Switchfast Blog: The Future of IT

A close look reveals unique pricing opportunities for MS Office

Thursday, June 18, 2009 by Michael Holley

When you go shopping for a brand new car, you have a couple different options. You can either pay top dollar for the latest and greatest, fresh off of the assembly line, or you can pay significantly less for last year's model. Last year's model is still a new product, and is likely still an improvement upon what you currently have, it's just a lot cheaper because it no longer represents the cutting edge.

For the next couple weeks, buyers of software from Microsoft (specifically the Office Suite) will find themselves in a very similar position. Microsoft has announced its intent to release Office 2010 early next year, pushing the current latest edition, Office 2007, out of the limelight. However, since news of next year's release has caused so many companies to want to skip Office 2007 altogether, Microsoft is offering significant discounts and rebates for open Office 2007 licenses through July 3rd.

The cost-conscious buyer that doesn't mind having a slightly out of date model will view this as an opportunity to make a long-awaited upgrade at what is most likely the best price that will ever be available, all the while assuming that when the next iteration of Office comes out, a similar discount will be offered on Office 2010.

However, the cost-conscious buyer who reads the fine print finds what may be an even more attractive proposition. Microsoft offers a service plan with its software called Software Assurance. In addition to support, training services, and access to exclusive offers, subscribers to Software Assurance get another huge benefit: access to free upgrades to the latest versions of the software they've purchased. Microsoft is often criticized for designing the Software Assurance program to expire before new upgrades are released, but for those consumers who have waited this long to purchase the Office 2007, it presents a unique opportunity to purchase Office 2007 at a deep discount and receive a free upgrade to Office 2010 upon its release.

There are a host of other Microsoft offers available now as well. It bears repeating, however, that they only apply to open licenses (as opposed to OEM licenses) and they're only available through July 3rd.

As always, if you have any questions about any of this or would like us to research some pricing for you, just let us know (TheFutureOfIT@switchfast.com).

Here's a partial list of Office 2007 benefits: