Office 365 and Office 2013 Pricing Announced

Office moving to a subscription model

Microsoft released the Office 2013 pricing and updated the pricing on Office 365, the subscription model.  All of the prices have increased from Office 2010.  Office Home and Student 2013 is $139 and includes Word, Excel, PowerPoint and OneNote.  For an additional $80, you get Outlook with Office Home and Business (total cost = $219).  Office Professional is $399 and includes all of the above, plus Access and Publisher. Office 365 Home Premium will cost $99 per year.  It includes 20GB of SkyDrive storage, 60 minutes of Skype calling per month, and access on five devices at any time, with the ability to change out the devices at any time.  You can also use the “full featured apps” temporarily on any PC. There is a thirty day free trial available.  Office 365 Small Business Premium will cost $149 per user, per year.  That includes all the apps, but lets each user install it on up to five different devices.  It also includes online meetings and even website hosting, 25GB Outlook storage, an organization-wide 10GB cloud drive, and 500MB for each user.  Both versions of Office 365 which promise customizations that follow their users around, expanded cloud storage, access to all of the apps, and automatic  updates.

The official press release from Microsoft, with examples of how the Office 365 and Office 2013 pricing works:

Family Example
The Jones family has a kitchen PC. Susan, the mother, has a Mac, and Jason, the father, has a PC and plans to get a new Windows 8 tablet. Their daughter has a PC for school. Historically, they’ve upgraded their devices and Office every 4 years, so we’ll use a 4 year subscription window.

A subscription costs $399.96 for four years. By contrast, they would have to spend $699.95 to equip all five of their devices with Office Home and Student 2013. With a subscription, the Jones save $299.99, and they get the following additional benefits:
Outlook, Access and Publisher
Additional SkyDrive storage – a $40 value ($10/year for 4 years)
Skype credit – a $119.52 value ($29.88/year for 4 years)
Office on Demand, which allows subscribers to access the full, rich Office experience from any Internet-connected PC
New service updates and product upgrades

Device Lover Example
Rachel has a PC at work and a Mac at home and is getting a new Windows 8 Pro tablet. She uses them all for work, so needs Outlook on them all. Historically, she’s upgraded her devices and Office at least every 4 years, so we’ll again use a 4 year subscription window.

With a subscription, she’ll pay $399.96 over four years. Equipping her three devices with Office Home and Business 2013 would cost $659.97. She saves $260.01 with a subscription and gets the following additional benefits:
Access and Publisher
Additional SkyDrive storage – a $40 value ($10/year for 4 years)
Skype credit – a $119.52 value ($29.88/year for 4 years)
Office on Demand, which allows subscribers to access the full, rich Office experience from any Internet-connected PC
New service updates and product upgrades

Traditional Example
David is retired and wants to downsize his life. He has one PC to keep track of his finances and stay connected with family and friends through email.

David usually upgrades his software every five or more years. Paying the subscription price over those five years would cost David $499.95. In contrast, with Office Home and Business 2013, he’ll pay $219.99 to install Word, PowerPoint, OneNote, Excel and Outlook on his PC.

The traditional model won’t provide David the ability to install Office on multiple devices, to use Office on any PC or to continuously upgrade to the newest versions, but it best fits the way he uses his computer and Office.

Office 2013 Pricing comparisons - all that nerdy stuffFor those of you that prefer seeing the differences in visual form, here is a chart showing the cost of a five-year ownership, per license, based on the product bought and the number of users.  As you probably notices, Office 365 Home Premium is the least expensive option once you need four or more licenses.

If you can’t wait, buying Office 2010 or Office 2011 for Mac on or after October 19th gives you a free upgrade to Office 2013 or one year of Office 365 once it’s released.  Want to try it out right now?  Download the preview version for free.

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