Microsoft Increases Office 365 and Microsoft 365 License Prices
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Microsoft's latest price hike for Office 365 and Microsoft 365 licenses has sparked a lively debate, with commenters pointing to the company's Xbox division's costly acquisition of Activision-Blizzard as a likely driver of the increase. Some users are already feeling the pinch, with Xbox's Ultimate game pass service now priced at $30 a month, leading to concerns about being priced out. Meanwhile, others are questioning the value proposition of Microsoft's AI-infused products, with one commenter wondering if Copilot will actually make development cheaper and faster, or just become a costly add-on. As users explore alternatives like Google Docs, the discussion highlights the growing tension between subscription fatigue and the need for robust productivity tools.
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Of course this price hike is inevitably dragging Xbox brand into the hole long term, but those in charge of the price hikes probably expect not to be around when that happens,.
What did I say?
Hell, even Call of Duty somehow underperformed
Microsoft increasing prices on a subscription product is an admission that their AI play is failing. The project sucks up money and yields none of the promised returns. Failure to deliver on development, failure to optimize datacenters, failure to reduce required staff in general.
If it were just about any other group than that company's "finance department" that so deeply wanted "just tightly wrap Excel in a web UI and leave the key computations as Excel formulas we can continue to edit in Excel because all we want to understand is Excel" project would probably have been rightfully laughed out of the room. Finance has the keys to a lot of companies and like keeping those keys for comfort in Excel.
If the finance team suggested you have to write all of your code in C using Emacs would you be OK with that?
But to answer the question, that is where I finished. We weren't "okay with it" that the finance team insisted on a C# to Excel files in SharePoint/OneDrive via Microsoft Graph turducken. We lived with it because the finance team had enough of the metaphorical keys to the car to be deeply in the driver's seat of that project. Sometimes you just have to grit your teeth and deliver what the customer wants.
Having said that, I love that Excel has democratized app-building and made it easier for people to solve their own problems. In terms of alternatives, I think it's more about the UI and mental model that people have when using Excel, not necessarily the functionality. There may be 1-to-1 competitors in terms of functionality, but in terms of UX, Excel is sort of king.
Software developers on the other hand never make mistakes
Sure, but they also use accounting software, not Excel.
> Software developers on the other hand never make mistakes Sure they do, but they use testing and typed languages etc.
The problem with Excel is comma vs dot, locales, fat fingering, out of range errors, too easy to change a cell formula by mistake etc.
Not only that, software nerds are rediscovering that they can build so much in Excel. You don't need an app for everything.
>When Visicalc was released, Perez became convinced that it was the ideal user interface for his visionary product: the Functional Database. With his friend Jose Sinai formed the Sinper Corporation in early 1983 and released his initial product, TM/1 (the "TM" in TM1 stands for "Table Manager"). Sinper was purchased by Applix in 1996, which was purchased by Cognos in late 2007, which was in itself acquired mere months later by IBM.[3][2]
TM1 is widely used as a way to interface with official ledgers.
I know plenty of people who think they do. I know a few that cost the world economy about a trillion dollars: https://inthesetimes.com/article/the-excel-spreadsheet-error...
You may notice the last edition of softwares that had perpetual licenses but moved on to subscription model tend to be very expensive today as they are no longer sold and people know how to count. So, let's use the opportunity while it lasts as I don't believe the end of perpetual licensing for Office (or Windows for that matter) is far away.
Hacker News is a different world than the target customer base for these products. If your use case for spreadsheet software is putting things into tables with some formatting and some light formulas then all of the products will do the same job.
For professionals who use these tools, suggesting they use LibreOffice or something is the equivalent of someone coming to you and suggesting you give up your customized Emacs or Visual Studio Code setup in favor of Notepad++ because they both edit text and highlight code.
I agree 100% with this, since I've been trying the same. Although I do think some power-users take it way too far and should be using more robust data analysis tools (Python, DBs) instead of having these monstrous Excel spreadsheets with millions of rows and columns.
