The Ultimate question: give Microsoft $2,000 or buy a new PC?

David Flynn
09 October 2006, 12:30 PM


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A mere $2,000 will buy you Microsoft's 'Ultimate' bundle of Vista and Office 2007, or a damned good dual-core desktop PC. Which would you choose?


With the release of local pricing for Windows Vista, we now know that the top-shelf Vista Ultimate package will set buyers reeling with its $751 price tag.

Now we're waiting for the other shoe to drop. That shoe, of course, is Office 2007, for which Microsoft plans a new 'Office Ultimate' version containing the 2007 builds of Word, Excel, PowerPoint, Outlook, Publisher, Access, OneNote, the Groove P2P virtual workspace and the more esoteric InfoPath XLM-based workflow platform.

While the company's outpost has yet to announce Aussie pricing for any edition of the supersuite, US pricing has already been revealed. Stateside punters will be asked to pony up $US679 for Office Ultimate 2007.

Although there's no equivalent megamix version of Office 2003, prices for other editions of Office 2007 are largely identical to their Office 2003 counterparts. For example, both the 2003 and 2007 'Standard' versions cost $US399, with the Professional packages parallel parked at $US499.

So let's do a quick exercise in mathematics. We can calculate the 'difference factor' in the US between Office Ultimate 2007 and Office Standard 2007 as 1.7 (that is, 697/399). And we know that, at least in the US, the prices for Office 2007 and Office 2003 are identical.

This means we can guesstimate the Australian price of Office Ultimate 2007 as being 1.7 times the local price for Office Standard 2003, which is $675. So that's 1.7 x $675... carry the 1... okay, are you sitting down?

Because the result is a whopping $1,149! And let's also remember that the when APC did a similar exercise to predict the local cost of Vista we actually came in around 10% under the final figure, so Office Ultimate 2007 could end up closer to $1,260.

Toss in Vista Ultimate and you're looking just over $2,000 for an 'ultimate' pairing of Microsoft's OS and productivity suite.

On the other hand, a few quick clicks at Dell's online store revealed that for about the same price you could pick up a Dimension 9200 desktop built around Intel's Core 2 Duo E6400 powerplant with 1GB of RAM, a 256MB ATI Radeon X1300 graphics card, 320GB hard drive, TV tuner card and 19in LCD display.

So, if you've got $2,000 to hand you can buy Microsoft's latest and greatest software platform, or a PC to run it on. I know which one I'd choose...


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Dan Warne:

Whoah.

One can't help but get the feeling that Microsoft is making up for lost time... or lost revenue in those six years it faffed around deciding what Vista was really going to be.

But still, does ANYONE buy Office at full-price retail? You'd be a complete nutcase to do so... surely Microsoft just comes up with these ludicrously inflated prices so people think they're getting a super-good deal when they pay $300 for Office with their Dell?

I mean, Microsoft WANTS Office bundled with hardware and sold through volume licensing deals, surely. If everyone is falling over themselves to get the good deal on the OEM licence copy, then they actually sell licences easily without having to put money into funding retail shelf space and sales staff.

Then again I guess a lot of people just pirate it.

29 February 2008, 8:29 PM (5 years ago)report abuse Send to a friend reply

David Flynn:

Well, I can't actually see who will buy Office Ultimate. Who on earth needs ALL that stuff, apart from selected top-tier enterprise IT admins who will be able to get the near-identical Office Enterprise under their discounted licensing scheme?

Interestingly, Microsoft is introducing a special OEM-only version of Office 2007 known as Office Basic (notice the near-identical nomenclature for Vista and Office 2007).

Office Basic sports Word, Excel and Outlook, and you can bet that system builders will be offered very keen prices on this... it might even overtake the woeful Works as the OEM pre-load package of choice, which Microsoft wouldlove if they could turn any decent portion of those customers into upgraders to a version of Office which gives them Publisher, PowerPoint et al.

