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March 26, 2008 9:58 AM PDT

Does Microsoft need a value menu?

by Ina Fried
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Microsoft has been tight-lipped about the "Albany" product that it has just started testing, but ZDNet blogger Mary Jo Foley hears it might be a consumer bundle that includes Windows Live OneCare, Office Live Workspace, and Office Home and Student Edition.

The product, which apparently also goes by the name "ValueBox" may be an attempt to beef up the consumer version of Office amid stepped-up competition from Google Docs and other free and online competitors.

It strikes me, though, that Microsoft may be looking at ways to protect the Home and Student version of Office, a product that has been a huge seller at retail ever since its introduction as the Student and Teacher version back with Office XP in 2001.

Since Office Live Workspace is already free, the main addition to the Office box would be Windows Live OneCare, Microsoft's consumer antivirus product. Although it carries a $50 list price, it can often be had for far less either at retail stores or online. How much this would add to the product's appeal is unclear, though antivirus is also one of the biggest areas where consumers shell out for boxed software.

Microsoft has confirmed that it sent out invitations seeking testers for Albany, but has declined to offer any details about the product.

The testing of Albany, though, is not occurring in a vacuum. The company had previously said it was looking into the possibility of an advertising-funded productivity suite based on its Works franchise. Some inside the company have been pushing that approach for some time.

Microsoft may, however, now be rethinking whether it makes sense to have two separate productivity suites for the home at all.

Works has historically been a separate product from Office, although Microsoft has at times brought the two products closer together. One bundle of the product, known as the Works Suite, includes an older version of Word as part of the product, along with Works' separate tools for things like databases and spreadsheets. Microsoft has not updated Works substantially in some time, with the product overdue for either upgrade or replacement with Office Home and Student, were Microsoft to go that route.

Any decision on the future of Works would have to look beyond the retail channel, however. Although Office Home and Student is the big seller on store shelves, Microsoft has historically used Works as a product that computer makers can pre-install on new machines, though such deals generate only a couple of dollars for Microsoft. These days, new PCs also come with a trial version of Office. With direct sellers like Dell, Microsoft also has an option called Office Basic that includes Word, Excel, and Outlook.

During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft. E-mail Ina.
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They need to lower all their prices
by Leria March 26, 2008 1:30 PM PDT
150 dollars for an operating system that can only be installed on ONE machine? Come on now.... even Apple knows that isn't a good deal and allows you to install their latest OS on 3 Mac's.
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But the difference
by delf76 March 26, 2008 4:19 PM PDT
Ah, but the difference is that Apple makes most of their money on the Hardware. Microsoft Makes Money on the software.

But, it would be nice is Microsoft did offer a volume discount on the OS's.... I do agree.

As for Microsoft Works: Who uses this? I think Microsoft really needs to answer that question. I seriously haven't used Works since it was shipped on my Windows 3.1 machine back in 1994. To tell you who clueless I was, I didn't even know they still offered the package. I was wrong.

I think they would be better off Pushing the Office and Home Edition of this package, if they want to get some traction. It also wouldn't hurt to lower all of their productivity packages prices about $25-$50 either.
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Indeed...
by Penguinisto March 26, 2008 4:43 PM PDT
...and that $150 won't even get you the top-end version. Leopard comes with all the bells and whistles (and eye candy), all for less than $130.

But hey - it's their product, their rules. If they want to charge you too much and then restrict what you can or cannot do with it, that's their prerogative.

Of course, you don't [i]have[/i] to buy the thing...

/P
Microsoft Corporation
by alexbaran March 26, 2008 4:06 PM PDT
Microsoft Corporation or often just MS, is an American multinational computer technology corporation with 79,000 employees in 102 countries and global annual revenue of US $51.12 billion as of 2007. I've read about this at http://www.shapedword.com.
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Anti-virus?
by Penguinisto March 26, 2008 4:40 PM PDT
I haven't bought or acquired an A/V product for home use since Windows 2000 came out - but that's probably since I don't use Windows @ home. My Mac and Linux machinery have no use or need for 'em.

OTOH, A/V products are [i]reactive[/i] and IMHO a big rip-off overall for what they charge, esp. since ClamAV is free, and in active Enterprise usage.

Personally, Microsoft is under pressure from competition in all of these arenas, for the first time in... well, forever. I'm not suprised that they are actively seeking ways of trying to retain income by any means they can get away with.

/P
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Penguinisto Postings and Statistics
by Vegaman_Dan March 26, 2008 7:19 PM PDT
Of the three current stories on CNET, you posted in all three. At the time of this comment, there were 242 total messages of which you made 27. That's 11% of all postings on Microsoft stories were done by you alone.

Seriously, 11% of all the comments were by you and they were all negative. What does that say about the person posting them?
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Correction
by Vegaman_Dan March 26, 2008 7:22 PM PDT
UPDATE:


"Of the three current stories on CNET, you posted in all three."

I left out 'Microsoft' in that. Of the three Microsoft stories on CNET, you posted in all three. The other stories currently on CNET have no posts by you at all, so were not included in the statistics.
these jokers just slay me sometimes...
by i_made_this March 27, 2008 8:01 PM PDT
They're investing milions in researching a cheapo pack of their stuff that's available for free from others - free and of better quality.

Windows Live OneCare, Office Live Workspace, and Office Home and Student Edition. Whadda line-up, huh? I guess they shouldn't offer you this package for free on all new systems. That'd make too much sense.

Windows Live OneCare: AVG Free Anti-Virus and Anti-Spyware. Zone Alarm Free Firewall. Diskeeper Lite Free.

Windows Office: OpenOffice Free.

Well... nothin personal, Redmond. But sometimes the degree of cluelessness amazes me. How about a value pack of Vista Ultimate, Visual Studio 2008, Windows Live OneCare, Windows Office 2008? hmmm .. that bundle's worth an SRP of $200, right? lower??
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About Beyond Binary

During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft.


Beyond Binary is a look at how technology is changing our lives and the people behind all that life-changing stuff, with an extra emphasis on that which emanates from Redmond, Wash.

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