Microsoft to sell Office 'value pack' for $70 per year

By Elizabeth Montalbano, IDG News Service |  Software, Microsoft, office suite 1 comment

Microsoft has chosen the name "Equipt" for a forthcoming package of products that includes its Office suite, Internet security software and other services, and will sell it for an annual subscription fee of US$69.99.

Equipt, which was formerly known by its code name, Albany, includes Office Home and Student 2007, Windows Live OneCare, Office Live Workspaces, Windows Live Mail, Live Messenger and Live Photo. Microsoft plans to begin selling it in the U.S. on July 15 through Circuit City, with other outlets to follow. It will be offered in other countries at about the same time, though pricing elsewhere was not announced.

The name comes from the idea that the package will help customers "equip their PC with a core set of services," said Bryson Gordon, a group product manager for Microsoft Office. "It resonated well with customers in testing."

Indeed, the name is more succinct than Microsoft has used for some other Office products, including unwieldy names like Microsoft Office Professional Plus 2007 and Microsoft Office Outlook with Business Contact Manager.

Rumors began circulating in March that Microsoft was devising a new way of packing Office to help it better compete with Google Docs and other free or low-cost productivity suites. The company sent out invitations to a select few, asking them to test a mysterious new project code-named Albany.

The company asked people to sign nondisclosure agreements just to sign up for the test. In April, Microsoft confirmed the products that would be available in the package.

Gordon played down the effort to compete with Google Docs and other free office suites, such as IBM Symphony. He said Equipt is aimed at people who are interested in purchasing a PC security suite -- such as Windows Live OneCare -- and might forgo buying Office as well in favor of using an older copy they might already have, or that they might pirate. "We're lowering the barrier to entry" for those customers, he said.

Because Equipt is such a "complicated value proposition" to understand, Microsoft is selling it first through Circuit City because the store's staff has been trained to explain it to customers, and because it has successfully handled other Microsoft product campaigns, Gordon said.

Microsoft determined the $69.99 subscription rate by taking into account the pricing for Windows Live OneCare, which costs $49.99 a year, and the pricing for Office Home and Student 2007, which has a one-time license fee of $149.99, Gordon said. It also took input on pricing from the beta testers, he said.

Customers can load Equipt on up to three PCs for the yearly subscription fee.

SMS: Microsoft will charge $69.99 for its new Equipt software package, which includes Office, Live Care and other services.

1 comment

    Anonymous 3 years ago
    If this is to begin in July, is Circuit City going to re-open stores. As of today 2-1-09 Circuit City Stores are liquidating all product and closing. Perhaps this was a misprint or planned months ago? Sounds a bit like someone doesn't know what is going on.

      Add a comment

      Post a comment using one of these accounts
      Or join now
      At least 6 characters

      Note: Comment will appear soon after you have activated your account.
      Obscene/spam comments will be removed and accounts suspended.
      The information you submit is subject to our Privacy Policy and Terms of Service.

      ITworld LIVE

      SoftwareWhite Papers & Webcasts

      White Paper

      Best Practices Guide: Microsoft Exchange 2010 on VMware

      This guide provides best practice guidelines for deploying Exchange Server 2010 on vSphere.

      White Paper

      Free Trial: vRanger, the Powerful VMware Recovery Solution

      When disaster strikes, don't waste hours and dollars recovering critical data. vRanger delivers blazing-fast speed and granular recovery for your VMware applications and data. Get your free trial today.

      White Paper

      Executive Guide to Business and Software Requirements

      This paper is designed as an executive briefing on the issues surrounding business and software requirements. It features a wealth of statistics and tactics to help you get requirements right, and includes a tear-out single page summary.

      White Paper

      How to Launch a Successful IT Automation Initiative

      Corporations across all industries are under increasing pressure to cut costs and work more efficiently. In the race to meet both of these requirements, many organizations turn to technology, often purchasing and installing disparate pieces of software in hopes of achieving efficiencies not afforded by manual systems.

      White Paper

      Why Corporations Need to Automate IT Systems Management

      With corporate budgets being slashed and leaders expecting more out of their employees, companies are forced to do more with less, yet are still expected to provide the highest quality experience to customers. This is pushing them to make better use of their IT assets without breaking the budget. Companies are under more pressure than ever, thanks to data management regulations; increasingly complex security threats; and growing demand from management and end users for 24/7 uptime and high performance. These hurdles require a strategic investment in technologies that boost efficiency, save money and position IT as an integral part of the entire firm's operations. IT systems management is helping corporations fill these gaps.

      See more White Papers | Webcasts

      Ask a question

      Ask a Question