27 May Achieve Value from Your IT
Microsoft 365 have made some changes to their commercial price plans for 365. Of course, this was quite shocking for us all, especially considering that this is the first substantial price change since the birth of Microsoft Office way back in November of 1990.
Understandably, some people feel hard done by, because we have been through unsettling times that many are still trying to recover from and it seems badly timed to put prices up now, but to be fair to Microsoft, they do deserve it. Now, hear us out, because Microsoft have substantially increased the value that consumers get from their tools – if you really consider how wide their range of tools is, the changes that have been made over the last few decades, and the way that they have revolutionised workplaces across the world in the process, it is clear that they deserve something more for their efforts.
Why the price increase?
Greed is the first possible reason that comes to mind but this isn’t so in this case. Of course their bottom line – like in all businesses – is the most important thing, but there is more to it than that. Microsoft continues to push the value that they have added to their various product suites over the years as a valid justification of any increase in price, and they would be right – think of the Microsoft tools you use every day; I can guarantee they are more functional, easier to use, and are of better quality than they were in the past.
Value is, of course, subjective but I think the majority of users would agree that their suite of tools has increased in functionality over recent years and therefore increased in value. Obviously, there are financial motivations behind the price increase – they want to increase subscriptions and make more money like every business.
Microsoft aren’t the only Cloud providers raising their prices though. Most software companies have changed, so that they now focus on average revenue per user in an attempt to provide a service that reflects the level of subscription that the client is contracted to.
From inspection of the changes, it is clear that Microsoft are trying to guide you to a E5 or E3 bundle. The bundles are as follows.
- The E3 bundle – Comes with a full license to install the desktop version of Excel, Word, Outlook, OneNote, and Publisher.
- The E5 bundle – Offers the same tools as the E3 one but with Microsoft Advanced Threat Protection software that guards your company against malicious threats in email messages, attachments, and links.
Microsoft, of course, are business minded so are raising the prices in such a way that you are tempted to purchase the E5 bundle. The gap in worth between the E1 and E3 bundles is now much smaller, making the purchase of the E5 bundle the most cost-effective method. They have also cleverly brought the two prices of E3 and E5 closer together by increasing the price of E3 and keeping E5 the same, which in turn will make the E5 bundle seem better value and make people skip over the E3 bundle all together.
In the following article we will explore the Microsoft suite of tools and check that you are forcing as much value as possible from the features they have to offer, and, in turn, justify the rise in price.
Value From Your Tech
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