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Microsoft Office 2010 enterprise pricing: You win some, you lose some

By | May 10, 2010, 6:11am PDT

Summary: My ZDNet colleague Ed Bott has posted a list of great suggestions for individuals interested in getting Office 2010 as cheaply as (legally) possible. But what if you’re a business user covered by a volume licensing contract? What can you expect, price-wise, with Office 2010?

Microsoft’s launch of Office 2010 and SharePoint 2010 is on May 12, with the main event happening in New York City. Starting that day, business users will be able to get their hands on Microsoft’s latest version of its Office client and server products. (Consumers who want Office and/or Office Web Apps still will have to wait until June.)

My ZDNet colleague Ed Bott has posted a list of great suggestions for individuals interested in getting Office 2010 as cheaply as (legally) possible. But what if you’re a business user covered by a volume licensing contract? What can you expect, price-wise, with Office 2010?

The researchers over at Directions on Microsoft have done quite a bit of price analysis on this front. They’ve found that volume licensees should expect to pay the same or higher for Office 2010 than they did for Office 2007. In the cases where the price is higher, Microsoft has added more features, Directions on Microsoft noted.

Directions analyzed Microsoft’s latest Office 2010 price sheet for changes. Here’s their summary

Office 2010 Professional Plus goes up 4%
Office 2010 Standard stays the same

Project 2010 and Project 2010 Pro each go up 10%
Project Server 2010 goes up 10%
Project Server Client Access License (CAL) remains the same

SharePoint Server 2010 Enterprise CAL goes up 10%; Standard CAL remains the same
SharePoint Server 2010 Server license goes up 10%
SharePoint Server for Internet Sites Enterprise remains the same
Enterprise CAL Suite goes up 2.5%

I asked Microsoft whether the company was holding pricing steady and/or increasing it for its volume license customers and a spokesperson said: “We do not discuss pricing for our enterprise solutions because of the flexibility built into our Volume Licensing (VL) model.”

Remember, though: Customers who buy through Microsoft’s Open and Select license plans don’t typically have a lot of negotiating power. If you’re under 750 seats, you probably have even less bargaining power. Plus, if you do manage to negotiate a 5 percent or ten percent discount after the price rises that much, you’re still paying the same as last year — or more, if you also managed to negotiate a comparable discount last year.

“We’ve found that Microsoft generally appears to be holding the line on Office price — maybe due to the competition from people like Google Apps, maybe the economy, maybe both. I think everyone would agree that this isn’t a good time to be raising prices,” said Directions on Microsoft analyst Paul DeGroot.

“So while the price of the Pro Plus suite has gone up, more components have been added and it represents the same discount — 65% — from (total of all of the individual components) that Office 2007 Pro Plus does. The deal with Office Standard is actually substantially improved — more components, same price.”

In addition, according to Directions on Microsoft, Microsoft has actually dropped prices on most of the individual components in its Office 2010 suite (Word, Excel, PowerPoint, OneNote, etc.).

Stay tuned for more Office 2010 posts from me this week. I’ll also be covering the New York City launch on Wednesday in person. In the interim, let me know if you have any lingering questions about Office 2010/SharePoint 2010 and I’ll do my best to get them answered…

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Mary Jo has covered the tech industry for more than 25 years for a variety of publications and Web sites, and is a frequent guest on radio, TV and podcasts, speaking about all things Microsoft-related. She is the author of Microsoft 2.0: How Microsoft plans to stay relevant in the post-Gates era (John Wiley & Sons, 2008).

Disclosure

Mary-Jo Foley

Freelance journalist/blogger Mary Jo Foley has nothing to disclose. WYSIWYG (what you see is what you get). I do not own Microsoft stock or stock in any of its partners or competitors. I have no business ventures that are sponsored by/funded by Microsoft or any of its partners or competitors.

Biography

Mary-Jo Foley

Mary Jo Foley has covered the tech industry for 25 years for a variety of publications, including ZDNet, eWeek and Baseline. She has kept close tabs on Microsoft strategy, products and technologies for the past 10 years. In the late 1990s, she penned the award-winning "At The Evil Empire" column for ZDNet, and more recently the Microsoft Watch blog for Ziff Davis.

Got a tip? Send her an email with your rants, rumors, tips and tattles. Confidentiality guaranteed.

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RE: Microsoft Office 2010 enterprise pricing: You win some, you lose some
jackson1984-24316069205748857739440257893812 10th Oct
Your net page is actually valuable! How can I make one such as mulberry bags this?
Beware, if you install 64-bit Outlook 2010 and try to sync your Windows Mobile phone over a USB or Bluetooth connection, all your contacts and other synced data on the phone will be deleted without warning.
@JFDude

sad .. Thanks for your info...
I lost everything from my ppc. Do you think mr.bill will pay for this!
0 Votes
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This begs for another article: Office Web Apps--FREE--is it worth it?
Dietrich T. Schmitz,Your Linux Advocate 10th May 2010
nt
@Dietrich T. Schmitz,Your Linux Advocate

Then go write one.
@James T. Kirk

Seriously... Do you REALLY expect Dietrich to write an HONEST evaluation of Office Web apps??? If anything, it'll be the standard hit piece filled with why it sucks (lack of code transparency, it's Microsoft ergo it's evil)... He'll no doubt finagle in a long digression on App Armor and Linux and his usual schtick into the post - even tho it has NOTHING to do with the subject.
0 Votes
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@Wolfie2K3

No, but if he's off writing an exhaustive review of "free" web apps, maybe he wouldn't have so much time to come here and pollute Talkback.

