blog A great analysis piece was published on local cloud computing media outlet BoxFreeIT last month on why Australians pay more for Microsoft’s Office 365 software as a service suite. It goes through various issues such as the exchange rate (and Microsoft’s internal exchange rate), taxes, support, Telstra’s support and sales costs, billing, the partner channels and so on.
“Like many Microsoft partners I agree that the price of Office 365 is substantially high when compared to that of the rest of the world. I have to explain this to about 10% of prospective customers that I speak to. The difference between myself and many of the other partners “selling” Office 365 is that I can explain why the price is higher using logic and reason … and facts. How did I get these facts? I asked. They made logical sense to me.”
You can find more information on Microsoft’s Office 365 pricing markups last year here. The company, along with its partner Telstra, has, however, recently cut its Office 365 prices in Australia, in line with similar international cuts. I don’t buy Strant’s argument on this front entirely, but his thoughts do make for interesting reading in the context of the Federal Government’s plans to hold an IT price hike inquiry shortly.
Image credit: Microsoft