Shouldn't CoPilot make the thing cheaper? Less need for skilled developers, faster development cycles?
Microsoft increasing prices on a subscription product is an admission that their AI play is failing. The project sucks up money and yields none of the promised returns. Failure to deliver on development, failure to optimize datacenters, failure to reduce required staff in general.
Is there any reason to use Office nowadays except for being able to open documents sent by institutions where secretaries still use Word/Excel/PPT? (universities, etc.)
This feels like a dangerous game they're playing. Yes, there is some lock in, but competitors exist and are better than ever. The new "features" they're justifying this with (Copilot) isn't even something that most people want
While businesses definitely don't need all those features, I guess most use it for compatibility sake - to work with existing files and to collaborate with others who use MS Office.
What's current state of open-source alternatives that can work with the MS file formats?
Considering the last price increase was almost 4 years before this one goes into effect, most of those are pretty modest 1-4%/year increases. In line with inflation. The notable outliers are F1 and F3 which got a lot more expensive
Apparently F1 and F3 are "Office 365 for Frontline Workers". F3 is kind of like Office 365 Basic, F1 is stripped down to mostly read-only access plus Microsoft Teams
The price increases seem reasonable (from 6 to 7, 12 to 14, etc) given inflation. Have they been increasing prices frequently or am I missing something?
I have a family license and am more or less stuck with it, but for my business I will be moving things over to gsuite so I can be price gouged by them instead. It will cost more, but I’ll have Gemini, which is actually useful.
The last straw, aside from the price increases, was switching my office.com landing page to copilot. It feels like a new low, even for Microsoft.
You just lost $6/mo., Microsoft. I hope it was worth it.
If most companies had to for some reason revert to Windows XP and MS Office from 1998, they would barely be impacted. There is literally no benefit to this subscription model besides paying for what you already have and what you don't want. None of this stuff needs to be on the cloud even for bigger firms. For the I need/like X in Office 365, it's not worth it from a costs perspective.
I listened to the acquired podcast where they interviewed Steve Ballmer for a few hours. Very nice to get that perspective.
But he commented quite a bit on how office licensing changed and how that made MS filthy rich. Around Office 97 was when they started emphasizing getting the full office suite as a licensing option. Especially for companies this was a big deal because you would just get all the office applications; whether you needed them or not.
And then later around 2011 they figured out that companies really didn't like having to deal with having to buy a lot of office licenses every few years. So it became a yearly subscription instead and at that point the revenue increased again, a lot.
It's the progressive insight that transitioned MS from being windows OEM license dependent (office came with the PC) to being more dependent on recurring SAAS revenue. Companies actually prefer this model. Even though it costs them more.
I've been free from any MS licenses since I started working for startups on a mac. I occasionally use Google docs and gmail. But I haven't really done anything with Word, Excel, Outlook, Powerpoint etc. since 2012. You don't need any of that stuff to run a company. The rare case I deal with a customer that insists on that stuff, they can just give me access to the web version. Or send a PDF. Or one an office file that usually opens fine in drive.
Haven't opened Microsoft Office in I think 7 years. Haven't also used Apple's Office suite either - it is just Google Docs/presentations/sheets/drive for everything. I feel my life is better. They were massive installs and I prefer to have everything online all the time anyhow - just safer and more convenient.
They can set whatever price they want. Most customers have no choice but to pay; there is no competitor with anything approaching full compatibility or a similar feature set.
Companies like Microsoft and Adobe have maintained a business software monoculture for decades. Nobody has invested significant resources into competing products, just tiny companies and open source volunteers putting out niche alternatives. Microsoft could probably double their prices, and double the built-in advertising, and most customers would complain loudly and keep using them. Docx files, PSDs, PDF forms, etc with any complexity will only ever run properly in one corresponding proprietary application.
They also are actively decreasing the value by sunsetting Publisher in October 2026 [0]. Hilariously, the suggested replacement is PowerPoint, despite it being unable to natively open .pub files. The solution for that? Run a powershell script to convert all your publisher files to (uneditable) PDF.
There are many memes about inserting photos into Word, and the content flying around and breaking. My pet theory is that the younger generation never realized Publisher existed or was included in M365, and used PowerPoint as an everything-is-a-hammer crutch, and have now gotten jobs at Microsoft and are sticking with it.
Also, as far as I can tell, Publisher is the only application where the color-picker includes Pantone colors which is a must for professional poster production. I assume Microsoft is paying a licensing fee for this, and I wonder if they'll remember to cancel it.
Perhaps Affinity can eat their lunch and release a word-processor.
The worst part about MS Office isn't the direct user experience, because I can usually choose to use other software. The worst part is that I and everybody else are subjected to the documents that Office produces. Their defaults and their UX inevitably produce stuff that is hard to read and inconsistent, unless you fight the software really hard and make sacrifices with your desired output. And there's no escape from it. Another specimen of Word's 2.5 cm margins, 200-character lines in poorly designed knockoff Helvetica will probably find its way to my mailbox before the end of the day.
> They also are actively decreasing the value by sunsetting Publisher in October 2026.
You have my sympathy. I was also a frequent MS Publisher user, and I always felt that not many people knew about it. It's a useful, simple DTP package suitable for many less complex page layout scenarios. After the End-of-Support announcement, I switched to the LibreOffice Draw already. Fortunately, LibreOffice Draw works quite nicely as a Publisher replacement for me. There is also Scribus [1].
