Microsoft Eyes New Business Models for Office Applications

Posted by: clickry on: April 26, 2008

• In: applications | Business | eyes | Microsoft | Models | new | Office
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Subscription and ad-supported versions of Office applications in the cards

For many computer users around the world when they think of typing a letter or a research paper, the first thing they think of is Word from Microsoft’s Office suite. The problem for buyers of new computers is that the application typically doesn’t come with a new computer and Office costs in the area of $400 for some versions.

In light of the high price for software that many people simply don’t utilize completely, there are a number of open source alternatives taking some of Microsoft’s thunder away because they are free – applications like OpenOffice and Google Docs for example. Google Docs is especially becoming more interesting to users looking for a Microsoft Office alternative thanks to its recently added offline functionality.

To try and gain back some of what it perceives to be market loss, Microsoft is said to be looking at new business models for its Office applications. According to PC World, Microsoft is considering two new access methods for Office applications including a subscription based model and a free ad-supported version of Microsoft Works.

Exactly what the pricing would be on a subscription version of Microsoft Office is unknown, but as PC World points out it would have to be under $33 per month to remain competitive with the straight purchase option. Many would have a hard time stomaching a subscription-based model.

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