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Are lower priced apps in Microsoft's future?

By Jacqueline Emigh, BetaNews

August 6, 2008, 6:45 PM

Microsoft has told its shareholders and the SEC that it is developing products "with basic functionality that are sold at lower prices than the standard version." But today, the company indicated this may not be anything new.

Whether Microsoft's plans for low-priced, general-purpose applications extend beyond its already acknowledged pilot of Works SE 9 is a question still hanging in the air this evening.

In its annual report, filed last week with the SEC, Microsoft said that "open source vendors are devoting considerable efforts to developing software that mimics the features and functionality of our products." Microsoft has been developing lower-priced products in response to this competition, according to the annual report.

Yet when asked today for elaboration, a Microsoft spokesperson pointed BetaNews directly to a pilot of the free but advertising-supported Works SE 9 software which began about a year ago, and is apparently still under way.

"Microsoft introduced a pilot of Works in August '07 called Works SE 9. Works SE 9 enables our OEM partners to continue offering pre-installed productivity software at a reduced cost," the spokesperson said in an e-mail to BetaNews.

"Customers have told us they want a productivity solution already installed on their new PCs, and Works SE 9 makes it more affordable for our OEM partners to meet this customer need. The pilot is being run in limited markets with a limited number of OEM partners."

The spokesperson gave neither a confirmation nor a denial to BetaNews about other published reports, in which Microsoft's statements in the annual report were interpreted to mean that additional lower-priced products are on the way from Microsoft.

Although Microsoft had nothing more to say today on the subject of low-price software, it's interesting that the statements in its annual report come just at a time when a number of OEMs are readying new PCs in "mini" form factors. Some existing "minis," such as Asus' Eee, already run Linux. If OEMs want to keep costs down on Windows editions of "mini PCs," conceivably, they could be looking to Microsoft for lower cost application software to help them do just that.

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By DatabaseBen

posted Aug 8, 2008 - 1:11 PM

wasn't leasing/subscribing on a yearly basis microsofts answer to lower cost software previously?

Score: 0

By Floodland

edited Aug 7, 2008 - 10:14 AM

MS is changing?
I hope so... Freedom means to be able to choose between old and new interface. IE: Office 2007 lack freedom.
It is not a minor thing what MS did there, it shows MS philosophy: You have to do it their way, they do not care if you like it or not, it is the new way and you have to walk to the point we mark.
Open source: You like it? good for you, you do not, get involved, nobody force or tell you how you must work! That is why Linux and other open source alternatives are gaining strength. They have less programmers, less money to invest, but you have the freedom to choose (or get involved) on every part of it.
Microsoft efforts to limit you on what they believe, is better. Lately they are mistaking, spite of their results...

I think that if you make a better product you do not need to push your clients to change it or cheat them: We shall adopt new products because they are easier, faster or more complete, not because we are pushed or restricted (Windows XP/Vista)!
I love technology the same way I hate being pushed

Score: 0

By PC_Tool

posted Aug 7, 2008 - 11:22 AM

I hope so... Freedom means to be able to choose between old and new interface. IE: Office 2007 lack freedom.

...and if they did that, you'd whine about bloat.

It is not a minor thing what MS did there, it shows MS philosophy: You have to do it their way, they do not care if you like it or not, it is the new way and you have to walk to the point we mark.

Yeah. it couldn't have anything to do with the surveys, the feedback, and the time and effort spent on designing a new simple interface. We should just leave it as it is because people are familliar with it. F*ck progress.

I think that if you make a better product you do not need to push your clients to change it or cheat them: We shall adopt new products because they are easier, faster or more complete, not because we are pushed or restricted (Windows XP/Vista)!
I love technology the same way I hate being pushed


No-one forced me to buy Vista. No-one forced me to upgrade our Office suite. The only people b****ing about being "forced" are either too stupid or feckless to see the alternatives or trolls.

Which are you?

Score: 0

By Floodland

edited Aug 7, 2008 - 1:53 PM

"...and if they did that, you'd whine about bloat."

No, unless MS decide to load both UIs in ram there will be no bloat. There is something called choice. Logic: ribbon or classic = No bloat

"Yeah. it couldn't have anything to do with the surveys, the feedback, and the time and effort spent on designing a new simple interface"

MS do not seem to listen to surveys, feedback or anything. Did you hear about "Save XP" program?
http://weblog.infoworld....07/sign_the_save_x.html
More than 210000 persons signed the petition and MS retired the product from retail. That is just a recent example, there are tons of signs that show MS do not listen as they should.

