Microsoft relies on Office piracy as a strange means of price discrimination. The product requires network effects to maintain its near-monopoly position in the corporate world, and having a significant portion of people in "document sharing" networks say, "I don't have Office" is a threat. So, what Microsoft's quietly made decision says to me is that they are worried that a sufficiently large enough portion of computer users were both unwilling to pay for Office and unwilling to bother pirating it.
On Black Friday, many online retailers were running specials on a Home/Student Office "Family Pack" -- three legal installs for $100. This is a midpoint between the corporate price point and free. Perhaps an attempt to introduce another segment? I recall the availability of home/student editions in the past, but the price points were always much higher.
There is one important network effect they seem to be neglecting - the "big ball of mud" network effect of having hundreds of Excel spreadsheets all linked into each other, forming critical parts of the finance infrastructure of megacorps. This kind of end-user-computing nightmare is so hard to migrate away from that most companies can't even conceive how to do it.
However, regulatory schemes like SOX in the USA and Solvency II and Basel III in Europe, are forcing the issue. Big banks and insurers won't be allowed to carry on running critical finance operations on such a fragile stack, so there are currently huge migrations away from Excel happening all across the financial services industry. Software like SAS and Business Objects seem to be the anti-Excels of choice.
There will obviously still be Excel on the desktop, used for ad-hoc data manipulation and visualization, which is what it is actually good for, but this type of usage is much easier to replace with something like OpenOffice.
+1 Perhaps it's their way of dealing with the fact that Office is just too expensive for many people, without acknowledging that to the public by dropping the price.
People who don't use Office for business would struggle to justify $209 AUD (RRP for Home and Student edition) to themselves just to write the occasional letter - even if they're not aware of Google Docs or other alternatives.
Our corporate parent has some sort of deal with Microsoft that lets you purchase a legit copy for $10 (total with shipping and sales tax is about $27 if you want the DVD delivered). The folks at the office (who have taken advantage of it) mention that they've also been allowed the 3-machine activation per key.
I think Microsoft is attempting to target students more aggressively, perhaps because of the appearance of other cheap/free options on the market in recent years. Just last year Office 2007 was on sale to students at $60.
I'm a fan of MS Word, I really am. These days though, I find that, as an amateur writer, I prefer simpler tools - markdown or google docs. I think this is a slow trend they are (or should be) worried about.
For home users, gmail thoroughly beats Outlook.
Excel is a different beast. I don't have much experience with it, but I've seen it used widely at various places of work (medical and financial). I'd say Excel is now their strongest product when it comes to maintaining a stranglehold.
When you consider the price, advances in google docs, gmail and and OpenOffice, I'm not sure Office is really a good value for most folk. They think they need it - that's a dangerous position to be in - selling a product because people think they need it, rather than actually needing it.
A lot of commenters seem confused about this: you still have to validate Office to get it to work, or pirate it to circumvent the check. The change is that Microsoft will let you download Office add-ons without verifying that said validation occurred, so pirate versions can now access the downloads.
If you run a print/copy shop or need Office for precise in-company document compatibility (or addins), you will want MS Office and you will easily afford a license or two.
As for everyone else, OpenOffice has 99% of the features, so it's not even worth the trouble of pirating it.
Excel is the tool of choice for non techies who need "database like" functionality but the word database scares the crap out of them. Large companies wrap multi million dollar businesses around Excel, and I think there will always be a market for an app like this.
I only recently began using Office 2010 at my office and feel like this is what office 2003(or if Im feeling generous, 2007) should have been. Outlook is an anachronism as far as Im concerned- even connected to exchange. There are so many modal features about it still that are infuriating, but its getting to an almost gmail usability level. If gmail integrated calendaring as well as outlook I would forward all my work email to a gmail address and never touch outlook.
MsWord stil is hands down much better than any free equivalent I have tried, but I only need this app ~5 - 10 times per year.
I wish they had an "Office for people who really dont need office that much" version that was on some sort of azure/pay for need basis(where the cost was minimal and paying wasn't) because that is what I need. I dont want to have a few GB of hardly used real estate on my hard disk for when I need to update a resume.