29 February 2008, 8:29 PM (5 years ago)report abuse Send to a friend reply

Raindog:

MS dont want to sell off the shelf boxes anymore. Pre-loaded OEM versions on name brand black boxes is where they want you all to head. Particularly given the huge new demands there will be on hardware for all those new animated annoyances vista will bring. Spring $2K for software you may as well get a $3500 new box bundle instead while your plastic is still standing.
Name brand hardware will equal less support woes in MS eyes. And MS will price the bundled software accordingly to the big players.

MS's attitude is getting more and more like that of IBM each day. IBM was in a position no one though could be toppled even into the late 80's, and now?

Sit at the top and show contempt fo your marketplace and there is only one direction your companies fortunes will head.

Vista + straw = broken camel

Case in point, the verions of Office 2003 bundled with budget toshiba`s, that turn out to be 60 day trials able to be licensed for the budget offer of full retail price.

Now if that isn't contempt for the customer, I don't know what is!

Hasta tha Vista!

29 February 2008, 8:29 PM (5 years ago)report abuse Send to a friend reply

Tin:

Given the cost of Office 2007, and the cost of retraining due to the crazy new menu system... What business would "upgrade" to it?

Open Office should be easier to switch to than MS Office 2007. It just works more like Office than Office does.

As GMan says at the end of Halflife 1, "It's time to choose, Mr Freeman."

29 February 2008, 8:29 PM (5 years ago)report abuse Send to a friend reply

Guy:

This article - or at least the headline - is quite misleading in that you're suggesting an upgrade to Vista and Office will set you back the price of a new PC. I know, that's what headlines are meant to do, grab readers, but it looks like the comments you've got fell for it too.

In reality most people will be able to buy a new PC next year (and probably by Christmas) with the price of a decent version of Vista (Home Premium) thrown in. The same people for whom Home Premium is the ideal version of Vista will also not likely get any benefit from Office Ultimate (or whatever it will be called). As a professional myself, I hardly ever use anything other than the stadard Office apps (Word, Outlook, Excel and Powerpoint), and I have no doubt I'll be able to find a reseller offering me a Vista + Office bundle at a small premium on top of the price of a new PC.

So no, it's not going to be a choice between Vista and Office or a new PC for MOST people. Yes, it will cost money to upgrade, and you may well need a more powerful PC to run it all, but that's the price of progress.

What's the alternative, stick with our Pentium 4's and XP? Buy a Mac (and spend weeks on retraining and new software apps)? Linux isn't even an option for most consumers.

Why are people so afraid of progress?

gL

29 February 2008, 8:29 PM (5 years ago)report abuse Send to a friend reply

Tony Robinson:

Just two words "Open Office"

29 February 2008, 8:29 PM (5 years ago)report abuse Send to a friend reply

Hugh:

I guess they can afford to ask a ridiculous amount for Office, as most home users would get all the functionality they actually need from OpenOffice. Business and government can incorporate the cost much more easily.

This is really just a tax on users who don't know that there are alternatives.

29 February 2008, 8:29 PM (5 years ago)report abuse Send to a friend reply

anony Muse:

Wow. A great reason to get Home Premium and stay with Office2003.

29 February 2008, 8:29 PM (5 years ago)report abuse Send to a friend reply

Wes:

Most home users never use most of the features of the Standard Office version to start with and so they will never think of the Ultimate version or whatever it costs.

But from the pricing of both Vista and Office 2007 it looks like Microsoft are trying to make as much money as possible this time around.

29 February 2008, 8:29 PM (5 years ago)report abuse Send to a friend reply

Gill Baits:

Linux - There's nothing you can do on windows that can't be done on Linux.
DON'T BUY MICROSOFT PRODUCTS. It is simply a waste of time and money. The next few years will be the era of Linux and other TOP software.
Try it... You can even make it look like MS Windows - if you must.

29 February 2008, 8:29 PM (5 years ago)report abuse Send to a friend reply

Phil:

If computer magazine journalists and PC users didn't have Microsoft or Telstra to complain about on sites like this what wuold they do?????

Thanks god I visit but occassionally!

29 February 2008, 8:29 PM (5 years ago)report abuse Send to a friend reply

Patrick:

I have to admit the days of me buying any microsoft software are coming to an end. I can't see office 2007 offering me much more than xp or even 2000 for that matter. And open office as mentioned is a very viable alternative (even Base is quite a good database for smallish work).