MS do not sell Office 2003 or XP licenses anymore, so you cannot choose. That is what I call "forced election". And that is why they lies themselves saying "Vista sales are pretty good". Most of Vista licenses sold are downgraded when users are annoyed with MS "innovations"! Again, innovations should make users happy, not annoy them or make their work harder.
To innovate you need to make things work BETTER than before, if you fail to do it, then you walk backwards. That is not innovation.
Now PC_tool, you crossed the line, again... I will not insult you even if you deserve it. Have a nice day.

Score: 0

By PC_Tool

edited Aug 7, 2008 - 2:57 PM

No, unless MS decide to load both UIs in ram there will be no bloat. There is something called choice. Logic: ribbon or classic = No bloat

Right. you wouldn't complain at all about the extra disk space requirements. *yawn*

MS do not seem to listen to surveys, feedback or anything. Did you hear about "Save XP" program?

MSFT isn't going to go backwards. People simply have to get over their comfort issues.

there are tons of signs that show MS do not listen as they should.

*laughing* To trolls and fanatics, you mean? Of course not. They listen to actual customers. The one's who requested integrated search and the removal of confusing "admin" options. You, as usual, fail to realize that *you* are not the target demographic.

Most of Vista licenses sold are downgraded when users are annoyed with MS "innovations"!

What, you ened to lie now to make a point? Nice try.

Now PC_tool, you crossed the line, again..

As would anyone pointing out your failure of logic, your blindness towards reality, and your own hypocrisy, apparently.

I'll cross that line every time you feel the need to expose your own idiocy on this public forum.

...have a nice day.

{Edit}
MS do not sell Office 2003 or XP licenses anymore, so you cannot choose.
Amazon:
Office 2003 - $145

My mom can still get Office 2003. If you can't, it's a failure on your part, not MSFT's.

Score: 0

By Floodland

edited Aug 7, 2008 - 3:55 PM

This could be the last time I answer to you if you insist with that modals. Learn to be polite or you disqualify yourself.

Now, you called me liar because I wrote that most Vista installations are downgraded? You should inform yourself before make such bold statement, please, read:

http://vista.blorge.com/...rs-satisfied-with-vista/
or
http://www.computalk.net/showthread.php?t=2172
or
http://bits.blogs.nytime...dex.html?ref=technology
or
http://news.softpedia.co...oft-Subject-57931.shtml

And we are not talking about minor players but corporations here.
Is that enough for you? If not, Google is your friend, Tool.

About licensing, I am not talking about amazon (you can find a 1800 clock if you search there), but the preferred MS channel, Select contract agreements, you should know about it, don't you?

I will not go point by point, but either you are extremely misinformed or... nothing... Grow up!

Score: 0

By PC_Tool

posted Aug 7, 2008 - 4:50 PM

This could be the last time I answer to you if you insist with that modals.

If wishes and dreams... You insist on posting BS, I insist on exposing it as such. :)


Now, you called me liar because I wrote that most Vista installations are downgraded?


Yes. More specifically, I called you a liar for you use of the word "most". I must admit, your links are impressive. Of course, the first is a blog post which has little to do with the claim, the second is pretty much the same (where *do* they get their information?), the third is out of date as Intel has since stated they have *already* begun deployment of Vista. Really, only the last link is at all relevant and it's *one* company.

You can say "most" all you want. You can even link the opinions of others all you want. That still doesn't make it true.

I am not talking about amazon (you can find a 1800 clock if you search there), but the preferred MS channel, Select contract agreements...

Interesting. The "preferred MS channel" is "Select contract agreements"?

Perhaps for you. ..and maybe, just maybe, you're a tad out of the loop?

FYI: MS stopped selling Office 2000 quite some time ago and yet we continually bought new licenses from MSFT up until our switch '07 (we skipped '03). Perhaps you need to contact your MSFT rep?

I will not go point by point

*laughs*

I can see why you wouldn't want to bother. What more is there, really?

Grow up!

Get a clue? I couldn't care less if you dislike Vista. Many do. Some even, for valid reasons. Your claim that "Most folks who bought Vista downgraded", however, is complete Bulls***. Some did. That we know.

That is all.

Score: 0

By Floodland

edited Aug 7, 2008 - 3:43 PM

Dupe, sorry

Score: 0

By terminalx

posted Aug 7, 2008 - 2:00 PM

For people who have not used Office it does work better and has a bit of a learning curve for current users but the new interface makes more sense to most people whether you like it or not. People do not like change, its a fact and there's a lot of people who are so stubborn with it will ignore any usefulness it might provide

210,000 signatures on the internet does not mean everyone wants XP.

It makes no sense to continue to sell an old product, all companies retire their old products its just the way it is.

