This was a pleasant surprise to wake up to.

Office 365 – New Lower Prices for Office 365.

My favorite Cloud servies just got a lot cheaper. Especially the SharePoint Storage. It’s down 92% in price. Thats something to note.

Why is it, that Microsft, only 8 months after launch of Office 365, decides to lower it’s prices.

The official reason:

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 centers and economies of skill with our engineers, administrators, and support teams operating the service.

My guess:

As cloud services like iCloud, Amazon and Google is hammering away at market shares, Microsft needs to compete not only with great features but also price. Customers keeps looking at pricing these days, even if the service is better, it also has to be cheaper.

Whats your guess?