And Vista- forget about it. I'm not buying a new PC to run Vista. I think it's Mac time...no matter how good Vista is, it'll still be a good generation behind OSX.

29 February 2008, 8:29 PM (5 years ago)report abuse Send to a friend reply

halcon:

The People working for Microsoft are outcasts, they should know nobody like the arrogant position of that company.
If the price is very high people will risk their skins and get pirated copies os the software.
for more Microsoft try to restrict the use of its software the people will try to circumbent it.
Open Office is a good alternative to office 2007 and moreover is free.
Linux is a good initiative but still has a long road to match the use and power of Windows; though is a very heroic move to offer Solaris Operating system for free, this Sun Micrososytems software is for computers that need a lot of power.
Mac OS X software is limited to Mac machines only, if Apple would extend it to the IBM and compatible machines, there could be a win-win situation here, one for Apple and one for the everyday PC user.
However, I see Apple is losing a very good opportunity to sideline Microsoft with its overpriced software products.
What is needed now is a great number of programmers to dedicate their noble efforts to make the open source software succeed over the giant monopolist that is Microsoft!

29 February 2008, 8:29 PM (5 years ago)report abuse Send to a friend reply

john:

"Then again I guess a lot of people just pirate it."

With such inflated prices by M$, its a sure bet that piracy will increase dramatically. Why the hell buy M$ at $600 or so when you can get Linux either for free or for $150 for the commercial versions?

29 February 2008, 8:29 PM (5 years ago)report abuse Send to a friend reply

halcon:

Again, if you see that Microsoft is charging too much for its software, is time to ditch out the filthy monopolist.
do yourself a favour, do not buy a Microsoft product until this company feel the heat of their disgruntled user base.
Microsoft does not deserve any respect because is doing a lot of harm to the pockets of everyone.
I will keep using Windows XP, I will not buy a Microsoft product anymore.
Is time for everyone to open the eyes and stop this abuse of power; don't buy a Microsoft product!

29 February 2008, 8:29 PM (5 years ago)report abuse Send to a friend reply

AJ:

In response to gL....
You sound like a real sucker to willingly pay inflated prices for no real benefit other than loyalty to a brand...

Watch out for anyone who knows a cheap deal on a harbour bridge.

29 February 2008, 8:29 PM (5 years ago)report abuse Send to a friend reply

Guy:

In response to AJ...

On the contrary, I'm merely saying that the pirces quoted here are hardly what end-users will likely pay, and frankly if they do, they should know better and do some homework.

I have no intention of upgrading to Vista (or a new PC to take advantage of its new technologies) until I feel my current PC is holding me back. At that point Vista will be the most logical upgrade, given the applications I use (photography and video editing). The only real alternative is a Mac, which would cost about the same in money but much more in time spent relearning the OS and apps.

Like it or not Windows has the best supported base of any OS, and the apps I use are optimised for Windows. Vista will simply be the best version of Windows available, and if you're clever, you'll know how to buy it a reasonable price (i.e. via OEM or with a new PC).

29 February 2008, 8:29 PM (5 years ago)report abuse Send to a friend reply

Marcel:

Forget Microsoft office:

http://www.openoffice.org/

I've used openoffice for years with no problems at all. I actually removed Office XP because it was such a resource hog. I use openoffice at a small internet cafe I run as well with a lot of success at no cost.

29 February 2008, 8:29 PM (5 years ago)report abuse Send to a friend reply

Dan:



Bill Gates came over here giving a few computers to poor people...
what a joke,your average income family will not be able to spend the 1900.00-3000.00 needed to get Vista and Office, not to mention the fact Vista needs an ugraded RAM to run.

I used to like Gates for wht he has acheived but now I feel he is a cretin of the highest order.

For now he has not only made a fortune bring computers to mainstream people, he now stands to make a fortune by taking computers away from them.



29 February 2008, 8:33 PM (5 years ago)report abuse Send to a friend reply

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