Score: 0

By Floodland

posted Aug 7, 2008 - 3:12 PM

It makes sense to retire a product if:
1) A better product replaced the previous one.
2) There is no demand for the old one.
And not to force a failing product to improve its sales...

But you are educated, polite and your point make sense. I think someone should learn from you...

Score: 0

By PC_Tool

posted Aug 7, 2008 - 5:15 PM

Hey, when you stop posting BS, I'll stop calling it out as such.

Polite? What on Earth makes you think I should be polite to you? You are posting your opinion as *fact*. That's about as impolite as it gets, bud.

I don't agree with your opinion, I despise people who try to pass them off as facts.

Perhaps *you* should be more careful in your wording? If you'd left it simply at "some" or hell, even "many" companies are downgrading, I'd have left it alone.

Then the BS about the products in question no longer being available... Xp is available through OEM or the MSFT partner programs at least until Jan of '09. We were buying Office 2000 licenses directly through MSFT as late as 2 months ago(skipped '03). These products you claim are unavailable are not, and will not be so for quite some time.

Those are facts, not opinions.

Score: 0

By preinterpost

posted Aug 7, 2008 - 8:52 AM

MSFT will probably have to lower prices while open source software is making inroads and improving day by day.

However, this is software. The major effort is writing it to start with, not copying and distributing the binaries. At the same time the number of computer users is increasing. There are still Billions to go. So balancing a decrease of price against increasing distribution should work out for some time.

Related: The greed of the music/media industry (increasing prices and distribution simultaneously) is one of the top reason they are so loathed.

Score: 0

By DudeBoyz

posted Aug 7, 2008 - 6:09 AM

Hey, I'm still using Office 2000 Pro and if I ever do make a move to something else, I think it will be Open Office.

It seems to me that with each subsequent release of their office products, Microsoft has not been able to offer a compelling reason to upgrade, nor have they focused on value. In fact, they do at times seem to be losing focus when it comes to their products.

Here are a few thoughts rambling about in my tiny head:

MS does not seem to care that much about compatibility. Remember when MS Access 1.0 came out and everybody was totally geeked about it and did a whole bunch of custom coding? What happened when Access 2.0 came out? Many of those applications developed in Access 1.0 would not run properly, if at all, under 2.0. Why? Because MS decided to "rethink" the syntax in an effort to improve it. So, unless you paid through the nose for the Runtime kit that can make Access 1.0 apps compileable and stand alone, you have to spend tons of time recoding things.

Remember when Microsoft decided to change the boolean functions in VB? You have bitwise operations all over your code and then find out that the behavior of those operations will be altered and your app may no longer function in the same way?

Remember how MS worked to get everyone to buy into the whole "Front Page" and "Jet Database Engine" integration? How they provided Front Page Server extensions and encouraged folks to invest heavily in that system. Well, that hasn't exactly turned out the way they said it would, now has it?

The new Ribbon interface may seem nifty to some, but retraining hoards of office staff can get pretty darn costly. You can take an employee who is very efficient and capable with Office XP and turn them into a much less efficient asset. Oh, and by the way, that Front Page program we used to bundle with Office? Not so much any more, ok?

Let's remember the Value portion of things. Hey, that Microsoft Student and Teacher edition of Office looked pretty good. And heck, in the latest version, they decided to open it up to other users and renamed it "Office Home and Student" and allowed you to install it on up to 3 PC's in your home for no extra cost. That looks pretty cool on the surface. But wait a minute. I can't seem to figure out how to install Outlook - maybe they put it under a different installation dialog or something? But you look and look and all you find is something called "One Note". Surely this must be some kind of mistake, right? I mean the first version of Student and Teacher had Outlook, and you know that tons and tons of people rely on that application on a daily basis, yet you still can't seem to find it.

Ooops! It's gonna cost ya about $99 to snag yourself a copy because for some reason, it's no longer included in the bundle. Wow. Not such a good value after all, eh? Outlook is only licensed to one PC at a time, while the Home and Student is licensed for 3 PC's. So you have to fork out $99 each for 3 copies? Oh my, that sort of challenges the budget a wee bit, don't it.

It is almost as if Microsoft was its own worst enemy when it comes to cultivating a loyal customer base.

Enter Open Source.

Wait, you mean you can download something called Open Office for FREE? And wait - you mean it has that same old familiar interface that Microsoft Office used to have, so you can get up to speed right away? What? You say that the file formats are not proprietary, and do not become incompatible with each upgrade of the suite? Surely you jest...

