Microsoft Office 365 price is slashed

Microsoft has taken a bold move when it comes to the pricing of its Office 365 service.

The firm has elected to cut the price of "most" of the enterprise plans pertaining to its cloud office suite by up to 20 per cent. The changes are effective immediately, for new and renewing customers.

Microsoft noted the change on the Office 365 blog, where it underlined the fact that this isn't a cut due to the service underperforming in any way (perish the thought). Indeed, Microsoft makes it clear that it's actually due to the success of the project.

Microsoft wrote on the blog: "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."

So there you have it, the move is all about "economies of scale". Although the level of the price cuts rather suggests otherwise, with a sudden 20 per cent lopping being a pretty serious discount.

The company further underlined its Office 365 successes (not being defensive, at all) by reminding folks of the major clients they've picked up: JetBlue, Patagonia, Campbell Soup Company, Groupe Marie Claire and Tata Steel Europe. Also, we were treated to a reminder that they've recently expanded Office 365, to reach a further 22 territories across the globe.

Businesses who had previously been thinking of taking the cloud plunge may now be tempted, in fairness.

Microsoft also announced changes to Office 365 for education, including making its "A2" service plan (which encompasses the core elements of Exchange, SharePoint, Lync and Office Web Applications) free to not just the students, but also faculty and staff.

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