Microsoft opens Office door for employees after hours

By RICHARD WOOD

From September, Microsoft will allow certain corporate and Government organisations to let employees use Office software at home for free.

A rough estimate by the Herald puts the number of home users who could benefit at 250,000, which would make the offer worth up to $300 million in New Zealand.

The giveaway software is part of a package of sweeteners for businesses that buy through Microsoft's Software Assurance licensing scheme - customers who pay annual fees of 25 to 29 per cent of the purchase price in return for the right to software upgrades.

Microsoft acknowledged that it had done a poor job introducing the new regime and said the additions were a result of listening to customers. It denies that the home-use deal is a response to competitive pressure from the likes of Star Office and Open Office. But considering the large price gap between Microsoft and competitors, it is bound to help.

To date businesses have been able to get discounts according to volume for Office but unable to let employees take it home.

Office XP Standard retails at $1239. Office XP Professional Academic costs $279 for education and tertiary student customers.

The competition include the free-to-download Open Office software, and Sun Microsystems' Star Office, which costs $200 for a single-user licence and is free to the education community.

Business buyers of Star Office are already allowed to use its package at home on one PC.

Microsoft also expects its home-use offer to reduce software piracy among eligible users, as many home users will be able to legitimise at no cost.

Other changes to Software Assurance include employee purchasing discounts, business-hour telephone support for server software, training vouchers, e-learning resources, and web support.

The home-use software will be distributed from a web store with a small handling charge, and eligible users will also receive discounts on other software such as games.

Schools in New Zealand already have a deal with Microsoft allowing teachers and staff to use a range of desktop software at home provided it is for work purposes.

Microsoft New Zealand is looking at the effect the Software Assurance enhancements will have on other licensing arrangements, such as those with the Ministry of Education.