- Feb 14, 2004
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I do a variety of computer-related stuff for businesses, including purchasing & installing software. Sometimes it's for small business (under 10 people) & sometimes it's for larger small businesses ("midsize", say 100 to 300 people). I'm trying to wrap my brain around how Office for Business licensing works for the 2013 version. It makes no sense to me. So let's start out with the core software - Microsoft Home & Business 2013, which includes Word, Excel, PowerPoint, OneNote, and Outlook (the basic Business version doesn't include Publisher or Access). The license terms right on their product page are "For a single PC - Install Office on one PC at a time. Commercial use rights."
http://office.microsoft.com/en-us/buy-microsoft-office-home-business-2013-FX102918379.aspx
So let's start out with off-the-shelf pricing. Amazon sells the "1 PC/ 1 User Download" version for $219:
http://www.amazon.com/Microsoft-Offi...dp/B00B1TGMIS/
I believe this used to be the CD purchase version up until just recently. This is the product that comes up when you search Amazon (or Staples) for "Office Business 2013". So - it was a CD product, now is a Download product. Great. Except that you can also buy the Keycard version, which was the original downloadable, no-CD option. For $169. Which is $50 less. For the same product (both of which are now download-only). Here's a screenshot of both:
http://i.imgur.com/BzOrO6g.jpg
Now, before I get more into pricing, let's discuss registering the Keycard version. With the Keycard version, you are required to create a Microsoft Account online & punch in the license code, which will then tie the license to your account. So then you can just login, download the installer from the cloud, and be good to go:
https://office.microsoft.com/MyAccount.aspx
The problem is, it typically doesn't list the license keys. For example, in this business account, I have two Office for Business licenses, but you can't tell which one to download:
http://i.imgur.com/v3Eg6f3.jpg
In this one, one license key is shown, but the rest are not:
http://i.imgur.com/fQlYrK9.jpg
There's also no way to check activation status, so it's a fairly limited system because you can't verify which link to download if you need to do an OS re-install & put Office back on a machine. It doesn't make any sense to sell a Business version that requires online activation, but not be able to manage it. You can tie it to a specific user (ex. create a Microsoft account for the user, activate the license against them, and only have a single download link available - and you keep a record of what that key is for future re-installs), but that's a crummy method because then you're screwed if the person leaves the company (you have to keep on using their account, or changing the primary email & going through all that jazz for re-registration).
So anyway, back to the financial discussion. In the past, you would buy a Volume license for larger projects. Those are called Open Licenses now and have a bit more flexibility as far as being able to be installed on Terminal Servers & such. And of course, there are tiers within that system as well:
http://www.microsoft.com/licensing/licensing-options/open-license.aspx
But anyway, a basic Business Open License is $369:
https://www.cdw.com/shop/products/Microsoft-Office-Standard-2013-license/2894649.aspx
So now we're jumping up from $159 to $369 for the same product, just with better management abilities & some additional features like software assurance for upgrading. So that's a $210 premium per license for the same product, which isn't something everyone really needs depending on the size of the business.
Then there's a new system called Office 365, which is essentially a subscription to Office, with some added cloud services. This is sort of the next-level to Volume/Open licensing that Microsoft wants to shove everyone into, because it keeps the revenue stream coming in on a monthly basis. Each user costs $15 a month, or $150 annually if you pay ahead (reduces the monthly average to $12.50):
http://office.microsoft.com/en-us/b...siness-premium-office-online-FX103037625.aspx
So basically, you can get a year's worth of Office for $150, or you can simply buy an Office Business 2013 Keycard for $159, which is only $9 more. Now, that's pricing for smaller businesses with a max of 25 users. If you need more (up to 300 users), Office 365 for Midsize Businesses runs $15 per user per month; the Enterprise E3 subscription offers unlimited users for $20 per user per month. There's a better pricing comparison for business usage here:
http://office.microsoft.com/en-us/b...ffice-365-for-business-plans-FX104051403.aspx
I'm not licensing expert, so I figured I'd throw it out there & ask: what am I missing here? This is so convoluted it's making my brain hurt. To recap:
