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April 18, 2008 6:00 AM PDT

Microsoft plans Office subscription service

by Ina Fried
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Microsoft confirmed that it is planning a subscription service that combines the consumer version of Office with its OneCare security suite.

Code-named Albany, the product has a single installer that puts Office Home and Student, OneCare, as well as a host of Windows Live services, onto a user's PC. As long as users keep paying for the subscription, they are entitled to the latest versions of the products. Once they stop paying, they lose the right to use any version.

News.com Poll

Is a subscription service like Albany a more palatable option than the traditional means of getting Office?

Yes, this is more appealing.
No, I'd rather buy Office and own it the traditional way.
I'd rather not buy or rent Office and use a free alternative.



View results

The product is aimed at consumers that want a simple way to have access to Microsoft's productivity suite and keep their computer protected, Microsoft said.

"There is a customer segment that really enjoys this always-on, always up-to-date aspect of the service," Microsoft group product manager Bryson Gordon said.

Microsoft is planning to introduce a limited beta version of Albany in the coming days, with the aim of launching the product commercially sometime later this year, Gordon said. The company still hasn't decided on how much it will charge or how the product will be sold, he said.

In talking about the product, Microsoft did not refer to Google Docs by name, but I have said a subscription product might be Microsoft's way of trying to find a more palatable way of charging for Office amid stepped-up competition from free and online rivals.

By tying the Office subscription to OneCare, Microsoft is linking the purchase to one of the few areas where consumers have shown a willingness to pay for software--security. In this way, Microsoft can make the pitch to those buying security software that, for some extra dollars, they can always have the latest version of Office as well.

Those who subscribe to Albany will also get several free Microsoft products pushed onto their desktop--including online document-sharing product Office Live Workspace, Windows Live Messenger, Windows Live Photo Gallery, and Windows Live Mail.

Gordon argued that having all the products installed at one time is seen as a plus by the segment targeted by Albany, but he agreed that some users may not be interested in having so many Microsoft products foisted upon them. Office and OneCare will continue to be offered in traditional ways, he added.

Other products may be added in over time, he said, and Microsoft could also try the Albany approach for other market segments, such as small businesses.

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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Add a Comment (Log in or register) (19 Comments)
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Forgot one always
by tashman April 18, 2008 6:25 AM PDT
Always on, Always uptodate, er and ALWAYS PAYING.
Reply to this comment
Traditional Method is cheaper & Onecare.
by john55440 April 18, 2008 7:16 AM PDT
I bought Office XP in 2002, and am still using it. On a price-per-year basis, that's a very good value.

As for OneCare, it is a poorly rated product that I don't want on my computer. I use Norton Internet Security 2008.
Reply to this comment
NIS...truly terrible
by Maxwell Studly April 18, 2008 1:25 PM PDT
So you don't want OneCare on your computer because you believe it to be a poorly rated product but then you admit to using Norton Internet Security? Oh the irony...lol
Subscription Service
by Renegade Knight April 18, 2008 7:36 AM PDT
In a world where the automatic upgrade as a defacto subscription service is coming to an end, a subscription service is not going to work any better. It may buy time, maybe.

Most people would not subscribe to a typewriter, a tool box. Why would they subscribe to software? Buy it once and let the tool do the job. Your future software budget can buy more software tools.

This just illistrates why MS needs Yahoo more than vice versa.
Reply to this comment
Costs most to own SWS
by soggy0 April 18, 2008 10:37 AM PDT
Costs more money to own and maintain Shrink Wrap Software.

Online SaaS model is where's it at. Welcome to 2008
Yep. Pay for your software forever.
by Norseman April 18, 2008 11:49 AM PDT
What's not to love?
Why Pay of Office
by fitzgm3 April 18, 2008 8:12 AM PDT
Why would you pay for any office product. Use Google documents for free. If you are worried about google archiving and reading your docs download OpenOffice. It is free and most home/student (heck even business) users don't need more than this.
Reply to this comment
Why pay for junk when better is available for free?
by RJKay April 18, 2008 9:16 AM PDT
OneCare is a clearly inferior product. One need only go on the
internet and do a google search on anti-virus service providers
and "reviews"

So is LiveSearch.

Why pay for demonstrated mediocrity (a la Vista, Xbox,
WinMobile, etc.) when you can get much better services for free
from google.

There is a reason why google is so vastly more popular than
Livesearch. It is because the Redmond Bloatfarm cannot muscle
it way in via linking its other bloat apps to Livesearch.
Livesearch must live or die upon its strengths (almost none) and
weaknesses.

