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Microsoft Office 365: Deciphering Pricing, Service Options

By Don Reisinger on 2010-10-27


Microsoft Office 365, the follow-up to the company’s Business Productivity Online Suite, is now available for beta testing. A full commercial launch is expected in 2011. With this release, Microsoft is betting big on the enterprise’s desire for suite of products that combines the power and productivity options of the desktop with the convenience of the cloud. However, the flexibility that is the hallmark of the new solution also makes it confusing when it comes time to figure out which option you need. Microsoft is offering a slew of different Office 365 versions for small businesses, larger options, and educational institutions. In addition, the enterprise version features a range of pricing and service options designed for different groups of workers. Trying to figure out which of the many options make the most sense for your enterprise can be tricky. We’ve pored over the various details and plans, and assembled them into a readily understandable package to give you an overview of what you need to know about Office 365. Read on to learn key details surrounding Microsoft’s latest productivity suite.

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The Options

Office 365 options include:Microsoft Office Professional Plus—Enhanced version of Microsoft Office for enterprise customers (includes Office Web Apps, co-authoring functions and video editing).Office Web Apps—Online access and light editing functions for Word, Excel, PowerPoint and OneNote docs.Exchange Online—Cloud-based e-mail built on Exchange Server 2010 technology.SharePoint Online—Access to document-sharing services. Lync Online—Communications capabilities across presence, instant messaging, audio/video calling and online meeting experiences including PC-audio, video and web conferencing.

The SLA

Microsoft has said that it will guarantee 99.9 percent uptime across all of its Office 365 plans. In addition, it will offer IT-level phone support and “robust security and privacy controls and standards.”

For Small Businesses

Office 365 for small businesses is available to companies with up to 50 employees. Price: Starting at $6 per user per monthFeatures: Office Web Apps, Exchange Online, Sharepoint Online, and Lync Online.

For Enterprises

Office 365 for enterprises is aimed at medium and large organizations. According to Microsoft, CIOs can tailor the options based on employee user groups, providing selective access to applications depending on user needs.

For Enterprises

Features: 25GB e-mail boxes for Exchange; SharePoint Online; Lync Online; Office Professional Plus; Office Web Apps; site searching.

Enterprise Pricing

Existing customers of Microsoft's Business Productivity Online Suite will pay $10 per user per month for Office 365 for enterprises. (Note: this package does not include Office Professional Plus.)

Enterprise Pricing

If a company plans to run Office Professional Plus along with other Office 365 services, the software giant will charge $24 per user per month for access to its service.

Enterprise Pricing

Microsoft’s plan options for kiosk workers— which offer access to e-mail, Office Web Apps (in some plans), and the ability to view SharePoint— start at $2 per user per month.

Academic Options

Microsoft will offer Office 365 for education. Pricing: Microsoft has yet to divulge pricing and availability.Features: Microsoft Live@Edu (e-mail, documents, calendar, contacts); optional access to Windows Live SkyDrive (free online storage); access to Office Web Apps.

Try The Beta

A beta version of Office 365 is available now. It will be commercially available to enterprise customers in 2011.

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