There are no DVDs, which is another sign the company seeks to dramatically change how consumers and small businesses consume and pay for the suite. However, Microsoft Store prices are for downloads, which, by the way, is in most markets the only way to get Office 2013. Home and Business: $219. $199.įrom one perspective, the new versions cost about 10 percent to 16 percent more, which says much about what Microsoft execs think of the newer suite's value but also can be interpreted as intentional barrier to sales.The operation no longer offers Office 2010, but the prices below were valid before today: Let's start with the traditional product - how 2013 versions cost compared to their predecessor - direct from Microsoft Store. If anything, Office 2013 pricing discourages suite sales.
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Marketing emphasis around Office 365 and pricing for subscriptions and suite reveal how Ballmer hopes to get the Holy Grail. Microsoft pushes real subscriptions instead. There is no volume-licensing plan for consumers, or small businesses. Businesses bought or renewed licensing contracts. By comparison, bookings rose 18 percent, to "near historical high renewal rates for Office", Chris Suh, general manager of Microsoft investment relations, said during last week's earnings call. During calendar fourth quarter (fiscal 2013 second for Microsoft), Business division consumer revenue declined 2 percent year over year, which is a consistent trend. There is the impact of slowing PC sales, too. About 60 percent of Office revenue comes from annuity contracts, which is money in the bank and commitment that discourages switching to other products - at least through the contract period.īusinesses are on the hook, but consumers swim free, and that's not good for Office, which faces increasing competition from services like Google Apps. They pay cost per license upfront plus this additional fee annually.
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Today, most organizations either pay full price or give Microsoft 29 percent of Office's full price over two or three years.
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Software Assurance raised the cost of upgrades by as much as 107 percent, according to Gartner. In May 2001, Microsoft announced a radically new licensing method that removed off-the-shelf upgrades and pushed businesses to subscription-like model.
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Ballmer started the subscription Grail quest by putting profits before customers, and pissing off business and tech decision-makers in the process.