Currently, Microsoft only allows the purchaser of a student version of its Office suite to install and activate the software. However, the company will allow future versions of the software package to be activated on two other systems owned by members of the purchaser's household. Product Activation, an anti-piracy measure, currently allows Microsoft to control the number of machines its software is installed on.
Tony Wilkinson, Microsoft Office product manager, Microsoft Australia, gave strong indications that the decision was driven by piracy considerations.
"It's clear today that there is a very high piracy rate in that market. What we want to do is have a product that's going to be relevant and accessible. To some extent making three activations available does address that," said Wilkinson.
That doesn't mean that pirates are "driving the price-point" for Microsoft's software in the consumer segment, said Wilkinson. Any tendency the pricing policy will have in reducing piracy is just a "side-effect," he said.
However, according to one analyst, the new policy will ease the conscience of those who make illegal second-installations of the software.
Peter Cullen, Ideas International senior analyst, said Microsoft is simply accepting the realities of the consumer market and legitimising its market share.
Since introducing product activation to its Office package in 2000, Microsoft has had the opportunity to develop a picture of the levels of legitimate and illegal use of its software in the consumer market.
"If [product] activation is effective, then that's probably going to stop some other student using the product that they never would have sold a licence to anyway," said Cullen. "What' they're saying is 'let's accept reality and have three converted MS [Microsoft] users instead of just one, and no revenue impact in the process',"
According to Cullen, parents were unlikely to buy multiple copies of an Office package for their school or university-age children. Whereas before, said Cullen, people would have "stretched" the provisions of the licensing to make "slightly illegal" second installations of the software, the new licence measure would make them feel better.
"I don't see this as a revenue-lost opportunity - it's more a case of legitimising growth in a market segment that would have otherwise [be] seen as something someone's got guilt complexes about," he said.
StarOffice is driving MS to allow 3 users to use the one purchased CD! That's what the story is "really" about.
Think about it for a second will yas! If you had to choose between an application offering 2>unlimited installations (StarOffice), as apposed to one that is currently offering one (MS Office), which would you choose? This isn't about trying to fit in with piracy at all, but a phychological attempt to persuade what the majority or consumers do anyway (ie. install same software on 2-3 computers).
A family home with 3 PC's ain't gonna go out and buy 3 compies of MS Office now are they?