PS: Somebody at ZDNet should be lined up against a wall and shot for what they've done to Talkback.

I also find it stunning that someone in charge at ZDNet thought THIS was a good idea for a redesign.
What about the Mac version? does it contain macros like the PC version of Office 2008 does?
0 Votes
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VBA
KTLA 10th May 2010
@Starman35

Yes, they're adding VBA support back in to Mac Office.
0 Votes
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Also, need to review Open Office price plans
0 Votes
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More should
apexwm 10th May 2010
Hard to beat the box price of $0, eh?
0 Votes
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No so hard to beat $0.
dvm 10th May 2010
Maybe $0 is good for a small environment or home use, but it's very different from an enterprise. For example, how Openoffice integrates with ERP's like SAP? (www.duet.com). You can manage Office with AD Group Policy for 100s or 1000s of users. Is that possible with OO? What's the email client for OO? Or how compares the OO offering vs Visio or Onenote? How's the integration between OO Alfresco vs Office Sharepoint? Or OO Asterisk vs Office OCS?
That's a small example on why MSO still with so large market share in the enterprise, even when Openoffice is $0.
0 Votes
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Oracle Open Office equivilant price comparison
KTLA Updated - 10th May 2010
It looks like their Enterprise ""Pro" equvilant" is $90 per user, so cheaper than MS Office, but still sognificant once you add in the support (as you get with MS Office).

https://shop.oracle.com/pls/ostore/product?p1=oracleoffice&sc=ocom_openoffice
@linux-user

It is hard to beat Free, but if the features in the Free version do not meet the needs of the individual or organization then what good is it? The part that most Free Software advocates do not get is that many people want to use Office or need it for the features it offers. Free does not automatically make it better.
0 Votes
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nt
0 Votes
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Why are costs going up?
HypnoToad72 10th May 2010
They want to drive down wages, but with costs going up people won't be able to buy.
@HypnoToad72
When I was still an employee rather than a retiree we had a term for that.
WTMWB
What The Market Will Bear.
With Ubuntu 10.04 for free, people would have to be nuts to pay for Windows/Office. I use Microsoft on a couple of machines because I get it for free, and have legacy apps that run on them. Even so I have migrated my other systems to Linux. As Linux gets easier to install, maintain and use, I think there will come a point where people and businesses will suddenly realize that you cannot argue with paying zero for a quality product.
0 Votes
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Whatever floats YOUR boat...
Wolfie2K3 10th May 2010
@earinze

Well... If it works for YOU, then go for it. But don't assume that everyone else has the same limited needs as yourself and your office staff. Some of us have more complex needs that OOo just doesn't handle very well or at all.
@Wolfie2K3

Why is that such a hard concept for some people? They think because a Free Linux Version and Some Free application meets their needs that it should be good enough for everybody. I mean just because a simple 4 door sedan works for you it doesn't mean the other person does not need/want that truck, SUV, or performance car. If one product worked for everybody then there wouldn't be a need for a choice and despite what some Anti-Microsoft people think people actually do choose and prefer Windows and MS Office over other paid or free software.
The keeping up with the Jones attitude is brain dead. Most people use a fraction of the features on Word or Excel and those features haven't changed for years. Perhaps there are significant reasons to upgrade if you are still using Office XP but I can't imagine that there is anything earthshaking enough to upgrade from 2007 - 2010 unless you needed additional liceses and 2010 was the only new license available to you.
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If Office 2007 maies you happy...
Wolfie2K3 Updated - 10th May 2010
@balsover

If you've actually LOOKED at the change list in Office 2010, you'd have noted that there are plenty of changes in the new version. Stuff like the ribbon bars being more user friendly.

Not everyone upgraded to Office 2007... They might be more likely to move on to 2010 tho now...
0 Votes
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...not on M$'s.

I know you Redmond shills like to push new product and expect people to jump everytime there's an upgrade, but it ain't happenin'

You better get used to it by now.
SKUs that have the same components should be compared on price, not by the name of the SKU. 2007 Standard = 2010 Home & Business. 2010 Standard = 2007 Small Business. 2010 Professional Plus = 2007 Enterprise.
0 Votes
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The new ZDNet still sucks
Narg 10th May 2010
When is ZDnet going back to the old, much more readable format?
0 Votes
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Bring back the simplified tree
ubiquitous one 11th May 2010
Now!

sad
0 Votes
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Translation
HollywoodDog 12th May 2010
??????We do not discuss pricing for our enterprise solutions because of the flexibility built into our Volume Licensing (VL) model.??????
If you've got about four thousand seats, as the company I work for does, and if you're an IT company that knows how to develop alternatives to a lot of what Microsoft does, and if you know how to shop and aggressively negotiate, you've got a lot of 'flexibility' from them on price. We demonstrated this recently.
Actually, if Microsoft wanted to win my 100 license shop they would have had to LOWER their price. There are choices now, and we are finding more and more ways to work without Microsoft and the expense of keeping it up to date. Our budgets are hammered. We either keep working with the 8 year old stuff or we find something new that costs less.

Remember the days when Hewlett Packard kept control of the laser printer market by regularly releasing a new, improved printer at a lower total cost? Now everyone thinks that by redirecting our attention to TCO and somehow we will magically be seduced into paying more or buying something we don't need. Sorry - that only works in fat times.
0 Votes
+ -
RE: Microsoft Office 2010 enterprise pricing: You win some, you lose some
jackson1984-24316069205748857739440257893812 10th Oct
Your net page is actually valuable! How can I make one such as mulberry bags this?

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