At Zoho, we have been banging the drum on the coming new era of competition, thanks to the cloud, in software and how that is going to pose a serious threat to the stratospheric 90% operating profits that Microsoft enjoys on its Office suite. And sure enough, the news that Microsoft Drops Prices of Cloud Apps caught our attention. Some excerpts (emphasis mine):
Microsoft has lowered the subscription prices for its cloud computing applications, and has announced new customer wins and broader geographic availability for the apps.
The software giant has lowered the price of its Business Productivity Online Suite (BPOS), which includes online versions of Exchange, SharePoint, Office Communications and Office Live Meeting, from $15 a month per seat to $10 a month.
For Exchange Online alone, its email software-as-a-service, the price drops from $10 to $5. Microsoft also has increased its standard e-mail storage per user from 5 Gbytes to 25 Gbytes ...
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Still, are Microsoft's cost cuts enough? Google Apps, by comparison, which includes apps for documents, spreadsheets ...Read the full article