Microsoft Office 2010: Give it to make more profit

Microsoft is implementing a strategy to sell new Office, which is for this software in the hope of making more money. Office 2010 version will have some free options for users .

In addition to the free Office web application package, Microsoft also provides manufacturers with a simple version of Office to install on a new PC. This new Office Starter program also includes a streamlined version of Word and Excel. All are free.

So where will the money come from? PC makers, retail stores, and Microsoft will make a profit if PC users then upgrade from the free (limited-edition) Office version to the commercial Office version (full-featured). Microsoft's point is to first let users familiarize themselves with Office, and then it is time for people to feel indispensable and will have to spend money on it.

This is indeed Microsoft's '5-to-5-lose' strategy, because most of Microsoft's billion-dollar revenue is now generated from Windows and Office. Most of Office's revenue comes from business customers, and Microsoft is trying to dominate its personal customer base, and wants to compete with free apps like Google Apps.

According to Microsoft estimates, about 80% of new computers sold to the market after the appearance of Office 2010 will be preinstalled with Office Starter version. Microsoft also provides stores with more advanced options. In addition to the retail version of Office 2010, there will be another upgrade option, the 'product key card' (product key cards). It is a small plastic card like a credit card, on which there are codes for new PC buyers to upgrade Office 2010 later.

This is a cost-effective solution. Instead of having to produce product packages (DVD Office), Microsoft just prints the code cards, which are convenient, compact and economical. Meanwhile, retail stores and agents do not need storage space to arrange DVD boxes containing Office 2010 software, but only need an area small enough to contain code cards.