Microsoft CEO Nadella
PHOENIX, Dec. 7 (Xinhua) -- Microsoft Corp. is using its dominant market position in productivity software to force some Office Suite users to make a big decision: either pay more or commit to extending their subscriptions. However, Microsoft's approach has been resisted by customers.
In 2022, Microsoft will launch a new business experience called Office, changing the way customers buy software through business partners. Although the company has not publicly announced specific price changes, it has informed partners that monthly fee-paying institutions will face a 20 per cent price increase unless they switch to annual subscriptions.
For Microsoft, locking customers into longer subscription schedules means improving revenue visibility and reducing concerns about user churn, a key factor in the subscription business. However, some partners have launched counterattacks on multiple forums. People have been vocal on Reddit, with more than 1,400 people signing a petition on the Change.org calling on Microsoft to cancel the price increase.
People familiar with the matter said the boycott prompted intensive meetings between Microsoft and its partners. "Microsoft offers flexible purchasing options to meet the diverse needs of our customers and we do not publicly disclose information about how we charge and price our partners." A Microsoft spokesman said. (Author/Yu Yu)
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