I agree and you'd be surprised at the response when I showed some of them how to do it in python numpy.
But they they wouldn't be power-users anymore, they'd be developers. It's just an entirely different world.
I strongly agree, but even for the basics! I use LibreOffice for personal use and put up with it only because it’s not Microsoft. It’s laggy, copy paste sometimes doesn’t work, the user interface is quite dated, the fonts are ugly…the list goes on. I donate to Document Foundation so that it can get better, but it moves very slowly.
Turns out close to 100% of the spreadsheet users out there don't care about that. It's unnerving and absurd, and IMO, what is even the point of all the effort of entering your data and working it if you don't care about the result being correct? But that's how the world is.
LibreOffice Calc just gives you an import window with some pretty good defaults, like UTF-8. It could be better, but at least it is not worse.
Excel added useful array functions. Good luck finding anyone who can handle that.
Tables in Excel are not really first class citizens. They move differently than everything around them but they don't have an obvious interface for working with them from other parts of the spreadsheet. Within a table you can refer to rows by name, but not outside, really. If you click on a pivot table for a reference, it gives you a GETPIVOTDATA function, when you might have actually wanted E3 or whatever.
And don't get me started on "dates", "numbers", "text", etc., excels weakly strict datatypes.
This might be true. But most Excel users just use the basics and would be well served to switching to a Free Software alternative such as LibreOffice Calc. Which, is also capable to be used in advanced contexts; although for those cases it is different than Excel, admittedly.
I think most of the excuses saying why people don't switch to Excel alternatives are simply coverups for inertia. I understand that; getting out of the comfort zone is difficult. But it's not impossible.
I deal with hundreds of API integrations involving various JSON, CSV, TSV, and XML files with mixed validity. My workflow: Notepad++ for a visual check -> Prototype everything in Excel. I give users a "visual", connect it to real data, and only then migrate the final logic to BI dashboards or databases.
Nothing else delivers results this fast. SQL, BI tools, and Python are too slow because they generally need "clean" data. Cleaning and validation take too much time there. In Excel, it's mostly just a few clicks.
PS: I spent 2 years (2022-2023) using LibreOffice Calc. I didn't touch Excel once, thinking I needed to break the habit. In the end, I did break the habit, but it was replaced by a pile of scripts and utilities because Calc couldn't do what I needed (or do it fast enough). The experience reminds me of testing Krita for 2 years (2018-2020) — I eventually returned to Adobe Photoshop (but that's another story).
- it's hard to version control/diff
- it's done by a human fat fingering spreadsheet cells
- it's not reproducible. Like if you need to redo the cleaning of all the dates, in a Python script you could just fix the data parsing part and rerun the script to parse source again. And you can easily control changes with git
In practice I think the speed tradeoff could be worth the ocasional mistake. But it would depend on the field I guess.
> - it's done by a human fat fingering spreadsheet cells No one is entering anything into the cells, please reread the message.
> - it's not reproducible. Like if you need to redo the cleaning of all the dates, in a Python script you could just fix the data parsing part and rerun the script to parse source again. And you can easily control changes with git And that's what I said above. That it takes longer. Why use git/python when I can do it in a few clicks and quickly see a visual representation at every step?
> In practice I think the speed tradeoff could be worth the ocasional mistake. But it would depend on the field I guess. Another sentence that shows once again that you haven't read what was written.
PowerPoint is underrated.
For enterprises it almost always comes down to - does it reduce risk, is it easy to manage, authentication & authorization features, is it good enough & is it compatible with our current stuff.
Otherwise, I keep it around for the desktop Excel app. Still my preferred spreadsheet app, even though Google Sheets does pretty much all of what I need.
Someone really should Pixelmator Excel. That’s a viable startup, I think, though I have no idea what the GTM looks like. Some killer feature/perf that makes people install it alongside?
No, I don't think so. I either sail the high seas or subscribe for a month or two when job searching then toss it when I'm done.
