Redmond (WA) – ‘Careful’ is probably the most appropriate term to use when describing Microsoft’s introduction of a software subscription model to consumers. Transitioning users from a purchase-to-own to a rental model of its software has been discussed for many years and now such a product is officially available. To sweeten the deal, Microsoft throws in a subscription to its Windows Live One Care service.

It is one of these products and service you may not look forward to, but knew it was coming: A subscription model to Microsoft Office. Microsoft envisions that more and more users will not own a copy of Microsoft Office in the future anymore, but rent it and provide the company with recurring revenue stream every year, instead the onetime fee you pay for the software today.   

The consumer subscription offering is called “Equipt” and includes Microsoft Office Home and Student 2007 - with the latest versions of Word, Excel, PowerPoint, OneNote for their personal and school projects, as well as Windows Live OneCare. Software updates are included in the deal, so you always get the latest version of Office and OneCare. The price? $69.99 per year.

Microsoft’s move appears to make sense in a time where our everyday life is increasingly based on subscription models. You are used to subscribing to your phone and cellphone service, your Internet service, cable service, Tivo and soon you may be subscribing to a music download and cloud services – so why not subscribe to your basic software as well?        

To us, this one seems a tough one to swallow. In the end, PC users are used to owning their software and paying for software only once – usually at the time you purchase a new PC. It isn’t particularly difficult to see Microsoft’s motivation to get you hooked on a software subscription model: On average, you may be paying much more for your software than you do today and you get used to a subscription model and may be much more likely to subscribe to other services as well.

To make the transition more convincing, the price tag for Equipt in fact is low, if you consider that Windows Live OneCare is included- in fact it almost appears as if Microsoft is sacrificing OneCare to make the case for its new subscription model. Windows Live OneCare alone is priced at $49.95 per year – and you are used to paying for your anti-virus software on an annual basis already. From that view, the Office package will cost you only $20 per year. If you are a pessimist, you may say that Microsoft just bundles the package to get $20 more from you every year.

Is the pitch via OneCare enough to convince you to subscribe to Equipt? Let us know what you think by writing a comment below.

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