Microsoft's decision to discontinue OneCare in favor of a new free antivirus product also means an end to Equipt, a $69-per-year subscription version of Office and OneCare that the company had been selling on the shelves of Circuit City.
A box shot of the Equipt product, which only briefly has graced Circuit City's shelves.
(Credit: Microsoft/Circuit City)The copies will be headed out of retail stores in the coming weeks, although the subscription will run through some time next year. But since Microsoft plans to offer free licenses of Office to Equipt customers when their subscriptions end, those existing copies look like a pretty good deal for those who need Office Home and Student--the version of Office included in Equipt.
The company had announced Equipt as something tailored for so-called "tech benches"--services like Best Buy's Geek Squad. However, in the U.S., Circuit City was the only retailer that had started selling Equipt.
Microsoft had hoped to capitalize on the fact that people were already buying subscription security software to upsell them on Equipt. But with Microsoft now planning on giving away security software, that opportunity appears to have gone away.
"It was a very difficult decision for us to shut down Equipt but the fact of the matter is there is this higher order need (to offer free antivirus software)," said group product manager Bryson Gordon. Gordon declined to say how many Equipt subscribers there are, but said the product had met internal sales goals.
"The decision to end-of-life Equipt was not in any way based with sales performance," he said.
Equipt, initially known by the code name Albany, is unlikely to be the last Office subscription service, particularly as Microsoft moves into Web-based versions of its productivity software. The company has also sold prepaid Office subscription cards in some countries.
"What we really are going to turn our attention to is other places where we can build a software plus service offering of Office like we sold on a subscription basis," Gordon said.
As for existing Equipt subscribers, they not only will get a free license to Office Home and Student, they can also call and cancel their subscription, get a pro-rated refund and still get the copy of Office. Gordon said that Equipt buyers tended to be Microsoft's early adopters and said that "We really want to make sure they are taken care of."
The welcome screen for the new Equipt offering lists the products and services available.
(Credit: Microsoft)If you are looking for "Albany," you might want to try heading to Circuit City.
Microsoft on Wednesday announced that Circuit City will be the first to offer a new Office subscription service, first known by its Albany code name and now dubbed Equipt.
The idea behind the subscription service is to convert more new PC buyers into Office buyers. It plays on the fact that although most people don't buy Office at the same time as a computer, many do purchase a security software subscription.
Microsoft is trying to tap into the fact that while many people would rather find a copy of Office that they don't have to pay for (either an older version or a pirated copy) they are willing to pay for security software. "Security is basically the No. 1 thing that gets attached with a PC," said Microsoft group product manager Bryson Gordon.
Equipt bundles a subscription version of Office Home and Student with Microsoft's OneCare antivirus product for $69 a year--just $20 more than the suggested price of OneCare alone.
On the main page of the Equipt subscriber center, users can see their subscription status and make changes to their account.
(Credit: Microsoft)Gordon said some less sophisticated users think they are getting a copy of Office as part of their PC purchase and are disappointed when they come home and find only a trial version of Office. "That's when a lot of folks will start digging through the drawer for (an old copy)."
Although Equipt is starting out at Circuit City, the deal is nonexclusive and Gordon sees options to go beyond stores and beyond the U.S. Gordon said Microsoft expects to expand to other retailers later in the year and eventually to offer it through other means, such as through computer makers or over the Web.
In addition to placing Equipt on retail shelves, Microsoft is also looking for it to be installed by so-called tech benches, the generic name for things like Best Buy's Geek Squad.
Also, for now at least, there is no way to upgrade from a OneCare subscription to Equipt, though Gordon said that may be in the cards.
"It makes a lot of sense so it's something you will likely see," he said.
I was curious just how Microsoft accounts for the revenue it expects to get from Equipt--i.e., how much gets counted toward Office and how much toward OneCare. Gordon wouldn't say, other than to indicate it would be wrong to think that the Office unit only gets the $20 difference between Equipt and OneCare.
Gordon said the company's research indicates that those who opt for Equipt will be people who would not otherwise buy Office, but added "we are going to keep a very close watch on cannibalization metrics."
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