So with all the money you could save by going with Open Office, you can even afford to kick out some bucks for something called Dreamweaver, which apparently generates much more efficient code than Front Page ever did, and somehow manages to be standard compliant, so when you finally finish your page, it will look great in this new free thing called Firefox. Hrmmm...

All this to say that I really don't think this effort to make reduced-function apps a bit cheaper is going to actually benefit them much, not to mention the consumer. I mean, it's not like they really have the best track record, after all. :)

Score: 0

By preinterpost

edited Aug 7, 2008 - 8:42 AM

I think if you can get away using O2k you will be fine with OO.

"MS does not seem to care that much about compatibility". I don't think that's true and it's one of the main reasons I probably won't ever go back to an Apple platform for example. Related compromises are main reason for most complaints with new versions of MSFT products. There is always a fine line between promoting progress and sustaining legacy.

Linux is still too much compromise. Prob fine if all you want is an OS with an office suite and some geek tools. When you go beyond that you spend more time configuring your PC than using it for the initial purpose. I hope that will change but not there yet...

Score: 0

By DonGato

posted Aug 7, 2008 - 6:47 AM

I didn't know/remember some of those things you say and I suffered some (Access 1.0 migration) but you're right.

I should give OpenOffice a second try when I get tired of 2007 (it won't take long).

And about Dreamweaver... I remember it generated a lot of trash code. That was when I used to write pages in notepad. :P

You mean that changed and now it's a nice application?

Score: 0

By DudeBoyz

posted Aug 7, 2008 - 7:35 AM

Heh. Well, I had always heard that Dreamweaver had much cleaner code than Front Page. Is that not so?

I started web stuff back in the day with AOL Press, v1.2 I think. That was a huge boon for me because it made creating tables and even image maps pretty darn painless, and it did some nice indented formatting so the code looked neat and tidy.

Then I messed with Composer, which was was in the Mozilla suite (I think that is SeaMonkey now) and thought it was pretty darn good.

But even to this very day, I whip out Edit Pad Classic 3.5.3 to do some quick editing, and even use Search and Replace 5.9 to handle group editing.

As for Access 1.0, that will forever haunt me... (shudder)

Score: 0

By zridling

posted Aug 6, 2008 - 11:24 PM

Between the various open source offerings and ODF, Microsoft is failing more often when compared to its past sales numbers. The business world stopped at Office 2003 (or before); the rest went full out for open source, and in 2008, open source won the war for the future.

Score: 0

By PC_Tool

posted Aug 7, 2008 - 9:23 AM

The business world stopped at Office 2003 (or before); the rest went full out for open source, and in 2008, open source won the war for the future.

I don't think I've ever seen you quite so full of s*** before, Zaine.

Open Source won the war? What war? Did you force your mother to participate in another one of your fantasies? Let me guess, she was "open source"....

You spend so much time stroking your own fantasies about Linux you can't even see straight anymore.

But just keep ignoring the numbers. Obviously, in your world, they lie....

Score: 0

By AntiochMedia

posted Aug 7, 2008 - 1:48 AM

I think that the new interface for Office 2007 is slowing adoption. I -like- it for Powerpoint... not sure that I care for it for Word or Excel... I wish it were optional

Score: 0

By ingram091

edited Aug 7, 2008 - 5:02 AM

I have to agree. I recently had to do something for my mother on Office 2007 in Excel. She just couldn't figure how to do it in there and I was like sure no problem. then was like WTF!!?? I mean I have seen it and used it in beta. but OMG trying to find how to do simple easy to do stuff in that mess is crazy when you are already trained to use the classic interface. and MS does not offer a classic interface AT ALL! After about 30 mins I was able to piece together how to do it. But I should have just transfered it to my laptp and did it on 2003 and it would have been done in a few mins or so.

Besides the point. Anymore with suites like star office, and Open office for free Office suite alternatives, It hardly seems required to suffer the limitations of MS works anymore. I mean Open Office is as good if not better then Office XP anymore. So if you do not already have something why not just put that in and your good to go, and fully compatible with MS product formats too boot. Instead of the wacy MS works formats that some suits choke on.

I think MS is starting to realize that Works as it is just is not a viable product anymore... I think thats why their latest efforts towards it seems to be pointing to an Online version similar to and compete with google docs and such...

As to competing with the Open Office suite with MS Office... That is going to be challenging, especially with that nasty interface no one seems to like all that much. I just wish they would have allowed for a MS Classic option, rather then having to go to a 3rd party to get that option for 2007 for an additional cost.

