November 6, 2014

NOTHING COSTS MORE THAN IT USED TO:

Microsoft Makes Office Free for Mobile (Joshua Brustein, November 06, 2014, Business Week)

In March, Microsoft (MSFT) required anyone who wanted to create or edit documents on their iPads to buy a $99-a-year subscription to Office 365. People without subscriptions could use the apps to read documents but not to create or edit them. Now people will have full use of the programs for free; Microsoft will still charge for advanced features such as unlimited storage and Dropbox integration.

The model for many new software companies, especially on mobile, is to draw huge numbers of people with basic services, then rely on a group of core users to pay for features that are needed only for heavy use. Microsoft's traditional software strategy has been the opposite: It makes software, and everyone pays to use it. But the company apparently decided that the only way to compete against free was to be free itself.

Posted by at November 6, 2014 8:42 PM
  

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