Wednesday, July 22, 2015

Office 365 prices look like they're set to increase on the 1st of August.

When I talk to clients about Office 365 we always discuss the rent versus buy option. I don't sell software but it is important to clients to know their options. Regularly I see clients still using Office 2007 and a few using even older software. If you've had Office 2007 then you've been using the software for 7-8 years and that's great value for money.

When you consider renting, subscribing, or whatever they choose to call it, you need to keep in mind it's a yearly amount that doesn't stop because let's face it, if you stop paying you can't edit your files.

I used to think the break-even point was around two and a half years, but then I realised Microsoft charges you from day one and the first renewal is in 12 months. After two years you've more than likely paid more for your software than you used to.

I tend to think the real pain point will come not at the start, or whilst you're paying for the software, but when you decide you no longer need to use the software. It will be at that point you'll feel very much locked in.

The article is a reminder of just how easy it is for prices to be increased once you have your audience locked in.

I often wonder how many businesses could still be using Office 2003/Windows XP if it was still supported. I've seen government departments and corporates still using older software. Eventually they'll have to move on but gee, they've certainly got value out of their software and hardware.

In the end it really is simply a financial decision. Do your numbers and decide what's best for you now and in the future.

Kelvin Eldridge
Call 0415 910 703 

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