1. Office 2013 Business "Download": $219 (previously a CD version, I believe)
2. Office 2013 Business "Keycard": $169 (...also download, so what's the point of #1 now?)
3. Office 2013 Business Open License: $369 (previously "Volume License", note that tiers are available)
4. Office 2013 Business "365 Subscription": $150 annually (minimum - more if you need more than 25 seats)
I like the management options of the Open License; for purchased (not subscribed) licenses, it's really "the way" to go. I talked to a Microsoft rep about managing the download versions and they said that having multiple licenses under the Microsoft Account isn't really the way it's supposed to be used, but wasn't able to explain why you could buy a Business license & not manage it easily, let alone have two versions available for sale (Download version + Keycard version). So apparently it's so complicated they have no idea how it works either
http://office.microsoft.com/en-us/buy-microsoft-office-home-business-2013-FX102918379.aspx
So let's start out with off-the-shelf pricing. Amazon sells the "1 PC/ 1 User Download" version for $219:
http://www.amazon.com/Microsoft-Offi...dp/B00B1TGMIS/
I believe this used to be the CD purchase version up until just recently. This is the product that comes up when you search Amazon (or Staples) for "Office Business 2013". So - it was a CD product, now is a Download product. Great. Except that you can also buy the Keycard version, which was the original downloadable, no-CD option. For $169. Which is $50 less. For the same product (both of which are now download-only). Here's a screenshot of both:
http://i.imgur.com/BzOrO6g.jpg
Now, before I get more into pricing, let's discuss registering the Keycard version. With the Keycard version, you are required to create a Microsoft Account online & punch in the license code, which will then tie the license to your account. So then you can just login, download the installer from the cloud, and be good to go:
https://office.microsoft.com/MyAccount.aspx
The problem is, it typically doesn't list the license keys. For example, in this business account, I have two Office for Business licenses, but you can't tell which one to download:
http://i.imgur.com/v3Eg6f3.jpg
In this one, one license key is shown, but the rest are not:
http://i.imgur.com/fQlYrK9.jpg
There's also no way to check activation status, so it's a fairly limited system because you can't verify which link to download if you need to do an OS re-install & put Office back on a machine. It doesn't make any sense to sell a Business version that requires online activation, but not be able to manage it. You can tie it to a specific user (ex. create a Microsoft account for the user, activate the license against them, and only have a single download link available - and you keep a record of what that key is for future re-installs), but that's a crummy method because then you're screwed if the person leaves the company (you have to keep on using their account, or changing the primary email & going through all that jazz for re-registration).
So anyway, back to the financial discussion. In the past, you would buy a Volume license for larger projects. Those are called Open Licenses now and have a bit more flexibility as far as being able to be installed on Terminal Servers & such. And of course, there are tiers within that system as well:
http://www.microsoft.com/licensing/licensing-options/open-license.aspx
But anyway, a basic Business Open License is $369:
https://www.cdw.com/shop/products/Microsoft-Office-Standard-2013-license/2894649.aspx
So now we're jumping up from $159 to $369 for the same product, just with better management abilities & some additional features like software assurance for upgrading. So that's a $210 premium per license for the same product, which isn't something everyone really needs depending on the size of the business.
Then there's a new system called Office 365, which is essentially a subscription to Office, with some added cloud services. This is sort of the next-level to Volume/Open licensing that Microsoft wants to shove everyone into, because it keeps the revenue stream coming in on a monthly basis. Each user costs $15 a month, or $150 annually if you pay ahead (reduces the monthly average to $12.50):
http://office.microsoft.com/en-us/b...siness-premium-office-online-FX103037625.aspx
So basically, you can get a year's worth of Office for $150, or you can simply buy an Office Business 2013 Keycard for $159, which is only $9 more. Now, that's pricing for smaller businesses with a max of 25 users. If you need more (up to 300 users), Office 365 for Midsize Businesses runs $15 per user per month; the Enterprise E3 subscription offers unlimited users for $20 per user per month. There's a better pricing comparison for business usage here:
http://office.microsoft.com/en-us/b...ffice-365-for-business-plans-FX104051403.aspx
I'm not licensing expert, so I figured I'd throw it out there & ask: what am I missing here? This is so convoluted it's making my brain hurt. To recap:
1. Office 2013 Business "Download": $219 (previously a CD version, I believe)
2. Office 2013 Business "Keycard": $169 (...also download, so what's the point of #1 now?)
3. Office 2013 Business Open License: $369 (previously "Volume License", note that tiers are available)
4. Office 2013 Business "365 Subscription": $150 annually (minimum - more if you need more than 25 seats)
I like the management options of the Open License; for purchased (not subscribed) licenses, it's really "the way" to go. I talked to a Microsoft rep about managing the download versions and they said that having multiple licenses under the Microsoft Account isn't really the way it's supposed to be used, but wasn't able to explain why you could buy a Business license & not manage it easily, let alone have two versions available for sale (Download version + Keycard version). So apparently it's so complicated they have no idea how it works either