For an org where individual users aren't technical I'd never try to get by w/o Microsoft Office. The assumption by all large orgs. that you're going to use Microsoft Office is pervasive. Even if the Free Office suites work fine tech support is always going to be mired down in compatibility issues, both real and perceived.
My company pays for office though, and I end up having to use it to play their Sensitivy Rules games for labeling files.
But nothing beats excel or power point.
Agreed that their actual products seem to work fine for almost everyone.
But the UX is just a lot worse, and it isn't easy to go from one application to another because they're slightly different enough that your productivity takes a hit from all the small papercuts.
I'm waiting for some FOSS spreadsheet solution that doesn't just try to copy Office, but comes up with something better. Then it'll feel like it's worth it to learn a whole new program and its UX, rather than just suffering through it because you wanna use FOSS.
There's two more things excel is horrible at: choice of extension language and being able to graduate your spreadsheet into a real program. You fix the extension language by using something like web assembly on the back end, and probably bundle one or more compilers to go from $lang to web assembly in order to be user friendly. Lastly you fix the last problem by virtue of doing all of the above. The second two features won't draw in new users much, so they're less important in the short run but make it a lot more sticky.
I'm not in a place in life to put much free time into that project, and ideas are cheap ...
It's self-hostable (and the community version is FOSS I think), and really useful in a way I find better than just a spreadsheet.
It's no good for importing complex excel things, but I've found it very useful for new work.
[0](https://www.getgrist.com)
When there is a significant difference, it needs to be shown what the equivalent is in the alternative. The jump can be a bit mitigated by education or information, but usually by only so much, where it's still seen as attractive.
But once you get used to those differences, (also, knowing that there are a handful of themes that can shorten the difference significantly) then it becomes a non-issue after less than 10 hours of use.
Speak for yourself. I see that LibreOffice's default UI is still a normal WIMP UI and this is a plus for me. I hated when MS Office switched to the ribbon in Office 2007.
"So you want to insert a row in a table? Great, just click on Table > Insert > Row... Oh well. Nevermind, just show me your screen and I'll hunt the functionality in that stupid ribbon."
We don't need less, but more, Office programs that respect GUI UI conventions.
Looks like there was finally a OpenOffice release recently but that was after years of people complaining of security vulnerabilities not fixed in the release version.
For new work that I might have otherwise done in Excel, there are good options. Collabora works. Libre Office works. Google sheets works. And Grist is quite good, and self-hostable.
It has nothing to do with existing files/compatibility. Excel is unparalleled.
It's fine if you have a few formulas. As soon as you're busting out macros it's time to sunset the workbook and make an application. There's a lot of God Excel workbooks sitting around on share drives with no audibility or quality control.
But given that Excel is the second-best tool for everything, world runs on it.
And when you try to build systems to replace Excel for a specific task, you quickly learn how extremely powerful Excel is and how hard is to replace it and add value that customers would care about.
But many end users prefer dealing with bugs than with inflexible software that doesn’t understand all the different ways how real world is messy and hard to model.
I hate using Excel. But I 100% understand why world runs on it.
More people should use and contribute to LibreOffice!
If you listed out all the things that Excel can do, we might find that the alternative is at 80% or so (just a number), with some additional things that Excel can't do. That 80% could be good enough to switch. It should not be looked at as "all or nothing", especially for every person or business.
This is not theoretical; I learned it by needing to get shit done in a context where having an activated copy of Excel wasn't practical. Excel was paralleled and in one case surpassed.
Isn’t that only perpetual as long as the activation servers are up?
In case you aren't aware, when they try to sneak Copilot onto your plan you can get rid of it by going to your plan management page and canceling. One of the offers they should offer to try to get you to stay is your old plan without Copilot.
2B row limit, connected, eliminates the Excel security risk because it's hosted.
That was the moment I booted into windows for the first time in 4 months. I started up Power Point and sure enough SVGs are no problem.
What missing integration makes you say "it's crap" and what do you consider a good version of that thing?
How people in companies really need the features of Word, Excel and PowerPoint?
