Microsoft unveiled an ambitious plan at last week's Comdex show to change its retail and licensing practices, starting with its most popular product, Microsoft Office.

The software giant will allow companies and single users to purchase the forthcoming Office 10 product for a discounted price, but with an additional ongoing annual fee. The plans are intended for smaller volume users of the suite.

In return for the annual charge, users will receive all Office upgrades for the period, including full point releases.

"With the release of Office 10 we are taking a significant step towards our vision of an Office.Net subscription service," said Steven Sinofsky, vice president of Office at Microsoft. "Software subscription for Office 10 offers an exciting and innovative way for home users and small businesses to experience the latest Office software."

Subscription packages will be sold through retail chains in a boxed package along with the Office 10 application suite.

The only difference between the subscription and non-subscription versions of the software is that the licence for the former will expire after 12 months. The more expensive non-subscription version will have an open-ended licence as usual.

Renewals of subscriptions can be handled via the internet, over the phone or in a computer store.

Installations of Office where the licence has expired will still operate for the loading, viewing and printing of documents, but will not function for editing and saving work.

First published in Computing