Thursday, July 24, 2008

For Rent - Microsoft Office

Microsoft is now allowing you to purchase the Home and Student edition of Office 2007 (Word, Excel and PowerPoint) for $70 as part of its new product, Microsoft Equipt.

However, you are not buying the right to use Office forever as the product comes with a one year subscription. After a year, the product will stop working the same way the free downloadable sixty day trial from Office2007.com stops working after 60 days.

You can buy the full version of Office 2007 for between $120 and $149, so why would you "borrow" it like a library book for a year at about 1/2 the price? Well, if you pay the subscription fee every year, you'll receive continuous updates INCLUDING any new version of Office that are released. Think Office 2010 or Office 2013. Also, you can install the software on up to three different machines using the same license key.

Here's the official description of what the product contains. I'm not familiar with the Windows Live product, but it sounds like Microsoft's way to send email and store files/photos online. OneCare seems to be Microsoft's attempt to enter the security related software market.

  • Windows Live OneCare award-winning protection and performance—antivirus, antispyware, firewall, online identity theft protection, automated tune-ups, file and photo backup, and multi-PC management

  • Microsoft Office Home and Student 2007 to get things done and organized—Word 2007, Excel® 2007, PowerPoint® 2007, and OneNote® 2007

  • Windows Live tools to stay in touch with friends and family—Windows Live Mail, Windows Live Messenger, Windows Live Photo Gallery, Windows Live Writer, and Windows Live Toolbar

    Here's a link to the product page at Circuit City. As of this posting there were two comments listed. I'm not sure either poster realizes that they are renting the software.

    Questions:

    1) Are you interested in purchasing this product? Why or why not?
    2) Why do you think Microsoft released Equipt?
    3) Are there any software applications you'd consider renting instead of purchasing? Why or why not?
    4) What type of person would be interested in purchasing this product?
    5) Is there any benefit to renting software vs. purchasing?

  • 12 comments:

    GwenniePlaza said...

    I'm intersted in the "renting" option only because I really can't spend over $100 on software right now. Gas is killing my little family.
    I think it's an economical way to have access to the software without hurting the wallet. I also think it's a smart idea from the MS corp., and the option to update and install on 3 pcs makes it even more appealing to households with more than computer.
    The updating of the program is nice too for those who aren't computer savvy or just don't have the time to follow MS & their constant updating. It'll be interesting to follow the offer & see if it turns out to be a success for MS.

    Unknown said...

    Ok...For me i just cant see how renting Microsoft office would be cost effective. For only a fraction more of the cost you get to keep the software for lifetime. It does not make sense that microsoft would rent this product for only a year but, wait it does. FOR MONEY!! I think this is there way of making more money, I mean they know the people that rent this product witll probobly end up buying it in the future. Especially after experiencing the product for a year and realizing its wonderfull capabilities. And like a ciggarettes they are hoping there renters get hooked and when the year is up they will fein for more. MORE MICROSOFT!!!

    Unknown said...

    I think that the only benefit to purchasing the temporary program is for those who are not able to come up with the money to purchase the rights to the full program and need it right away. If I am not mistaken you get free updates if you purchase the full program as well as the temporary one. The way I see it: to fully purchase the program will cost between $120 and $140. A new one comes out every 3-4 years. So if you end up renting the program because you want the updated version you will have way overpaid (think 70 x 3 years= $210)And then to keep it, continue to pay $70 a year...
    If you only need the program for a class, and will never need it again it may be worth it. However, if I spent the time learning how to do something on one program in a class, I would intend to continue using it and therefore, it would be worth it to me to wait until I could come up the additional $40 to pay for the full version, after all I did come up with most of the money for the program already.

    Anonymous said...

    Purchasing is always better than renting. It certain situations this may be an option that fits your needs. However, it depends on your priorities as well. Obviously, having software isnt as big as a necessity as having a car to get to from point a to point b. Nothing is better than having something permanently. Microsoft sees this as a way to hook its customers by boosting sales at a consistent level. By offering the benefit of receiving new updates that others do not have if you purchase it, it will ultimately lock in the customers who have to have the newest technology all the time. With any big suceesfule business, its all about marketing. Microsoft wouldnt be giving its users this option if they weren't going to boost quarterly sales and such.

    Steve Schwarz said...

    @Gwen,

    I am curious to find out if the program will be successful. If it is...watch out...Microsoft may start offering much more of its software on a rental basis.

    Steve Schwarz said...

    @Vincent,
    If you purchase the year to year license, you get free upgrades to newer versions of Office. If you outright buy Office 2007 - the Home and Student Edition - you won't receive any discount when you upgrade to the next version.

    GwenniePlaza said...

    Professor and fellow bloggers:
    Do you think recent $99 sale at Best Buy has something to do with the new "rental option?" It seems to make more economical sense to purchase the product now, instead of rent. I wonder if the MS Corp. has anything to do with that $99 sale as well? Things that make you go-humm...

    Rosalie A. Gamba said...

    I'm not renting it. I'll wait for Professor Steve to tell us where to get it for free.

    Liz Libby said...

    I might be interested in renting a new pproduct if I was unsure if I really needed it or only needed it for a limited time. With the continous upgrade it may be more cost effective than purchasing each new version. Some buyers have expense accounts that will offset the price of income tax benefits if used for work. On the otherhand I generally purchase the product and stick with it for years as long as I can get some use out of it. For the computer lit class, it may be a benefit to rent rather than buy since you only need it for 6-8 weeks. I also like the free trail idea given in class. I am fortunate enough to have a Geek in the house that is always upgrading everything. I do like that your are give a choice.
    Liz Libby

    jessica zinna said...

    i might be interested in renting a new pproduct if i didnt know if i really needed it to do alot of work, because i wouldnt want to spend all that money, when really i could just spend a cheaper price and get the use of what i need out of it, other then spending money that i dont have and not even getting my money's worth from it. With the continous upgrade it may be more cost effective than purchasing each new version. if i can purchase the product and stick with it for years and get a good amount of things out of it then maybe i would pay full rpice. but for example, the computer lit class, it is much more v benefical to rent rather than buy since you only need it for 6-8 weeks. when you are taking the class.

    Larry Doyle said...

    I think that this is more of a marketing deal than anything, that Microsoft has put together to target more of the student audience with its Office 2007 edition. I think that Microsoft hopes that the people that buy it, look at it as a short term fix because of the fact that it is cheaper then buying the full version. Why not buy the full version for only $50 dollars more? I think that Microsoft does this because they can see more profit by offering this to its customers. I personally would never buy this because I would want to own the office 2007 edition for my future use.

    Amy Cohen said...

    This live one is interesting.if you need anvtivirus protection with office it is a good way to go about it. Antivirus protection is rarther expensive on its own. it is updated in order to probably keep up to date with the most current infections a computer can receive.