I often see people using space to right align a date, the pros use tabs.
Likely they'd charge more for it.
Price increases are normal. These price increases aren’t excessive relative to inflation for other services in a business context. I don’t see this as a dangerous game.
> The new "features" they're justifying this with (Copilot) isn't even something that most people want
Most people who comment on HN, maybe. Their average customer is probably demanding it and at risk of switching products if the AI integration is not as good as a competitor’s.
The Venn diagram of their customer base and Hacker News commenters doesn’t have much overlap.
There's no substance to this comment. It's pure speculation. If you actually want to look at evidence, look at the recent news that Microsoft has cut AI sales targets in half.
> The Venn diagram of their customer base and Hacker News commenters doesn’t have much overlap.
Ironic that you posted this as a comment on HN.
It’s not ironic at all: This comment section has a lot of people evaluating these price hikes as if they were targeted at HN individual users, not for a product targeted at a different audiences and corporate subscriptions.
Hacker News commenters are frequently unaware that their use cases and customer preferences do not reflect the average customer demand in the market.
Remember when Dropbox was launched and the top comment was doubting its utility because they could replicate it with rsync and other commands duct taped together? That level of disconnectedness with the market is common in every thread about consumer products.
As for AI demand: If you don’t think AI is in demand, you haven’t been looking at the explosive adoption of AI tools from ChatGPT to Sora (consistently high on app charts) by consumers. These products are in high demand, though you’d never know if it your only perspective was through upvoted HN stories and comments.
Yeah, the demand is there, but I have a hard time believing nontechnical people are clamoring for Copilot, they likely don't even know such a thing exists. The market is insane right now.
So they had used ChatGPT enough to recognize that you were using a different tool?
I don’t see this as contradicting anything. Even the nontechnical people in your life are familiar with these tools because they’re using them.
There are alternatives for consumers but enterprise isn't going to screw around with those.
"But the fact that some geniuses were laughed at does not imply that all who are laughed at are geniuses. They laughed at Columbus, they laughed at Fulton, they laughed at the Wright brothers. But they also laughed at Bozo the Clown." - Carl Sagan.
I don't disagree with most of what you said, we can be out of touch a lot of the time, but I kind of hate that this has become the "smoking gun" to dismiss comments on Hacker News. Yes, one person was wrong about Dropbox and said that they could just use an FTP server. Yes, people on here agreed with that person. Yes, sometimes our ability to do things low level blinds us to the fact that the majority of people can't or simply don't want to.
That said, most of the negative feedback people get for these things is actually good feedback, and most of the time when people say a project can be accomplished by doing XYZ, that's usually a valid point. Technical people can absolutely be out of touch (and I'm probably worse than average about it), but that doesn't automatically mean that a comment on HN is invalid or useless.
While saying "no one wants" the AI features might be a bit of hyperbole, I don't think it's super out of touch, and this is evidenced by the fact that a lot of the VC money for AI ventures is drying up. AI is neat and here to stay, but I think a large chunk of society is coming to terms with the fact that it's not nearly as cool as it was promised to us, and getting a little annoyed with how much AI crap is being thrown at us. YouTube is getting filled with low-effort AI video and AI voice and AI script bullshit, the average web page is turning a tinge of yellow from all the AI generated images that seem to be all over the place, searching is getting almost as bad as it was in 2005 when "SEO" became a thing because of all the AI generated blogs designed to steal clicks. None of this stuff is relegated to the technical crowd, this is stuff even normies have to deal with.
And within the scope of HN, I'm sure all of us are getting a little tired of having to review pull requests with huge chunks of clearly-AI-generated code that the writer doesn't really and are large enough to not be realistically reviewable with a lot of shitty, low-effort code.
So a 16% hike when current US inflation is 3-4%?
No business is really going to care about $1.00/user, especially when it costs hundreds of dollars per user (or thousands) to migrate entirely away from the Microsoft ecosystem.
Or that this was for business accounts that were already cheap? $1/seat isn’t going to cause a mass migration off the platform.
