Microsoft pays customer $250,000 to use Office 365

By , Network World |  On-demand Software, Microsoft, Office 365

"It is estimated that the annual operating costs associated with delivering an e-mail service can be reduced by more than 50% from the current cost, which is just under $1 million," the university says. "There will also be one-time upfront costs associated with migrating current Lotus Notes accounts to a new system, rewriting some applications and providing training, but significant savings will be realized over the long term." Nebraska will start the migration in the fall and finish by summer 2012.

Office 365 for educational customers includes Exchange, SharePoint, Lync and Office Web Apps, and costs $10 per month for each faculty and staff member, but is free for students. Office desktop software can be purchased for another $14 per month for faculty and staff, or $2 for students.

Those are list prices, of course, and can be negotiated downward. (See also, Microsoft's cloud licensing changes: what you need to know)

When contacted by Network World, Microsoft would not reveal details of the program that Nebraska used to get $250,000 in incentives.

"MSFT does not disclose terms of individual customer deals," a company spokesperson said in an email. "We do however, support a variety of programs designed to help customers adopt and deploy our solutions."

Follow Jon Brodkin on Twitter: www.twitter.com/jbrodkin

Read more about software in Network World's Software section.


Originally published on Network World |  Click here to read the original story.
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