Skip Links

Network World

  • Social Web 
  • Email 
  • Close

Microsoft to sell Office 'value pack' for $70 per year

By Elizabeth Montalbano , IDG News Service , 07/02/2008

Microsoft has chosen the name "Equipt" for a forthcoming package of products that includes its Office suite, Internet security software and other services, and will sell it for an annual subscription fee of US$69.99.

Equipt, which was formerly known by its code name, Albany, includes Office Home and Student 2007, Windows Live OneCare, Office Live Workspaces, Windows Live Mail, Live Messenger and Live Photo. Microsoft plans to begin selling it in the U.S. on July 15 through Circuit City, with other outlets to follow. It will be offered in other countries at about the same time, though pricing elsewhere was not announced.

The name comes from the idea that the package will help customers "equip their PC with a core set of services," said Bryson Gordon, a group product manager for Microsoft Office. "It resonated well with customers in testing."

Indeed, the name is more succinct than Microsoft has used for some other Office products, including unwieldy names like Microsoft Office Professional Plus 2007 and Microsoft Office Outlook with Business Contact Manager.

Rumors began circulating in March that Microsoft was devising a new way of packing Office to help it better compete with Google Docs and other free or low-cost productivity suites. The company sent out invitations to a select few, asking them to test a mysterious new project code-named Albany.

The company asked people to sign nondisclosure agreements just to sign up for the test. In April, Microsoft confirmed the products that would be available in the package.

Gordon played down the effort to compete with Google Docs and other free office suites, such as IBM Symphony. He said Equipt is aimed at people who are interested in purchasing a PC security suite -- such as Windows Live OneCare -- and might forgo buying Office as well in favor of using an older copy they might already have, or that they might pirate. "We're lowering the barrier to entry" for those customers, he said.

Because Equipt is such a "complicated value proposition" to understand, Microsoft is selling it first through Circuit City because the store's staff has been trained to explain it to customers, and because it has successfully handled other Microsoft product campaigns, Gordon said.

Microsoft determined the $69.99 subscription rate by taking into account the pricing for Windows Live OneCare, which costs $49.99 a year, and the pricing for Office Home and Student 2007, which has a one-time license fee of $149.99, Gordon said. It also took input on pricing from the beta testers, he said.

Partner Content

Explore the Ultrium Edge

The powerful tape technology can address data security with tape encryption as well as long term data protection.

Find out more

Disk and Tape Square Off

Discover what disk and tape really cost -- and which solution provides lower total cost of ownership and optimizes energy use for your organization

Download the White Paper

Don't Fall For The Myths

The Clipper Group explores the truth behind the myths of tape, digging into the misconceptions in the disk vs. tape debate.

Download the White Paper

Will You Add Tape Too?

Over two thirds of disk-only users look to add tape back into storage infrastructure according to recent survey.

Download Survey Information

Comments (1)
Login
Forgot your account info?

We'll see if Equipt can save Office in this marketBy Microsoft Subnet on July 2, 2008, 7:56 pmThe price is right, sort of. A student using it for four years will be shelling out about $240. Meanwhile students have been fleeing to open source office suits...

Reply | Read entire comment

View all comments

Add comment
Anonymous comments subject to approval. Register here for member benefits.
Have a NetworkWorld account? Log in here. Register now for a free account.

Videos

rssRss Feed
Get instant email notification when white papers, webcasts, executive guides are added to our library. Stay informed and up-to-date with the latest on IT Technologies with Network World's Resource Alerts.