Office X. or Mac OS X the problem?
Saturday, July 27th, 2002Microsoft has recently been very vocal about not being able to sell the 750,000 copies they hoped they would. Instead about 300,000 copies have been sold at this time. Microsoft claims that this discrepancy is Apple’s fault because of the low Mac OS X adoption rate due to bad marketing.
So who really is to blame? Microsoft or Apple? Surely someone is at fault over this. My theory is that while Apple had been a bit slower than anticipated in throwing it’s full support behind OS X, which was with good reason, Microsoft is mainly at fault. Apple couldn’t throw its entire well being behind the very first release. It was just not ready for prime time. It lacked DVD support, and had some bugs. Just like Microsoft has had with their first releases. With Mac OS X 10.1, Apple had gained enough experience with the OS, to promote it as a really usable OS. Which at that time it became, with one exception.
Every computer needs an office productivity package, such as Microsoft Office. Microsoft has been the leader in Office productivity since the early 90’s. Other contenders such as Corel have left the market for quite some time. Apple bundles AppleWorks, formerly Claris Works which is more than adequate for most home applications.
My theory is that Microsoft isn’t selling enough copies of Office X. because of the hefty price tag. Office can cost a few hundred dollars. Most home and small business users don’t have that money just ready to throw around. Especially with today’s economy. With AppleWorks shipping free on most Macs, and that being very easy to use and already included. What entices people to spend money on software that does what they already have? For large businesses, the expense is a must, but little Johnny can do his book report just as well with AppleWorks.
I for one lack a reason to buy right now because I have no real need for OS X. All the software I use on a regular basis is available for Mac OS 9 and Mac OS X. I have Office for Mac OS 9, and not for X. Office is the only product keeping me from OS X. But I have no strong reason to invest at this time. When Mac OS X appears to be mandatory for new software, I will consider making the switch 100%. But for now, Mac OS 9 is stable for me (haven’t had a crash in months), fast enough, and all the software is there including Office. I am never in a situation where OS X is a must for me. That point hasn’t been reached yet. When I switch to OS X full time, I will then want to buy Office for Mac OS X, but if I don’t want to waste money buying it now, when I am perfectly happy in OS 9.
If Microsoft would make it reasonable to upgrade from all previous versions, not just 2001, and made Office prices more reasonable, it would sell much better than it has. $300+ dollars for a software package that really isn’t needed by the average home user just isn’t practical. AppleWorks is a quality product, and is already there. StarOffice will also be coming to Mac very soon providing a more powerful alternative.
Perhaps reaching a deal with Apple that would include Office X at a substantial discount to home users who purchased OS X or a new computer in the past year?
The bottom line is it will take more than marketing to get Mac users to upgrade Office when a good product is already available at no charge. Microsoft wants home users to pay a price that many businesses claim is to high. It just won’t work anymore. Home users shouldn’t need to take out a bank loan to buy software. There are PC’s available for nearly the same price as this software. Bulling the markets is a thing of the past. This stunning fact is angering Microsoft. Hopefully in the near future Microsoft’s Marketing will re-evaluate the market and see that home users won’t spend hundreds on software they don’t really need.