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April 02, 2003 12:00 AM

Microsoft Announces Office 2003 Editions, Bundling & Licensing Plans

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UPDATED: This week, Microsoft revealed that the company will expand its Microsoft Office 2003 lineup to include new basic and professional enterprise editions and a developer-oriented release called Visual Studio Tools for Office. But not all Office products will be available at retail locations, and the most compelling version for consumers, Office 2003 Basic Edition, will ship only with new PCs. According to my sources, Microsoft will launch Office 2003 in early June at Microsoft TechEd 2003, and the product will ship later that month.

"By offering different versions of Microsoft Office 2003 for different types of customers with different needs, we will be able to offer customers the latest productivity tools that fit their needs and the way they want to purchase their software," a Microsoft spokesperson said.

Here's how the various editions pan out. The new Office 2003 Basic Edition will be bundled only with new PCs and will include Microsoft Word, Excel, and Outlook. Office 2003 Standard Edition, which will be available in retail stores, will include the same applications, plus Microsoft PowerPoint. Office 2003 Professional Edition will be another retail release and will include everything from the Standard edition, plus Microsoft Access, Publisher, and Business Contact Manager for Outlook. The new Office 2003 Professional Enterprise Edition will be available only through volume licensing--the primary way that large enterprises purchase the suite--and will include all the applications from the professional edition, plus Microsoft InfoPath. Office 2003 Small Business Edition will include all the applications from the standard edition, plus Publisher and Business Contact Manager for Outlook. The company will also continue selling--at retail only--a low-cost Office Students and Teachers Edition, which includes the same applications as the standard edition. And Microsoft will replace the current Office Developer Edition with a product called Visual Studio Tools for Office, although how this product will be licensed and distributed is unclear.

Confused? Hold on, it gets worse. In addition to the myriad choices in suite editions, those editions include different versions of the various Office applications. Office 2003 Professional Edition and Office 2003 Professional Enterprise Edition will include new professional versions of Word, Excel, Outlook, and PowerPoint that differ slightly from the versions in the other suites. The professional versions of these applications include Information Rights Management (IRM) document-protection technology, advanced XML features, and other corporation-oriented capabilities. So only the professional versions can create IRM-protected documents, although any Office 2003 application can work with protected documents.

But wait, there's more. Microsoft is easing up licensing requirements for various versions of the suite. You'll be able to install and use the low-cost Office 2003 Students and Teachers Edition concurrently on as many as three computers, up from one in the previous version; other Office editions still support two installations, one on a desktop, and one on a notebook, though the do not permit concurrent use. And the Students and Teachers Edition will come with less restrictive licensing that will let parents of students or children under age 18 legally buy the product. This change makes the students and teachers edition available to more than half of US households, the company says, and Microsoft expects this version to be its retail sales leader going forward.

One product that's conspicuously missing from these bundles is Microsoft OneNote, an Office System product that the company first revealed last fall. OneNote won't be available as part of any of the suites but will instead be sold separately as a standalone application. Microsoft FrontPage, and Project and Visio, two Office products that will ship later in the year than the rest of the Office System applications mentioned here, will be sold only as standalone products.

Microsoft has yet to reveal pricing plans for the product suites, but the company has pledged to be aggressive in this area. The current student and teachers edition's retail price of about $130 is probably an accurate starting point. Most consumers, however, acquire Office bundled with new PCs, so Microsoft could possibly offer the basic edition to PC makers at a low cost to make it more attractive to those companies that have begun using low-cost alternatives such as Corel's WordPerfect Office or Microsoft Works.

UPDATE: In my original report, there were a few inaccuracies, which have been corrected in the text above. Originally, I reported that all Office editions would allow up installation on up to three PCs; this is untrue. Only Students and Teachers Edition will support this feature; all other Office editions can be installed on up to two PCs only. Also, I mistakenly left out information about FrontPage. Microsoft FrontPage 2003 will only be sold as a standalone product, and will not be available in any of the Office suites. Sorry about any confusion these two issues might have caused. --Paul

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Comments
  • Bob
    9 years ago
    Apr 03, 2003

    I also think MS needs a new marketing department. This is what is killing the reputation of MS.

  • Bob
    9 years ago
    Apr 03, 2003

    I was hoping that One Note would be included in all the packages of Office. I really don't think it will sell very well as a standalone product. This may be a bad marketing decision from MS. I do like the new Office though. As for the Student/Teachers edition. For someone who doesn't have any kids, I definately feel left out. They will get the product substantially cheaper. If the price is not right, StarOffice may still be my only choice. I'm not expecting Office 2003 Professional to be $89.95, but I still feel strongly that $579.00 is way to much.

  • Torolf Haug
    9 years ago
    Apr 03, 2003

    OK, I am totally confused. Well, not really, but Microsoft, could you make it a little easier next time? Geez, I thought the 2000 and XP configurations were confusing.

    How about going to an a la carte purchasing and licensing scheme next time? You could offer special discouts depending on the more pieces you buy in the Office puzzle.

  • David Brazier
    9 years ago
    Apr 03, 2003

    So InfoPath will only be available as part of Professional Enterprise Edition? It's an enterprise product, fair enough, but I had anticipated that many InfoPath-based applications would be used by large parts of a workforce that don't need Excel, Access, Publisher etc. For example, a SharePoint portal might have InfoPath documents for various tasks - users only need IE & InfoPath. So I would expect InfoPath to be available separately, or perhaps bundled with SharePoint? But then presumably many InfoPath apps won't be based on SharePoint. Anyway, this only adds to my confusion about InfoPath's positioning - I can't see there's a very strong argument as to why users should need an InfoPath client at all and why InfoPath forms can't be presented via a browser. (Obviously the authoring features need a full client, though.) Unless it's a tactic to shift more Office licences - but I can't see that working in this case.

  • Mike Cox
    9 years ago
    Apr 02, 2003

    This is some sort of joke, right? I cannot seriously believe there is any demand whatsoever for any version of Office. This new Office 2003 is ridiculous. The thought that IT departments will throw resources at customizing Office applications is ridiculous. Microsoft has lost its mind, this product has convinced me of it. At least Thurrott seems to think it is silly also. Different from his usual glad-handing.


    Editor's note: As a professional writer, it's crucial that I have the latest version of Word, and though this is arguably a minor update for that application, I find it hard to go back to previous versions. Outlook, however, is much more impressive, and there's another app I use all day long: Calling this "ridiculous" really just betrays a bit of ignorance as Outlook, especially, is a huge upgrade, and the new applications, InfoPath and OneNote, are also exciting in their own right. As for "gladhanding," I guess you see what you want to see. I generally try to tell it like it is. In the case of Office, most people will acquire it with a new PC as usual, but the low-cost Students and Teachers Edition will be very compelling for the hundreds of millions of people still running Office 97 or Office 2000. What's $129 times one hundred million, BTW? --Paul

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