The history of MS Office started on November 19, 1990, when Office for Windows came out for use with Windows 2.0. With over 30 years of history, it’s still the most popular office suite to date. With such a status, it’s no wonder Microsoft asks for a pretty penny for all the Office apps. You want premium features, so you’ll have to pay accordingly. This short sentence could conclude the entire article, but there’s much more to it. I’m not saying that the retail price is fair, but there are several reasons why Microsoft Office is so expensive. This article will cover the reasons behind such pricing and how to save money when purchasing Microsoft Office.

How Much Does Microsoft Office Cost?

The initial pricing depends on the version you’re going to choose. Microsoft offers a standalone version with a single payment and a subscription-based plan with different pricing tiers. Both have their pros and cons, which we’ll cover in this section.

Office 365 and Office 2021 Comparison 

Office 365

Microsoft Office 365 is the best option for those that want the entire package without compromises. It contains everything the service offers, and your account can be shared with up to six people with a Family plan. It’s also the only option that provides you with constant updates, whether for commercial users or personal computers. However, it comes with a monthly or yearly fee, which may not benefit everyone.

Pros:

• Up to six people using one account.
• Access to all apps.
• OneDrive storage.
• Free and constant updates.
• Customer support.
• Windows 11, 10, macOS support.

Cons:

• Monthly/yearly payments.
• Pricing changes.
• Overall cost.
• Most features require an internet connection.

Office 2021

Office 2021 is the best option if Word, Excel, PowerPoint, and Outlook are all you need. It’s the most suitable option for everyone with one major disadvantage – no updates. If you want a newer version of the Office package, you’ll have to pay again, and you won’t get additional features present in Office 365.

Pros:

• One-time purchase.
• Unlimited access to all core apps.
• Classic experience.
• Security updates.
• Windows 11, 10, macOS support.

Cons: 

• Single license.
• Limited features compared to Office 365.
• No upgrades.
• No customer support.
• No support for older versions of Windows.

Reasons Why You Have to Pay Premium

With the comparison out of the way, it’s time to discuss the major reasons behind its pricing. It’s no secret that Microsoft has increased the pricing of Microsoft Office greatly over time, and the ongoing economic crisis isn’t helping either. Let’s discuss the major reasons behind it.

Safety & Security

One of the main reasons why Office is so expensive is its security. Despite typical home usage, many businesses wouldn’t even exist without Office's features. It drastically enhances the collaboration and productivity of your team, but without solid security features, it wouldn't be worth much. Office offers state-of-the-art security to its data centers and infrastructure. It’s almost impossible to crack the security levels of Microsoft’s data centers, and it tells you something about the safety of their software. 

Many business documents are stored in OneDrive, which provides real-time safety scans for documents and other media to prevent cyber threats. For this reason, Microsoft’s cloud service is one of the safest you can find. Of course, having such an advanced security system requires significant spending, ultimately increasing the retail price of Microsoft Office.

Original Features

The most obvious reason for Office’s pricing is its features. Whether you're using Office 365 or its standalone version, it’s usually packed with so many features there’s no way you’ll use them all. Let’s have a look at the latest features of the Office package, so you’ll know exactly what you’re paying for.

Smart Lookup

An outstanding feature for all writers wanting to quickly check more information about a specific word from inside of a Word document. Articles, definitions, and images are all available without minimizing your document. Additionally, it’s also available in other applications like Excel, PowerPoint, or Outlook.

Simple Sharing

You can quickly share documents between multiple devices and your team members. The Simple Sharing button can be found in the bottom ribbon of MS Word, Excel, and PowerPoint. It’s not only used to share files but also to change permissions and accessibility.

One-Click Forecasting

A unique feature for Microsoft Excel allows you to create a forecast based on historical-time-based data. It creates a new worksheet containing a table of historical and predicted values and a chart expressing this data. It will help you predict future sales, inventory requirements, or consumer trends. This algorithm is also useful in predicting explicit, short-term forecasting.

Versioning

This feature exists to fix problems with file formatting. Sometimes you might accidentally delete or change the file format of your document. This is where Versioning comes to the rescue. It will reverse the changes made to the document making it usable again. Simply click on the file, select History, and choose your original document version. It’s also useful for tracking all changes made to the document and viewing different versions at any given time.

Microsoft Charts

Microsoft Charts are made to help you deal with different tasks, each containing new possibilities and layouts. Here are a few examples:

• Waterfall. A waterfall chart helps show a running total as values are added or subtracted. It’s presented in the form of floating columns.
• Treemap. Treemap is used for a hierarchical view of your data in the form of rectangles. It displays everything by using colors and proximity. 
• Whisker. This chart is used for displaying data distribution. The liners extending for the boxes are known as whiskers and take much less space compared to other charts of this type. 
• Sunburst. Used for displaying hierarchical data represented by one ring or circle with the innermost circle at the top of the hierarchy.
• Histogram. It’s a common analysis tool in the business world. It’s a column chart that shows the frequency of the occurrence of a variable in the specified range.
• Pareto. Mostly used for quality checks. It contains both columns sorted in descending order and a line representing the cumulative total percentage.  

