Distribution Changes, Starter Edition for Office 2010

New distribution models for Office 2010 will make it easier for consumers and small businesses to try, buy, and install the suite. To boost Office attach rates on new PCs, Microsoft will encourage OEMs to preinstall a new edition, Office Starter 2010, with limited-function editions of Word and Excel, along with the code for three higher editions; customers will then be able to “unlock” these higher editions by entering activation keys sold at retailers and elsewhere. For PCs that don’t have Office 2010 preinstalled, a new electronic installation technology based on Microsoft’s App-V will ease online distribution.

Office Starter Edition Replaces Works

Microsoft acknowledges that the economic downturn has hurt Office sales, particularly to consumers and small businesses. In a presentation to financial analysts, Business Division President Stephen Elop said that revenue from Office sales to consumers in the year ended June 30, 2009, was down 30%, and revenue from one-time sales to business customers (mostly smaller businesses) was down 35%. In contrast, Office revenue from multiyear license agreements sold to larger customers, which makes up more than half of Office revenue, dropped only 5% during the year.