• Enjoy the freedom to innovate and grow your business


    [ad] With Microsoft Azure you have hybrid cloud flexibility, allowing your platform to span your cloud and on premise data centre. Learn more at microsoftcloud.com.

  • IT Admin: No Time to Save Time?


    [ad] Do you spend too much time patching machines or cleaning up after virus attacks? With automation controlled from a central IT management console accessible anytime, anywhere – you can save time for bigger tasks. Try simple IT management from GFI Cloud and start saving time today!

  • Free Forrester analysis of CRM solutions


    [ad] In this 25 page report, independent analyst house Forrester evaluates 18 significant products in the customer relationship management space from a broad range of vendors, detailing its findings on how CRM suites measure up and plotting where they stand in relation to each other. Download it for free now.

  • Great articles on other sites
  • RSS Great articles on other sites


  • Reader giveaway: Google Nexus 5


    We’re big fans of Google’s Nexus line-up in general at Delimiter towers. Nexus 4, Nexus 7, Nexus 10 … we love pretty much anything Nexus. Because of this we've kicked off a new competition to give away one of Google’s new Nexus 5 smartphones to a lucky reader. Click here to enter.

  • Featured, News - Written by on Wednesday, June 29, 2011 12:44 - 16 Comments

    Up to 76% more: Australia’s raw Office 365 deal

    Global software behemoth Microsoft has jacked up the prices of its flagship cloud productivity suite Office 365 for the service’s launch in Australia, listing local prices up to 76 percent higher than the exact same service will cost in the United States.

    Office 365 is Microsoft’s answer to Google Apps. For a small monthly fee on a per-user basis, customers will be able to access a host of online services which mirror Microsoft’s desktop software, ranging from a popular online version of its Outlook/Exchange collaboration suite, to online versions of Microsoft Word, Excel, SharePoint, Lync and more.

    However, Australians will pay a great deal more than US customers for the exact same software.

    In the US, Microsoft will charge US$6 per month per user for the software — or US$72 a year. In Australian dollars, at current conversion rates, that fee would be AU$5.70. However, in Australia, Microsoft will charge customers AU$7.90 — a fee 38.5 percent higher than the equivalent US fee. And the markups increase if you buy more complete Office 365 enterprise packages from Microsoft — with the third-tier package going for AU$40.10 per user per month — or 76 percent more than the US$24 version.

    A Microsoft spokesperson could not immediately comment on the price hike.

    It’s not the first time Microsoft has upped its prices for products which are sold in exactly the same models in the US and in Australia. For example, when the company launched its Windows 7 operating system locally in late 2009, locals paid between AU$50 and $150 for the exact same software.

    “Our prices vary by region and are determined based on a variety of market specific factors including, but not limited to exchange rate, local taxes, duties, local market conditions and retailer pricing decisions,” a Microsoft spokesperson told ZDNet.com.au at the time.

    Locally, Office 365 will be delivered through Microsoft’s partnership with Telstra, which will be the exclusive reseller of Office 365 to all Australian customers other than those which have an Enterprise Agreement with Microsoft. Those enterprise customers will be able to order Office 365 directly.

    The move positions Telstra and Optus squarely against each other when it comes to office productivity suites delivered online, with the SingTel subsidiary having recently inked a partnership with Google to sell the search giant’s Google Apps product to customers.

    Two companies which have already signed up for Office 365 are local recruitment company Rookie Recruits, and broadcaster SBS Australia.

    “Our recruitment company has uniquely tapped into the stay-at-home-mum workforce, which wouldn’t have been possible without cloud technology” said Andy Springer, Co-Founder and Talent Director, Rookie Recruits, in a statement distributed by Microsoft. SBS IT manager Klaus Schelp said the organisation had required a new collaboration platform — including email — that could be delivered quickly and with “minimal disruption”.

    “We chose Office 365 as it provides us a tight integration and collaboration and was already familiar to our employees,” he said in Microsoft’s statement. “It also freed up the IT department’s valuable time allowing them instead to focus on business critical projects.”

    Microsoft appears to be signing up a number of local partners to help it support Office 365 in Australia, with local companies OSC, Ensyst and Paradyne issuing statements in support of this morning’s launch of the package. It remains unclear to what extent local large Microsoft resellers such as Data#3 and Dimension Data will be involved in supporting the software.

