Nobody ever got fired for ordering Ron's pizza.Each channel even has individual notification preferences, for instance. Which was all outside the scope of what you wanted to talk about, but once you opened pandora's box on the lunch order it was bound to happen. They'd probably like Dave's just fine if they tried it, but the man-hours disruption of arguing with people about which pizza is best will cost more than the dollar, and some people are gonna insist you need to get a DIY burrito bar, or a specialist ramen delivery. But one dollar on a fifty dollar lunch order just may not matter that much, and people seem to like Ron's. Sure, extra pepperoni is cheaper at Dave's, and the pepperoni is the exact same product. It would be wildly overpriced if I wanted to pay for a private Slack instance for some of my friends or whatever.īut at a certain point, it's like ordering lunch and fussing about how adding extra pepperoni to the pizza at Ron's is $2.00 but at Dave's it's $1.00. I don't really disagree with you - for the price of Slack Enterprise, you could spin up a separate private on-demand chat server in the cloud for each user, so I assume their margins are quite good on that offering. Because Microsoft has positioned themselves in the market to put them in that position. To answer your question, they can't justify it.
Microsoft can offer lower prices and annihilate their competitors through attrition. Microsoft will give you a product for free, but they'll beat the money out of you for the "atmosphere" of Office 365. But at the higher echelons it becomes increasingly difficult to start justifying the price, but now you're locked in for 3 years on your EA and you've got 1000 mailboxes Exchange, dozens of sites in Sharepoint, hundreds of Teams chats, files all across OneDrive, thousands of devices in Intune, hundreds of VM's in Azure, etc etc. Now, that really isn't to say any of Microsoft's cloud services are bad or anything. Microsoft can keep their entry plans lower and then make you sink your teeth in and slowly upgrade your licensing and pay more and more and more to offset those entry level costs they gave you earlier. Microsoft can afford lower prices because they know that the harder you sink in to one service, the more services they can get you on.
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