The Cost factor for Office 2007 pro is not too bad in comparison. It dropped drastically as the demand for it reduced over time. And as word of mouth of the interface circulated... The Discount centers like Costco has Student versions for just a few bills. Wither its legal to get it that way is questionable at best, but its common to both get and sell it that way anymore. Go figure?? Indeed the retail Office 2007 Pro is actually kinda hard to find sometimes, unless its from a direct MS vendor, and as such its still a little pricey.

As to the OEM options. almost all the vendors offer Word 2007 with Works in OEM for near nothing. The added Excel 2007 OEM option is offered with the Vista Business packages.

Indeed Dell offers a full office 2007 OEM trial for their customers by default. Sometimes thats great, sometimes its a pain cause you got to uninstall it to put Office 2003 on the machine.

IDK. I still have to admit I prefer my MS Office 2003 suite on which ever main machine I am using... I have open office on my secondary machines as a backup.

Score: 0

By Paul Skinner

posted Aug 7, 2008 - 5:10 AM

Once you've spent some time with it you'll realise things are in an easier to get to place than they were before.

Change is a hard thing to take, but it's worth it usually.

Score: 0

By PC_Tool

posted Aug 7, 2008 - 9:28 AM

For the most part, I agree.

There is really only one thing that bothers the hell out of me about 2007, and that's the loss of the tear-away menus.

In 2000/2k3 I could "tear off" the border, fill, and font-color menus.

The closest thing to it in 2007 is the "highlight-popup menu" functionality, but it is limited and frequently annoying (doesn't always work as expected).

I do like 2007, and we finished our migration to it in several of our locations already, but I do miss 2k3 once in a while.

Score: 0

By DonGato

edited Aug 7, 2008 - 5:30 AM

Well, I'm using it since released and I can say that for some things is easier but for other obscure things I almost spent 30 minutes trying to find where it was. Not even in the help nor Google I was able to find the new place.

I think it's a nice step but with some minor mistakes that made it complicate to adopt it. And most people I talked about think is quite slow to start. I didn't find it *that* slow but I agree it takes longer than 2000/2003.

In any case, if it wouldn't because of having the license for being a partner I wouldn't buy it. IMO it's overpriced for the features I need.

Score: 0

By PC_Tool

posted Aug 7, 2008 - 9:25 AM

What minor mistakes?

I love how people can bash software on the internet for "all of it's problems" and yet can never be bothered to actually express what some of those problems might be.

Try it sometime. Someone might actually have gone through it and found an easier solution. Couldn't hurt, eh?

Score: 0

By Niro

posted Aug 7, 2008 - 12:03 AM

Ah...that explains MS's record profits then...

Score: 0

By mjm01010101

posted Aug 6, 2008 - 11:46 PM

heh, MS has more users of office, windows, etc than ever before. their profit and revenue are highest ever also.

Score: 0

By AntiochMedia

posted Aug 6, 2008 - 10:14 PM

Microsoft should provide Microsoft Word and Excel via OEMs with basic functionality. It could be an 'Elements' type package.

Access, Outlook, Powerpoint, Exchange Server -- all that 'fancy stuff' that the majority of basic home users do not use can be extra.

And I'm only saying this because some people do not understand that there are alternatives to Microsoft Office products.

Score: 0

By testman

posted Aug 7, 2008 - 7:34 AM

Yeah, it's called Microsoft Works.

Score: 0

By lazarus98

posted Aug 6, 2008 - 10:31 PM

Excel,Outlook,Word are already available to OEMS, for next to nothing. Throw in PowerPoint and you have the Home and Student version which is cheap at, $64

Score: 0

By DonGato

posted Aug 7, 2008 - 5:33 AM

Well, for most people $160 isn't what you would call 'next to nothing'. I still think such apps should be bellow $50 and without a million of features most people don't use.

http://www.nextag.com/mi...ftware-2007/search-html

Score: 0

By AntiochMedia

posted Aug 7, 2008 - 1:47 AM

Really, I didn't realize that MS made those available to OEMs at such a low rate.

Score: 0

By lazarus98

posted Aug 7, 2008 - 10:50 AM

The OEM get it even cheaper. You can buy the Home and Student version at BestBuy for $64

Score: 0

By mjm01010101

posted Aug 6, 2008 - 6:56 PM

If I get one more resume in "Microsoft Works" format, I'm going to do the same thing I do with all the others: dump it.

Score: 0

By Joco

posted Aug 7, 2008 - 12:55 AM

Why? Did you specify in your job ads that Word version N is absolutely required? What's next? Candidate is rejected because his/her horoscope is not compatible with yours?

Score: 0

By mjm01010101

posted Aug 7, 2008 - 9:20 AM

PDF, OpenOffice or Word, in that specific order. PDF because I know that any formatting issues will be resolved on both ends.

Score: 0