    Image credit: Microsoft

    submit to reddit

    16 Comments

    You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

    1. Simon Reidy
      Posted 29/06/2011 at 12:52 pm | Permalink |

      ““Our prices vary by region and are determined based on a variety of market specific factors including, but not limited to exchange rate, local taxes, duties, local market conditions and retailer pricing decisions,” a Microsoft spokesperson told ZDNet.com.au at the time.

      Translation: “We’re going to rip people off, just because we can.”

      • Posted 29/06/2011 at 1:03 pm | Permalink |

        Any statement which starts with “market rates” or “what the local market will bear” equals rip-off. And the argument that it costs more to support Australians (with our dispersed geography) or to deliver the goods means nothing when the software is delivered over the internet and you can just as easily set up a 24×7 call centre for Office 365 in India.

    2. TechinBris
      Posted 29/06/2011 at 12:57 pm | Permalink |

      Gouge! Why is it that multination companies have this perception that Aussies just love to be gouged financially? Now can we show Gerry Harvey why Aussies love to shop overseas on the Internet?

    3. Posted 29/06/2011 at 1:03 pm | Permalink |

      “Locally, Office 365 will be delivered through Microsoft’s partnership with Telstra”

      ^– Now you know where the price difference goes to :)

      • Posted 29/06/2011 at 1:06 pm | Permalink |

        Well, it is likely that Telstra will be taking a chunk of the pie. You have to wonder though … why MS feels the need to partner with Telstra in this regard — it’s not like Microsoft lacks a solid Australian distribution channel, and it’s not like Australian businesses actually need to buy extra services from Telstra to use Office 365.

      • AM
        Posted 29/06/2011 at 1:12 pm | Permalink |

        I’m sure this deal made sense in an executive board room somewhere.
        I wonder if MS realise how far some people would go to not have to deal with Telstra?

        As for the markup, I believe I’ve had my say there.

    4. AM
      Posted 29/06/2011 at 1:06 pm | Permalink |

      I have been a massive and public supporter of Office365.
      The product is great.

      This pisses me off.

      And as a potential small business user (did the beta), they just lost my business.

    5. Matthew
      Posted 29/06/2011 at 1:06 pm | Permalink |

      “Telstra, which will be the exclusive reseller of Office 365″

      That explains it all right there. Not likely to be going with office 365 now as I’m trying as best as I can to avoid using telstra as I don’t like being transferred around 5 or 6 different departments every time I need a small change made or have a fault.

    6. Posted 29/06/2011 at 1:09 pm | Permalink |

      The Australian public may have woken up to how bad price discrimination is in the last 6 months but if they keep rewarding companies who practice it then there is no reason for them to stop doing it.

    7. Myke
      Posted 29/06/2011 at 1:56 pm | Permalink |

      They’re not building a mother-ship like Apple – what’s the need to screw the consumer I wonder?

    8. R
      Posted 29/06/2011 at 2:46 pm | Permalink |

      I get the feeling they’ve been doing this for ages, it’s only so obvious now because our dollar’s worth more.
      Microsoft isn’t the only one either – Asus charges $200 (%50) more for the Transformer here.

    9. Posted 29/06/2011 at 6:23 pm | Permalink |

      This is awesome. The more Microsoft screws the customers then the easier it is for me to promote open solutions to them. My business certainly appreciates Microsoft’s tactics.

      • Posted 29/06/2011 at 6:26 pm | Permalink |

        Con Zymaris? Is that you??

        • Posted 29/06/2011 at 7:42 pm | Permalink |

          Not last time I looked in the mirror! ;-) I’m the salesbod, he runs the business.
          cheers!

    10. Posted 30/06/2011 at 12:04 am | Permalink |

      This is why I signed up with Microsoft BPOS (now Office365) directly in the USA.

      1. It was cheaper than exactly the same offering sold through Telstra (T-Suite)
      2. It had the full features which T-Suite does not offer
      3. I deal directly with Microsoft and don’t have to deal with Telstra

      I’ve been using BPOS for 2 years now and never had an issue with it. It is great value for money with enterprise grade features, functionality, management tools and support.

      How anyone can say the price difference is because of “…a variety of market specific factors including, but not limited to exchange rate, local taxes, duties, local market conditions and retailer pricing decisions…” with a straight face is beyond me!

      I’m about to close 2 major deals with international SaaS vendors right now and they quote in U.S. dollars and use the current exchange rate at the time of signing the agreement (which is great for me now due to favourable AUD exchange rate) and should be the same for all other SaaS offerings like Office365.

    11. Posted 01/07/2011 at 5:55 pm | Permalink |

      Maybe they hedged their currency exchange in AUD some time ago.

