Microsoft is using its market dominance in the field of productivity software to force some Office suite users to make a major decision: either pay more or promise to extend the subscription period. However, Microsoft’s approach has met with resistance from customers.
In 2022, Microsoft will launch the so-called Office new business experience, changing the way customers buy software through business partners. Although the company has not publicly announced specific price changes, it has notified its partners that institutions that pay monthly will face a 20% price increase unless they switch to an annual subscription.
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For Microsoft, locking customers in longer subscription arrangements means that it is expected to increase revenue visibility and reduce concerns about user churn, which is a key factor in the subscription business. However, some partners have launched counterattacks on multiple forums. People spoke on Reddit, and more than 1,400 people signed a petition on Change.org asking Microsoft to cancel the price increase plan.
People familiar with the matter said that this resistance prompted Microsoft and its partners to conduct intensive meetings. “Microsoft provides flexible purchase options to meet the diverse needs of our customers, and we will not publicly disclose information about the charging and pricing methods for our partners.” A Microsoft spokesperson said.