> My pet theory is that the younger generation never realized Publisher existed or was included in M365
For a very long time Publisher was marketed to home users who want to do some simple DTP work, and not to businesses. This is a very different audience than businesses.
I last used Publisher way back in the late nineties to lay out the school newsletter, later I graduated to PageMaker because I found Publisher easy to use but ultimately quite limiting. Fun memories, I hadn’t even realised Publisher still existed, and I’m the most elder of elder millennials.
I bought Microsoft Word, years ago, before it was "licensed". However, it auto-updated itself with my permission from time to time. A few weeks ago, I went to edit a document and was presented with a pop-up that said I needed to update my license fee in order to be allowed to make modifications to it.
This is doubly frustrating when Word is the standard for resumes.
The height of me using Microsoft Office in a personal capacity was when I was in school and university. I've been fine living out of Google Docs since then. At work, my company is a Google Workspace customer and I have to say I've come to enjoy the comment/live editing functionality of Google Docs more than Word.
At this point Microsoft office suite is practically a monopoly. Governments around the world rely on it. Every big enterprise and every business needs it.
The spec for office documents was authored by Microsoft( and approved by Microsoft!). The spec is basically the docx datastructure published publicly as a standard - which makes building competing office suites even harder.
Given the situation there isn't much customers can do if Microsoft decides to hike the prices anyhow they like.
Note: Indian Government recently adopted Zoho office suite to insulate themselves from Microsoft.
But I don't think many other governments or businesses have the guts to make such move.
110 comments
[ 3.4 ms ] story [ 89.5 ms ] threadMicrosoft increasing prices on a subscription product is an admission that their AI play is failing. The project sucks up money and yields none of the promised returns. Failure to deliver on development, failure to optimize datacenters, failure to reduce required staff in general.
Already moved all my usage away from MS…now just need to persuade rest of fam
What's current state of open-source alternatives that can work with the MS file formats?
Apparently F1 and F3 are "Office 365 for Frontline Workers". F3 is kind of like Office 365 Basic, F1 is stripped down to mostly read-only access plus Microsoft Teams
The last straw, aside from the price increases, was switching my office.com landing page to copilot. It feels like a new low, even for Microsoft.
You just lost $6/mo., Microsoft. I hope it was worth it.
But he commented quite a bit on how office licensing changed and how that made MS filthy rich. Around Office 97 was when they started emphasizing getting the full office suite as a licensing option. Especially for companies this was a big deal because you would just get all the office applications; whether you needed them or not.
And then later around 2011 they figured out that companies really didn't like having to deal with having to buy a lot of office licenses every few years. So it became a yearly subscription instead and at that point the revenue increased again, a lot.
It's the progressive insight that transitioned MS from being windows OEM license dependent (office came with the PC) to being more dependent on recurring SAAS revenue. Companies actually prefer this model. Even though it costs them more.
I've been free from any MS licenses since I started working for startups on a mac. I occasionally use Google docs and gmail. But I haven't really done anything with Word, Excel, Outlook, Powerpoint etc. since 2012. You don't need any of that stuff to run a company. The rare case I deal with a customer that insists on that stuff, they can just give me access to the web version. Or send a PDF. Or one an office file that usually opens fine in drive.
Companies like Microsoft and Adobe have maintained a business software monoculture for decades. Nobody has invested significant resources into competing products, just tiny companies and open source volunteers putting out niche alternatives. Microsoft could probably double their prices, and double the built-in advertising, and most customers would complain loudly and keep using them. Docx files, PSDs, PDF forms, etc with any complexity will only ever run properly in one corresponding proprietary application.
https://www.heise.de/en/news/Goodbye-Microsoft-Schleswig-Hol...
There are many memes about inserting photos into Word, and the content flying around and breaking. My pet theory is that the younger generation never realized Publisher existed or was included in M365, and used PowerPoint as an everything-is-a-hammer crutch, and have now gotten jobs at Microsoft and are sticking with it.
Also, as far as I can tell, Publisher is the only application where the color-picker includes Pantone colors which is a must for professional poster production. I assume Microsoft is paying a licensing fee for this, and I wonder if they'll remember to cancel it.
Perhaps Affinity can eat their lunch and release a word-processor.
[0] https://support.microsoft.com/en-us/office/microsoft-publish...
You have my sympathy. I was also a frequent MS Publisher user, and I always felt that not many people knew about it. It's a useful, simple DTP package suitable for many less complex page layout scenarios. After the End-of-Support announcement, I switched to the LibreOffice Draw already. Fortunately, LibreOffice Draw works quite nicely as a Publisher replacement for me. There is also Scribus [1].
[1]: https://www.scribus.net/
For a very long time Publisher was marketed to home users who want to do some simple DTP work, and not to businesses. This is a very different audience than businesses.
This is doubly frustrating when Word is the standard for resumes.
The spec for office documents was authored by Microsoft( and approved by Microsoft!). The spec is basically the docx datastructure published publicly as a standard - which makes building competing office suites even harder.
Given the situation there isn't much customers can do if Microsoft decides to hike the prices anyhow they like.
Note: Indian Government recently adopted Zoho office suite to insulate themselves from Microsoft.
But I don't think many other governments or businesses have the guts to make such move.