Following Microsoft’s recent announcement of their highly competitive SaaS (software as a service) pricing model for Office 2013, they have also announced a raise in pricing for the old methods of busying Office.
Traditional ‘out-of-the-box’ licenses of Office 2013 will be 17% more expensive than the Office 2010 prices. Keep in mind that this is while they are dropping their pants on the cloud based Office 365 pricing model, where whole households can get the product for 8.33$/month. It seems fairly obvious that they are pushing hard to encourage people to adopt the new pricing model, which is both harder to pirate and will provide a more stable cash flow stream to Microsoft.
Office Home and Student 2010, the bundle that includes Word, Excel, PowerPoint, and OneNote, currently costs $120 and will be going up to a new $140 price point with the release of Office 2013. The version which comes with more productivity applications, Office Home & Business 2013, will be priced at $220 which represents a 10% increase.
Additionally, Microsoft is eliminating multi-license SKUs of Office 2010 and Office 2013 (the three or two-license versions which are offered at major discounts). In Office 2013, users who want to buy mulch-license rights with the perpetuity version of the software will be spending significantly more expensive ($420 vs $150 in the case of three Home and Student Licenses).
This represents the first time Microsoft has raised the price of Office since 2001, but what makes this raise interesting is it is really more of a nudge towards a different pricing mechanism all together. Microsoft is hoping users will instead adopt it’s Office 365 pricing model which is discussed here: New Office 365 Home and Small Business Pricing.