# Microsoft to Offer Software on a Subscription Basis

#### btarunr

##### Editor & Senior Moderator
Staff member
Soon, among your usual utility bills of electricity, water, gas, telecom, could be a new addition, software. Microsoft has come up with a new subscription model, where instead of outright buying a license to use the software, consumers can subscribe to use it. A monthly or annual subscription charge has to be paid by the user (subscriber) to continue using the product.

This scheme for now covers products such as Microsoft Office and One Care security software. Analysts are already beginning to predict this will be Microsoft's next big business model which will fuel its growth in the years to come. There's much in store for both consumers and the company.

For the consumer it means value. Let's say I subscribe to Microsoft Office 2007 for this year at a charge of US $70, the next year, if Microsoft comes up with a new version of the software, say Office 2009, I can simply unsubscribe to this and switch over to that, a lot more convenient than if I were to buy a$350 copy of an Office 2007 variant at the store, and next year Microsoft comes up with the new version, I end up spending a lot more to be able to use that software.

For the company it means higher income, since each legitimate subscriber will have his own usage account and illegal copies of the software won't run since the user still needs a subscription account with Microsoft to even run the software or end up using the pirated product disc as paper-weight. While it's only limited to Office and One Care now, it wouldn't be too far-sighted to think other Microsoft products, even Windows for that matter, could come with subscription plans.

With inputs from Newser

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#### CStylen

##### New Member
For the consumer it means value. Let's say I subscribe to Microsoft Office 2007 for this year at a charge of US $70, the next year, if Microsoft comes up with a new version of the software, say Office 2009, I can simply unsubscribe to this and switch over to that, a lot more convenient than if I were to buy a$350 copy of an Office 2007 variant at the store, and next year Microsoft comes up with the new version, I end up spending a lot more to be able to use that software. QUOTE]

Most users in the business world do not upgrade software frequently enough for this to be cost effective. Mainly due to the time spent on training. Just think of how much XP would have cost us by now...

#### Luke

well i won't pay subscriptions

#### ManofGod

Yeah, I am not necessarily fond of the subscription idea either. Oops, you did not pay your payment, guess we will turn off you windows until you do. Oops, maybe we will have to turn off you office until you pay. So what if you cannot access your files, I guess you should have paid.

Joe

#### Mussels

##### Moderprator
Staff member
well i won't pay subscriptions
you wont pay for an OS either, lol.

manofgod: thats a very valid point, i hadnt considered that.

#### btarunr

##### Editor & Senior Moderator
Staff member
Yeah, I am not necessarily fond of the subscription idea either. Oops, you did not pay your payment, guess we will turn off you windows until you do. Oops, maybe we will have to turn off you office until you pay. So what if you cannot access your files, I guess you should have paid.

Joe
It's like an internet connection you have. If the due date is 30th of this month, you don't pay, it's the same "oops, no pay, no connection", right?

oops, I know you want to chack email, oops, I know you want to pwn someone at WoW, oops, I know you want to show-off your e-pns at the forums, oops, I kno......but no pay, no connection.

^substitute 'connection' with < insert utility here >

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#### kaneda

and this shall only make more people go and look for alternatives, linux shall rise above all.

although unless apple also switches to this method i dont see how thats going to be good for competition.

#### btarunr

##### Editor & Senior Moderator
Staff member
and this shall only make more people go and look for alternatives, linux shall rise above all.

although unless apple also switches to this method i dont see how thats going to be good for competition.
How? It's cheaper than buying the software, right?

#### kaneda

not really, microsoft is a business first and foremost, its aim to to make money.

subscriptions dont end unless you stop using the software. paying 10bucks a month for the next few years as i use this OS doesnt exactly make me feel all that better off.

if its as tpu says and its for things like office, i can understand sorta. still it wont effect me.
or about 80% of this forum's users.

im really unfit to comment as i , speaking honestly, NEVER pay for anything other than my online smack addiction.

#### t_ski

##### Former Staff
Microsoft has been doing this for a long time with businesses and school. The college I was going to had a deal with Microsoft where the school paid "X" amount of dollars for for software, and Microsoft provides them with the latest version of whatever the school wants.

Also, Microsoft has been working to make many applications web-based for this same reason: you won't even have to have the software installed locally. Just browse to the web-location you need and the software is there for you.

There are two reasons for this. First, Microsoft got hurt by having six-seven years between XP and Vista. They spent a lot of money to get one OS rolling, and the initial release is where they see the highest volume of sales. (Just think of all those people standing in line to buy Windows 95 when it came out.) Whenever there is a big gap in time between the OS release dates, they don't have a lot of income coming in. Going to subscriptions makes sure that there is a regular paycheck coming in from everybody every month.

Second, going to a web-based set of applications allows the users to pay and access the software, without having to buy the disc. The disc, the manuals, the boxes, etc. all cost money. Less stuff for MS to produce means more money in their pocket.

#### btarunr

##### Editor & Senior Moderator
Staff member
not really, microsoft is a business first and foremost, its aim to to make money.
To make money is the foremost aim of any business, charity included.....or should I say, Mozilla included.

#### Kreij

##### Senior Monkey Moderator
To make money is the foremost aim of any most business, charity included.....or should I say, Mozilla included.
My wife runs a Massage Therapy business.
She wants to help people and wants to make enough to pay her bills, but we actualy do better on taxes if her business take a loss.

#### CrAsHnBuRnXp

It has its pros and cons and I must say that if I have to pay say $50 a year to use office or even Windows, I will. Because by the time they come out with a new OS or Office, your paying close to the same price anyway. This IS assuming the subscription fee is low enough. If they do do this, it will probably be like what they do with Xbox Live. Pay monthly, every 3, 6, or a year. When you look at the figures, if you dont just flat out spend$50 for a year (and most times get a free month) your spending a lot more in the long run.

#### AphexDreamer

This gives them so much more control. What ever happened to thinking about the customer and not how much money you are going to make/gain. Come on, don't be an ass Microsoft.

#### eidairaman1

##### The Exiled Airman
This gives them so much more control. What ever happened to thinking about the customer and not how much money you are going to make/gain. Come on, don't be an ass Microsoft.

#### GSG-9

That would make me a linux os fan.

#### CrAsHnBuRnXp

I personally say piss on linux just because i dont have the time to learn its bs on how to install something. Granted im 21 years old i dont have the patience to learn it. I wont go with mac either because its too expensive, lacks video games (though not like it used to) and it really isnt all that upgradable.

#### Shyska

##### New Member
This model has been for a while for a businesses. Also there is SA (software assurance) that gives licenses upgrade rights.
Unless they make these payments a lot smaller than they are now, I don't see many customers...