I don't know why Microsoft attaches retail prices to it mainstream software products, Windows and Office. You have to be a loser to pay them. Even beyond the specials and promotions you may already know about, there are other, restrictive programs for acquiring these apps. Chances are the licenses won't let you use the software the way you want, but given that enforcement on these licenses may be lax, they're certainly tempting.
Correction: This story has been modified from the original. It now correctly states that Windows and Office software obtained through the Microsoft Action Pack may be used for business use, while the BizSpark software may only be used for development and testing.
Windows
Windows 7 Home Premium, the full retail version, lists for $199.99. Unless you are building a computer yourself, from scratch, you don't need it. Windows comes on computers, and if you buy a machine today with Vista, you get a free license to upgrade to Windows 7.
For computers you already own, you can get an upgrade edition for $119.99, which, if you have an existing Windows machine, is functionally the same (it does a clean install); it only needs to verify that you already have XP or Vista before doing its thing.
But don't get it. Because you can get three upgrade licenses all together for just $149 in the Family Pack upgrade. You think Microsoft is going to check to see if everyone using the license is related to you?
Prices for Windows 7 Pro are higher, but the pricing programs are the same. For the full "Ultimate" version of Windows 7 (which seems to be a pointless product for 99.9 percent of consumers), prices are even higher, and there are fewer discount programs.
Office
For Office 2010, the prices and packages have not been set yet, but we can assume they will be close to Office 2007, which retails for $299.99, or $182.49 for the upgrade version (on Amazon). You can do better.
You probably know that you can get the Home and Student edition for a lot less (Office 2007 Home and Student is $81.99 on Amazon). This version omits Outlook from Office; the e-mail and calendar app is $79.99 by itself. Better yet is the three-user family pack for Office 2007 Home and Student. It's about the same price as the single-user version, $79.99 on Newegg.
If you can convince Microsoft that you're a college-level student--if you have a .edu e-mail from an accredited institution--you can get the Ultimate Steal version of Office, with Outlook, for just $59.95.
I assume the programs for the next version of Office will be similar, or perhaps slightly less expensive. So I project that a three-computer household will be able to upgrade its computers to Windows 7 and the latest version of Office (without Outlook) for about $76 per machine, or roughly twice that with Outlook (assuming family packs of Windows, a Home and Student edition of Office 2010 that's priced similarly to the current version, and the same a la cart deal for Outlook). That's more than Apple charges for upgrades, but it's not a wholly terrible expense.
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