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Office 365 Home Premium subs have passed 1M a little over 100 days after the productivity suite...

Office 365 Home Premium subs have passed 1M a little over 100 days after the productivity suite launched, claims Microsoft (MSFT). The launch of Home Premium, which goes for $100/year and gives up to 5 PCs access to both local and cloud versions of Office 2013, has been closely watched, given it represents Microsoft's strongest effort to get consumers to embrace Office subscriptions. Microsoft recently boasted Office 365 (also covers business subscriptions), aimed at staving off Google Apps and other low-cost cloud alternatives, is on a $1B/year run rate.
Comments (12)
  • Ruffdog
    , contributor
    Comments (1554) | Send Message
     
    MSFT is finally hitting on all cylinders!
    29 May 2013, 04:29 PM Reply Like
  • berylrb
    , contributor
    Comments (2205) | Send Message
     
    Let me see if I have this right $100/year for Office 2013? ... on the cloud or not how is that attractive?
    29 May 2013, 04:49 PM Reply Like
  • toraji
    , contributor
    Comments (787) | Send Message
     
    another great move from MS. I love having office over all my devices for such a low price
    29 May 2013, 05:27 PM Reply Like
  • outlawgator
    , contributor
    Comments (12) | Send Message
     
    No program I have used comes close to MS Word...
    29 May 2013, 05:28 PM Reply Like
  • xrugr
    , contributor
    Comments (53) | Send Message
     
    berylrb. I agree with your comment. At $49.95 per year it would be much more attractive. And at $29.95 per year it could be very attractive. $100 per year seems high, but it seems to be selling.
    29 May 2013, 05:28 PM Reply Like
  • berylrb
    , contributor
    Comments (2205) | Send Message
     
    Thank xrugr, maybe you can help me understand ...

     

    I can understand if you have 5 devices $20/device but still, why an annual subscription what do you get for that: Word, Excel, Powerpoint, Outlook, right?

     

    How often do they change? To answer my own question,
    1. access anywhere
    2. skydrive - sharing
    3. skydrive - storage

     

    But wait, I always always have my iPad and MBP with me everywhere I go, and use Dropbox for free. Storage is interesting, but why would I trust my only backup to the cloud, hence, a prudent person would should have a home/office backup. So what reason is left to pay an ANNUAL subscription? In my world, Office just is not updated that often to justify an annual expense. Am I missing something here?

     

    And yes, I am a power user, and road warrior, of Excel and MWord, however, I do prefer Keynote over Powerpoint, but I use both.
    29 May 2013, 10:34 PM Reply Like
  • rjgood
    , contributor
    Comments (233) | Send Message
     
    The $100 per year for home isn't as strong as an argument as the Pro edition. That does make good sense for businesses/governments. Home is a safe bet, and isn't that far off financially as the boxed copies of office (dollars per month difference max.)

     

    @berylrb, try out the MSFT ecosystem. All of my apps, XL docs, word docs, music, movies, games, are all permanently saved and licensed on the MSFT cloud. Now I get Office as the first perpetual subscription. Sounds good.

     

    So I lose my WP8 phone? Log in with my MSFT account, all of a sudden all of my apps auto download/install, office auto downloads/installs, all of my settings auto apply, my contacts download, my calendar downloads, my music streams and is available for download, my movies stream and are available for download.

     

    My sister called frantically that she upgraded her Lumia, and of course AT&T didn't ask her to type in her Microsoft account. So she had 0 contacts, 0 movies, etc.

     

    I said, "Go to your Windows 8 PC, click the People tile...see everybody?". She said yes, typed in her MSFT email...her phone 100% replicated from her old one.

     

    So you lose your laptop/tablet? Same thing. Log on and done.

     

    No 3rd parties. Just easy.
    29 May 2013, 10:51 PM Reply Like
  • berylrb
    , contributor
    Comments (2205) | Send Message
     
    Ah I see, but the MSoft website only talked about Office docs not music and games and ... Now it makes sense. It's like the original MobileMe for Mac users, $100/annual.

