Office 365 ProPlus Pricing Nasty For Large Australian Businesses

Want Office 365 ProPlus and have more than 250 employees in Australia? Congratulations, it's potentially going to cost you nearly twice as much and you'll get less for your money.

Yesterday, we outlined the three versions of Microsoft's Office 365 subscription package that will be offered to business users. In Australia, Microsoft is continuing its partnership with Telstra to sell the subscription service to small and medium businesses.

For the Midsize Business and Small Business Premium skews, Australian pricing is fairly close to the US, though not identical. Small Business Premium is $13.50 per user month (compared to $US12.50), and Midsize Business stacks up at $16.50 per user per month (compared to $US15.00).

Here's where it becomes confusing. Midsize Business includes the Office 365 ProPlus software package, which covers all the main Office apps. In the US, ProPlus on its own is the cheapest subscription version of Office 365, at $US12 per user per month. However, in Australia, buying ProPlus standalone through Telstra will cost you $26.90 per user per month.

So why would anyone go for the more expensive option, when Midsize Business gives you ProPlus and extra features but charges you $10 a month less ? The main answer: Midsize Business is aimed at customers with less than 250 staff members. If you have more employees than that, you have to cough up more money. (The other evident difference is that some of the IT management options aren't included in the Midsize Business pack, but that didn't lead to such disparate pricing in the US.)

The corporate reality may not be quite as stark as the pricing numbers suggest. Customers with enterprise agreements may be able to negotiate more favourable deals. Nonetheless, it's a strangely confusing pricing policy, and one I suspect will see most enterprise users sticking with outright licensing rather than the subscription approach.


Comments

    The pricing on the Microsoft Australia page seems a little different to your prices, and states that the Midsize Business plan from Telstra comes with local installs of Office for $16.50/u/m?

    It still stumps me that some business's think the MS route is the only option available to them.
    Plenty of alternative suite available that are just as good and in some cases better than the MS office solutions...and more importantly cheaper. Google Docs, Open Office & Libre Office spring to mind.

      Microsoft Office is the only economic and productive option for the vast majority of businesses.
      There are costs beyond that of the software, such as but not limited to training, support, interoperability with client systems and processes.

      There are other benefits for many volume licensed customers as a part of Software Assurance which include things like project hours, planning days, HUP, training vouchers and a lot more.

      Why, in the name of all that is holy, would a business want to use Open Office or Libre Office?

      In a business environment prompt support has its place.

      Microsoft Excel is a incredibly powerful tool for large business data mining, companies which use it would be so integrated into the ecosystem that there is little other choice. Also I can't imagine that Open Office and the like have such a tight integration with a domain environment in terms of collaboration like Office + Sharepoint

    Office 365 for Midsize Business doesn't include Office 365 Pro Plus, it includes Office Pro Plus which is very different to Office 365 Pro Plus.

    Clearly you are confused as to what Office 365 Pro Plus actually is, how to get it and what it costs. If you have over 250 seats on an EA its 15.30-16.87 per month per user.

    The reason sub 250 is more in Australia is because it is sold through Telstra who add a margin, in the US it is sold direct. Whether that is fair or not is not for me to judge.

    Last edited 01/03/13 11:35 am

      "Office 365 for Midsize Business doesn't include Office 365 Pro Plus, it includes Office Pro Plus"

      Would you have a source link for that one? I'm not disputing your claim, but if "Office 365 for Midsize" doesn't include Office 365, surely that's just begging for ACCC invovlement at some point.

        Office 365, Office Pro Plus included with Office 365 and Office 365 Pro Plus are all different products.

        Office 365 for MB includes Office Pro Plus, as per the listing on Telstra.
        Office 365 Pro Plus is different to Office 365 and different to the Office Pro Plus included with Office 365 for MB.

        Confused yet?

    Microsoft can go bugger themself
    LibreOffice 4eva!

    Hi guys, just want to share this site I've been using for my Microsoft Office software needs.

    http://www.softwarespeedy.com/office/

    They do international shipping and they have download versions of software too.

    I already made my first purchase with them and was quite satisfied. Customer/Tech Support is nice and accomodating.

    Have fun!

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