Microsoft Cuts Prices for Cloud-Based Productivity
Microsoft's move to cut pricing on a number of its online services wasn't unexpected, but could put pressure on its channel partners, according to an analyst. The price reductions are an extension of a promotion that already was garnering success.
"It's not much of a surprise," said Rob Sanfilippo, research vice president for Directions on Microsoft. "The interesting thing about it is that it is cutting margins even more."
Microsoft announces updates to its online services every 90 days. The price cuts, on a per-seat, per-month basis, ran across several products and the comprehensive Business Productivity Online Suite (BPOS) offering as a whole. Exchange Online was reduced from $10 to $5, SharePoint Online from $7.25 to $5.25, and Office Communications Online from $2.50 to $2. BPOS now is $10 per seat per month. Microsoft also announced that it has increased mailbox storage to 25GB.