     

    However, When Apple started iCloud the subscription went away. Maybe MSoft will do the same once they get to say 500M subscriptions and a boat load of Office Pro users, whom I assume will pay more for more storage, then the economies of scale will justify a free subscription like Apple's iCloud.
    31 May 2013, 12:58 AM Reply Like
  • dman000000
    , contributor
    Comments (2) | Send Message
     
    berylrb and xrugr: The Office365 subscription provides Office local and cloud licenses for up to 5 PCs (or Macs!) so considering that a single license of Office2010 Home and Business (without Access) was priced at over $200 when it first came out the value prop is very good if you have several computers in the family. Not to mention the pricing on Macs. Plus the entry point is more palatable to a lot of folks versus buying for or upgrading several computers at once...

     

    GIven that Office remains the undisputed king of productivity software I think it is hard to make the case for someone to NOT subscribe to 365.
    30 May 2013, 08:40 AM Reply Like
  • berylrb
    , contributor
    Comments (2205) | Send Message
     
    @dman, true but again the update cycle isn't that rapid. Consider Office 2011, what I use on my Mac, I bought it in 2010 and there has not been any significant upgrade so my cost outlay, were the 365 available would have been $300 for 3 years vs $200 for a boxed Office, and I imagine I will get another 2 years out of my boxed Office until I am forced to upgrade for some cool feature in Excel, eh?
    31 May 2013, 01:02 AM Reply Like
  • dman000000
    , contributor
    Comments (2) | Send Message
     
    I cannot argue with your math. For you buying the standalone version for ~$200 is the right move without question. To me, the power of the Office365 pricing schema is what it means for the "average household". I look at it from two perspectives:
    1. If a household has 3 or more computers needing office then the subscription model just makes sense (per your math 3 licenses and above is a no-brainer).
    2. If a household has maybe just 1 or 2 computers but sees the outlay of >$200 (or >$400 for 2) every few years as difficult to swing from a budget standpoint, this also makes sense. A lot of households don't have a whole lot of disposable income so the idea of smoothing the expense to a more manageable annual amount is pretty compelling. It may not always make the most sense from a breakeven standpoint but not every thinks (or has the luxury financially to think) in those terms.

     

    One of the things that I find most compelling about the model is the license proliferation and what it means in terms of a defensive play against competition. By offering up to 5 licenses, I think we will see more installs of Office on "extra" computers in the household. If I were to buy a lower-end laptop for one of the kids, I would never pay $200+ for Office so there is risk that they would seek out other options for word processing and spreadsheets...like free versions of Google Docs (assuming there are still free versions). With 365, I am installing the full Office suite on my machine ,as well as on the family Mac, and on the old laptop that we use here and there, and on what I buy for my kids as they start getting into middle school. All told, this model will lead to a larger number of users across the Office platform than has ever previously existed, preventing probably millions of younger users from even trying out or adopting other solutions such as Google Docs.

     

    So I see 365 as a good model and a platform for growth. Individuals such as yourself will still by the standalone product and, per my logic, more and more households will subscribe to 365 as upgrade cycles come up thereby expanding the footprint of Office (and by extension with SkyDrive, the MSFT ecosystem). I believe this model will also serve to smooth MSFT revenue from the Office side of business, especially in years just before new releases, potentially creating stronger financial statements based on predictability.
    31 May 2013, 11:38 AM Reply Like
  • berylrb
    , contributor
    Comments (2205) | Send Message
     
    @dman, OK that's reasonable, you brought up one point that I did not consider, homes with mixed OSes - Windows and Mac.

     

    I have to check the website again, but you're suggesting that one $100 subscription gives up to 5 licenses regardless of the OS, that certainly ups the ante!
    31 May 2013, 02:30 PM Reply Like
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