Office Subscription will be a failure because the underlying
assumption (that it is better than google apps or OpenOffice) is
false, showing that the bloat linkage breaks down.

Why pay for mediocrity and bloat when better is available for
free?
Reply to this comment
Geez...when is this money mongering going to stop?!!
by tekwiz4u April 18, 2008 11:00 AM PDT
I'm getting sick and tired of paying for online subscription services. For example, symantec does it with their virus protection product. You have to subscribe to get the latest virus definitions. Why? I want to pay for a product ONCE, and use it until I feel the need for an upgrade. And I want them to support it. Don't hold consumers hostage just because of greed.

Now that MS is thinking of moving to this ridiculous model, I will definitely start thinking of alternatives.
Reply to this comment
I still use Office 97
by bobby_brady April 18, 2008 11:33 AM PDT
Works for everything I need to do.
Reply to this comment
So does my work
by tashman April 18, 2008 12:11 PM PDT
Nobody has ever shown what function beyond office 97 they need.
Prediction
by jemiller0 April 18, 2008 12:44 PM PDT
Users just migrate to Linux and Open Office. Microsoft has gotten away charging exorbitant prices for long enough. Look what happened to all the DRM crap that Microsoft was trying to put into Vista. It lead nowhere. Windows Vista is the Windows Me of the 21st century.
Reply to this comment
Novices bring up DRM but rarely know exactly what they're referring to
by Maxwell Studly April 18, 2008 1:30 PM PDT
What DRM are you referring to that would keep you from doing something in other OS's that you can't in Vista?
Word 2000 came with 1999 Compaq puter...
by AppleSuxLeo April 18, 2008 8:34 PM PDT
Still works great. Buy smartphone , copy Outlook , return phone= Free Outlook !
Reply to this comment
Good job winner!
by kieranmullen April 18, 2008 11:21 PM PDT
Pretty sure the copy of outlook was not a gift to you.

Good job! You stole. You're a real winner.

KieranMullen
<a class="jive-link-external" href="http://360Oregon.com" target="_newWindow">http://360Oregon.com</a>
Would try it
by RTFT April 18, 2008 8:45 PM PDT
I am not sure why everyone bashes MS software. I have a couple of laptops at home that came preloaded with XP and Office and they work quite well.
Maybe I am not as technical as the others who have gotten Linux and/or OpenOffice to work and keep on working for you and integrate with everything else you can buy like cameras, new printers, read all your customer's files and load all the popular programs out there. I had limited success.
Isn't OpenOffice a Microsoft Office clone, so what can it do more, even if I spend the time to install and maintain it.
I understand that they are free but I have to download them and then figure out how to maintain and patch them as all software are buggy or are prone to viruses anyways. I have Windows Update download all the patches everynight at 3AM.
I just want to use the computer to do word pro, spreadsheets, and presentations, and manage my photos and music without being a whiz in computers, so Office as a service does sound interesting as I can now do this anywhere.
I guess what I am trying to say is I love to drive a car with warranty without being a mechanic.
To each their own, I guess.
Reply to this comment
Hard to maintain? Silence!
by kieranmullen April 18, 2008 11:18 PM PDT
How ridiculous! How hard is it to download one file and run it when done? It handles everything.

You cant do that with MS office. Microsoft has control over the operating system and still they still cant get the bloated office down to size.

Your comparison to having to install a program to being a mechanic is also flawed. Is opening a document considered being a mechanic? That is all that is required to install the program. Double click! No doubt you have done it before. Besides mechanics know how things work and are put together. Last time I checked you dont have to know how it works to use openoffice.org It just works.

FYI - I own one copy of Microsoft office XP
and on my other six machines open office.

KieranMullen
<a class="jive-link-external" href="http://360Oregon.com" target="_newWindow">http://360Oregon.com</a>
Offer Office by itself
by AlanK3000 April 21, 2008 11:26 AM PDT
I understand what they are trying to do by bundling OneCare and other services with Office, but I think if they offered a lower-cost subscription service for just Office by itself, they'd get a lot farther.

Most people already have anti-virus and other security software, so getting OneCare with Office isn't really going to make much sense.
Reply to this comment
by Sherman-Homan July 2, 2008 10:00 AM PDT
I don't know how Microsoft is going to figure this one out. However, most large companies are not going to trust the security of googledocs and outside of this forum, most users don't even know about OpenOffice.
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About Beyond Binary

During her years at CNET, 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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