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
Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with technology, media and marketing. Named LinkedIn’s “Top Voice in Technology,” he covers tech and business for Good Day New York, is a regular commentator on CNN and writes a popular daily business blog. He's a bestselling author, and the creator of the popular, free online course, Generative AI for Execs. Follow @shellypalmer or visit shellypalmer.com.