we only license it. Under our license, we grant you the right to install and run that one copy on one computer (the licensed computer), for use by one person at a time, but only if you comply with all the terms of this agreement. Typically, this means you can install one copy of the software on a personal computer and then you can use the software on that computer. The software is not licensed to be used as server software or for commercial hosting - so you may not make the software available for simultaneous use by multiple users over a network. For more information on multiple user scenarios and virtualization, see the Additional Terms."

Meaning, you DO NOT ACTUALLY OWN THE SOFTWARE. You purchase a license to run a single copy of Windows on a single PC. If the reverse was the case, IBM would own the rights of Microsoft DOS, Windows, Office, etc.

Just because you have an install CD or DVD of Microsoft software like Windows doesn't mean you can go to Redmond and run around say you own a piece of Microsoft and therefore can make demands on what they can or cannot do; that is only if you own a piece of actual Microsoft stock.

Furthermore, there probably will be a time where ancient software, even though with a perpetual license, can't be activated for use. If Microsoft wanted to go to the extent of this, they would have shut down their activation servers for xp so no further installs can be activated. Of course, that's not feasible but a good example I can think of is of developmental builds of Windows. Longhorn in particular, certain builds have be to installed where the machine's time is around April of 2004 to even install it. You can keep a piece of software for a decade or more, but chances are that there might not be a backend server to handle activations of such. Same happens quite often for online multiplayer games.

 

[Coke Robot]

Does the EULA allow "sub-letting" your subscription?

Technically speaking, yes. The main Office 365 portal allows you to control the five different PCs that can run that subscription. So if one person isn't coughing up their share of 20 dollars, you can cut them off and give it to someone else.

 

[Coke Robot]

Which people?

I don't think I know a single person irl who has ever bought a copy of Office.

Edit - correction - I do know one person who has.

You must hang around some unscrupulous people....