In an effort to compete with Google Apps for Business, Microsoft, I understand, has decided to cut prices of some of its own cloud computing plans.
Personally, I don’t think this will have much impact as Google has stolen so much of a march on the software giant I can’t see many businesses or organisations going for Microsoft now.
Speaking with pcworld.com a spokesperson from Microsoft, Kirk Koenigsbauer said: “As we rapidly add customers, the cost to run Office 365 becomes more efficient. This is the beauty of the cloud where we can deliver economies of scale through our worldwide data centres and economies of skill with our engineers, administrators, and support teams operating the service.”
Despite this apparent self satisfied statement the reality is that Google is not just cheaper than Microsoft’s Office 365, it is also more efficient. Not just that, Google’s cloud system has been established for many years now, so it is like playing catch up where Microsoft is concerned.
For those diminishing business people and organisations that still like or use Microsoft’s products, the company has a number of price plans aimed at the small to medium-sized businesses. Formerly listed as E1 to E4, the latter have been replaced by one called P1, which has a user limit of 50.
The new, cheaper plan is also only available for new customers, not something I reckon will go down too well with existing customers once they realise they won’t benefit.
It could be that the new plan will only see more businesses switching to Google.