Or that some of the price hikes were 0%?
Fixating on this lowest price increase is deliberately misleading.
You would also have to go back and calculate price increases over time to compare against inflation over time?
When was the last price hike? Looking at historical inflation and working backwards, you only need to start at around late 2021 to get 16% cumulative inflation. In other words if they didn't raise their prices for 4 years, they'd be at par with inflation.
edit: another commenter mentioned the last price hike was around 4 years ago, so it's indeed in line with inflation: https://news.ycombinator.com/item?id=46192356
All the purchase renewal decisions I've been part of have been:
1) Will they budge on renewal rates?
2) Does an alternative vendor exist?
3) Is the increase reasonable compared to the cost of switching to an alternative?
4) Do we anticipate future price increases, and if so, how can we prepare ourselves to consider a switch in the future?
Don't ask me, ask the person who posed the question of inflation in the first place. That said...
>All the purchase renewal decisions I've been part of have been:
All but one of the reasons you listed are tied to inflation in some way. Inflation affects everything in the economy, so a company that doesn't raise prices in line with it is losing money. Even SaaS businesses with low marginal costs aren't exempt, because they still need to pay salaries for developers and support staff, both of which roughly track inflation. Therefore if business see price hikes that raise with inflation, they can assume that competitors will raise prices as well, and it's not going to be worth switching unless they're already on the fence for some other reason.
Only if you assert that all prices move together at the same velocity.
It's usually a reasonable thing to assert, when the economy isn't in a complete revolution. And it's a really bad premise right now.
You're completely right about this. But how does the Venn diagram look for features between different Office versions and for customer needs? Another commenter here said that Office 98 is good enough for most users, and I have to agree.
What reason is there today for somebody to upgrade from a 10 or 15 year old version of Office? Is Copilot it?
I've managed a very information-intensive career so far without using MS Office. Apple's iWork software is perfectly fine. And I'm not avoiding Office out of any principle. If I needed or wanted it, I'd be happy to pay for it.
Collaborative editing
Which customers? Some enterprise customers want AI, others restrict its use. Other want integration with something other than Copilot.
The average australian customer managed to get angry enough that the ACCC is working to force a slop free variant and a refund for everyone dark patterned into upgrading.
If you replace office, you'll have to replace sharepoint, onedrive, etc.. and it isn't just the tools but the policies and critical features that go along with those. For most orgs, this is literally their lifeblood, not just some tool they can yank out. For smaller orgs it might be easier, but those don't pay Microsoft as much anyways.
From a user point of view, there are tools that have similar features, some even better features. G-suite is the only platform i know of that unifies all the office productivity products like 365 does. But neither G-suite nor any other platform can be managed/policed as well as 365. At the end of the day, will Google behave any better than Microsoft anyways (cost or otherwise)? And it isn't just policing and management but securing all that precious data in there, Microsoft might not be great but lots of tech-debt has gone into securing it within that platform. A migration would be costly, justifying it with cost savings alone might be difficult.
At least in my workplace, people do their best to avoid using sharepoint and onedrive anyway.
I can see being resistant to change, haven't had issues with it (and have benefitted from the auto save quite a lot).
There are downsides to OneDrive. Topping the list is the risk of data loss. Every dev here has at least one story of OneDrive getting confused in a way that led to data loss (that's usually what got them to start avoiding using it). It can also be inconvenient and get in the way in more minor ways, such as causing path confusion with some applications.
The benefits, at least where I work, are pretty minimal. So, on the whole, people tend to keep their documents in unsynced folders. The only people I've talked to here that have anything positive to say about it are managers.
I've had some irritations with it, but overall having versioning has been a much bigger benefit than the hassle.
Except there are not really any competitors if you look at the whole package.
A Microsoft 365 Business Standard subscription, for example, gets you bundled Teams and Exchange.
The fact you get the big-four (Word, Excel, Outlook and Powerpoint) thrown in is really just icing on the cake.
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