Microsoft's 'loss leader' Office 365 pricing strategy? NO THANKS

Microsoft’s advice to its channel partners to sell Office 365 as a loss leader to lure in small and medium sized customers is not something that sits well with suppliers, at least not in Blighty. Thomas Hansen, worldwide veep for Microsoft's Small and Medium Business organisation told attendees at the Asian Canalys Channels …

[Anonymous Coward]

"on-premise Office"

On what premise?

****.

[JP19]

Called bait and switch isn't it?

as title.

[Anonymous Coward]

Re: Called bait and switch isn't it?

Yes, but that is the norm with software on Windows.

[TechicallyConfused]

Oh Reeeeeeeeeally!

He said customers require training to increase usage of Microsoft’s online services and that comes at a cost. “Microsoft should want partners to do a better job of selling services, not going for the cheapest price.”

This is spot on yet funnily enough with O365 sales customers no longed get benefit awards or points as with other Select and Enterprise Agreements so no more training vouchers and other goodies when you buy into the cloud!

With one hand we taketh away and with the other we punch you in the junk!

[tempemeaty]

Crack Dealers....

Yeah, drug dealers like to give you the first hit for cheep/free. It's just a way to get you started. They know once you commit you'll then become to dependent on it to stop. (Just my worthless two bits)

[Mikel]

We are altering the deal.

Pray we don't alter it further.

[Gordan]

Re: We are altering the deal.

The quote that comes to mind is:

Darth Vader: Perhaps you think you're being treated unfairly?

[Anonymous Coward]

So, Microsoft is asking its partners to sell at a loss. Is Microsoft doing the same? Of course not, they make the money while their partners are asked to make the sacrifice.

[JMiles]

Theresa Connor, who works on US competitive strategy for productivity at Microsoft, said the "minute you engage in a price conversation it's very difficult to compete".

So... one mega corp (Microsoft) can't compete with another mega corp (Google) on price. Begs the question, are Google just more efficient at creating business applications? Or maybe its because Google don't rely on Google Apps to subsidise the rest of their empire.

[c:\boot.ini]

@JMiles

Beat me to it ... although was about to take it further ... Microsoft cannot compete with anybody on price, except maybe Oracle Database ... but then again, their Access daemon can barely hold up with anything on the market today, even if they offered it free of charge, shit, they already do ...

... the only reason you have Windows server is because you have office, which means you think you have to have Exchange, which, again, requires AD ... now, AD in the cloud, Office in the cloud ... what the F are you doing with Windows server in your data center ?

I know, AD and Exchange in the cloud is madness ... then again, if you have MS software, you are "one step beyond" help anyway.

[John Brown (no body)]

Upvoted for the musical allusion, although I ought to downvote you for putting that earworm in.

[P. Lee]

O365 is being sold as a loss leader

Hey all you O365 customers out there!

For how long do you think that state of affairs will continue?

Do ya feel lucky, punk?