Microsoft releasing actual legitimate open source code (http://www.microsoft.com/opensource/) , and relaxing restrictions on "piracy." Next thing you know, Windows 9 will be based on Linux.
I'm kind of surprised by this. If they had just shut down the bit that forces you to validate, but left a way for you to validate your copy, that would make more sense to me.
I mean, some people might genuinely want to know for sure.
Of course, it's possible that they shut this down while they put up something even more bothersome.
[+] [-] ShabbyDoo|15 years ago|reply
On Black Friday, many online retailers were running specials on a Home/Student Office "Family Pack" -- three legal installs for $100. This is a midpoint between the corporate price point and free. Perhaps an attempt to introduce another segment? I recall the availability of home/student editions in the past, but the price points were always much higher.
[+] [-] jl6|15 years ago|reply
However, regulatory schemes like SOX in the USA and Solvency II and Basel III in Europe, are forcing the issue. Big banks and insurers won't be allowed to carry on running critical finance operations on such a fragile stack, so there are currently huge migrations away from Excel happening all across the financial services industry. Software like SAS and Business Objects seem to be the anti-Excels of choice.
There will obviously still be Excel on the desktop, used for ad-hoc data manipulation and visualization, which is what it is actually good for, but this type of usage is much easier to replace with something like OpenOffice.
[+] [-] evgeny0|15 years ago|reply
People who don't use Office for business would struggle to justify $209 AUD (RRP for Home and Student edition) to themselves just to write the occasional letter - even if they're not aware of Google Docs or other alternatives.
[+] [-] Tangurena|15 years ago|reply
[+] [-] sliverstorm|15 years ago|reply
[+] [-] latch|15 years ago|reply
For home users, gmail thoroughly beats Outlook.
Excel is a different beast. I don't have much experience with it, but I've seen it used widely at various places of work (medical and financial). I'd say Excel is now their strongest product when it comes to maintaining a stranglehold.
When you consider the price, advances in google docs, gmail and and OpenOffice, I'm not sure Office is really a good value for most folk. They think they need it - that's a dangerous position to be in - selling a product because people think they need it, rather than actually needing it.
[+] [-] veb|15 years ago|reply
In my opinion, Word is the best app ever to come from Microsoft.
[+] [-] danshapiro|15 years ago|reply
[+] [-] iwwr|15 years ago|reply
As for everyone else, OpenOffice has 99% of the features, so it's not even worth the trouble of pirating it.
[+] [-] omh|15 years ago|reply
But pirating it just got a little bit easier, so Microsoft have shifted the balance a little away from OpenOffice.
[+] [-] S_A_P|15 years ago|reply
I only recently began using Office 2010 at my office and feel like this is what office 2003(or if Im feeling generous, 2007) should have been. Outlook is an anachronism as far as Im concerned- even connected to exchange. There are so many modal features about it still that are infuriating, but its getting to an almost gmail usability level. If gmail integrated calendaring as well as outlook I would forward all my work email to a gmail address and never touch outlook.
MsWord stil is hands down much better than any free equivalent I have tried, but I only need this app ~5 - 10 times per year.
I wish they had an "Office for people who really dont need office that much" version that was on some sort of azure/pay for need basis(where the cost was minimal and paying wasn't) because that is what I need. I dont want to have a few GB of hardly used real estate on my hard disk for when I need to update a resume.
[+] [-] Ingaz|15 years ago|reply
In fact I use Excel only as client for MS Analysis Services. It's my tool of choice. Not flawless, but I can't find something better.
[+] [-] compay|15 years ago|reply
[+] [-] sliverstorm|15 years ago|reply
I don't think I'd stop partying & celebrating for at least a week. Non-stop.
That is my personal private dream- that one day, Windows will have a true Unix core like OSX.
[+] [-] wccrawford|15 years ago|reply
I mean, some people might genuinely want to know for sure.
Of course, it's possible that they shut this down while they put up something even more bothersome.
[+] [-] jcromartie|15 years ago|reply
Are these the same people that want to go through TSA screenings just to make sure they aren't dangerous?
[+] [-] andreyf|15 years ago|reply