      The variability of AUD/USD means that relying on day-to-day market rates is very bad business practice. A business like Microsoft would have hedged a lot of Australian dollars at some point in the past, and they still have to use that conversion point (or, they still can use that conversion point, because it’s better for them!).




    Get our 'Best of the Week' newsletter on Fridays

    Just the most important stories, one email a week.

    Email address:


  • Most Popular Content


  • Six smart secrets for nurturing customer relationships
    [ad] Today, we are experiencing a world where behind every app, every device, and every connection, is a customer. Your customers will demand you to be where they and managing customer relationship is the key to your business’s growth. The question is where do you start? Click here to download six free whitepapers to help you connect with your customers in a whole new way.
  • Enterprise IT stories

    • NetSuite in whole of business TurboSmart deal turbosmart

      Business-focused software as a service giant NetSuite has unveiled yet another win with a mid-sized Australian company, revealing a deal with automotive performance products manufacturer Turbosmart that has seen the company deploy a comprehensive suite of NetSuite products across its business.

    • WA Health told: Hire a goddamn CIO already doctor

      A state parliamentary committee has told Western Australia’s Department of Health to end four years of acting appointments and hire a permanent CIO, in the wake of news that the lack of such an executive role in the department contributed directly to the fiasco at the state’s new Fiona Stanley Hospital, much of which has revolved around poorly delivered IT systems.

    • Former whole of Qld Govt CIO Grant resigns petergrant

      High-flying IT executive Peter Grant has left his senior position in the Queensland State Government, a year after the state demoted him from the whole of government chief information officer role he had held for the second time.

    • Hills dumped $18m ERP/CRM rollout for Salesforce.com hills

      According to a blog post published by Salesforce.com today, one of Ted Pretty’s first moves upon taking up managing director role at iconic Australian brand Hills in 2012 was to halt an expensive traditional business software project and call Salesforce.com instead.

    • Dropbox opens Sydney office koalabox

      Cloud computing storage player Dropbox has announced it is opening an office in Sydney, as competition in the local enterprise cloud storage market accelerates.

    • Heartbleed, internal outages: CBA’s horror 24 hours commbankatm

      The Commonwealth Bank’s IT division has suffered something of a nightmare 24 hours, with a catastrophic internal IT outage taking down multiple systems and resulting in physical branches being offline, and the bank separately suffering public opprobrium stemming from contradictory statements it made with respect to potential vulnerabilities stemming from the Heartbleed OpenSSL bug.

    • Android in the enterprise: Three Aussie examples from Samsung androidapple

      Forget iOS and Windows. Today we present three decently sized deployments of Android in the Australian market on Samsung’s hardware, which the Korean vendor has dug up from its archives over the past several years for us after a little prompting :)

    • Businesslink cancelled Office 365 rollout cancelled

      Microsoft has been on a bit of a tear recently in Australia with its cloud-based Office 365 platform, signing up major customers such as the Queensland Government, Qantas, V8 Supercars and rental chain Mr Rental. And it’s not hard to see why, with the platform’s hybrid cloud/traditional deployment model giving customers substantial options. However, as iTNews reported last week, it hasn’t been all plain sailing for Redmond in this arena.

    • Qld Govt inks $26.5m deal for Office 365 walker

      The Queensland State Government yesterday announced it had signed a $26.5 million deal with Microsoft which will gain the state access to Microsoft’s Office 365 software and services platform. However, with the deal not covering operating system licences and not being mandatory for departments and agencies, it remains unclear what its impact will be.

    • Hospital IT booking system ‘putting lives at risk’ doctor

      A new IT booking platform at the Austin Hospital and Olivia Newton-John Cancer and Wellness Centre in Melbourne is reportedly placing the welfare of patients with serious conditions at risk.

  • Enterprise IT, News - Apr 17, 2014 16:39 - 0 Comments

    NetSuite in whole of business TurboSmart deal

    More In Enterprise IT


    News, Telecommunications - Apr 17, 2014 11:01 - 106 Comments

    Turnbull lies on NBN to Triple J listeners

    More In Telecommunications


    Featured, Industry, News - Apr 17, 2014 9:28 - 0 Comments

    Campaign Monitor takes US$250m from US VC

    More In Industry


    Digital Rights, News - Apr 17, 2014 12:41 - 12 Comments

    Anti-piracy lobbyist enjoys cozy email chats with AGD Secretary

    More In Digital Rights