As you can see, the possibilities of analyzing critical data are basically endless.

Other Features                 

Microsoft Office packs other functionalities that aren’t document related, but they exist to help you with workflow and productivity. Here are a few examples:

• Skype Integration.
• Outlook Groups.
• Sharing documents as URL.
• Simultaneous collaboration.
• Cross-drive compatibility.

Recognizable and Powerful Software

The most obvious reason why Office is one of the best-selling software for document work. All Office applications are perfect for office work or preparing professional presentations. Not to mention the new features added with each release and Microsoft Word being the most powerful word processor to date.

It’s been around for decades, and due to its recognizability, it leaves Google Workspace far behind, for example. On the other hand, free alternatives like Libre Office can’t keep up with features. Yet another reason why Microsoft charges so much for its software.

Ad-Free Software

When it comes to paid software, an ad-free experience is nothing special. However, if you’re looking for a free Office alternative, keep in mind they have to make revenue elsewhere. This is where annoying ads come into play. You may find a completely free version of Office alternative, but being bombarded with ads will negatively impact your performance. 

Microsoft spends hefty amounts of money to keep its software ad-free in return for a one-time purchase. Thanks to this approach, users are willing to spend more money on MS Office rather than use free alternatives.

Development

Making such an Office suite takes time and a lot of research. To ensure the highest quality possible, Microsoft hires senior developers and researchers to leave no room for errors in their software. Although the interface stays the same throughout the versions, each release presents relevant changes for professional use.  

Most users are eligible to test out beta versions of the software, so they can send feedback about new features or point out mistakes. The entire process takes a hefty amount of time which increases the retail prices of MS Office.

Backward Compatibility

File extensions of MS Office have changed throughout the years. Files like .doc, .xls, and .ppt are still supported in the latest version of Office, thanks to its compatibility mode. It activates automatically once you open documents saved in older extensions. Not only that, but you can freely edit these documents and save them in newer formats. It wasn’t so obvious in older iterations of MS Office, but now it works as it should.

Support Platform

Unified is a special support platform reserved for Azure and Office 365 users. However, you’ll have to pay extra when using this feature, but you’ll be given proactive support with in-depth solutions to your problems. It also comes with additional services to improve your workflow and work efficiently with MS Office.

I assume this solution might be useful for large companies working on multiple advanced projects. Thanks to reactive and in-depth solutions given to you by a professional, it must be a huge time-saver.

Monopolist Approach

Microsoft was a monopolist regarding Windows for quite some time. They’ve signed plenty of government contracts, meaning their product was installed in countless workplaces. Whether it was school, office department, or any place tied to the government – they’ve all had Windows. Not only that, but many companies working for such institutions also had to play along and invest in the operating system.

It’s a similar situation with MS Office. You must invest in Microsoft's software if you want others to read or edit your documents. And since people are more or less used to working with their software, they’re willing to pay more out of habit. Microsoft can charge as much as they want for Office solely of its long-term popularity.

How to Save Money on Microsoft Office?

As you could have read above, MS Office is pretty expensive, especially if you want to buy it on the official website. Fortunately, there are a few ways to get Office for a discounted price. So instead of going straight to Microsoft Store, take a look at these.

Third-Party Keys

Third-party sellers buy software keys in bulk, resulting in a huge discount. At RoyalCDKeys, we do exactly the same, offering games and software for discounted prices. The biggest advantage for you and every consumer is that you get fully working, legitimate software for only a fraction of the retail price. For example, you can purchase Microsoft Office 2021 Pro Plus Key Retail Global for a little more than $10, which is a bargain considering the official price.

Student Discounts

Student licenses have been available almost as long as MS Office. As long as you prove you’re a student, you can get a significant discount on Office products. Office 365 Education is free for teachers and students at the time of writing. Simply head to the Microsft Education website and follow the instructions to claim your free copy. We don’t know how long they will keep it that way, so better hurry before they change it again.

Free Alternatives

If you’re not dead set on working with Microsoft, you can check these free alternatives instead:

• iWork. Pages, Numbers, and Keynote are part of the free office package that comes preinstalled with almost every Apple device.
• Google Workspace. A free alternative to Office Online. It’s available as long as you have a Google Account.
• OpenOffice and LibreOffice. Free office suites that offer everything you’ll need for day-to-day tasks – word processing, spreadsheets, etc.