Microsoft is going to sell the next version of Office called Office 2013 no shock there.  Office 2013 is going to be subscription based.  The new edition has changed dramatically to better match Windows 8.

An Office 2013 subscription will cost

$8.33 a month or $99.95 a year for five different devices for an number of users

That’s for Office 365 Home Premium, which includes Word, Excel, PowerPoint, Outlook and OneNote, but as a subscriber you’re now entitled to all software updates and access to web services included with Office such as continually updated templates.  Microsoft is also throwing in 20GB of SkyDrive storage with the subscription as well as 60 minutes of Skype minutes per month.

Office 365 Small Business Premium priced slightly higher as Microsoft business products always are not surprising.   The package is similar, including ongoing updates.  The business edition also includes more integration with SharePoint, Lync and Exchange services.

$12.50 per month or $149.99 a year for five different devices for a single user or employee

Office will be available as a traditional one-time purchase.

$219.99 for Home and Business edition

$399.99 for Professional edition

Office 2013 releases Oct. 19.  Microsoft will offer an upgrade package to anyone buying Office 2010. If you buy the Home Premium edition, you’ll get the first year of your Office subscription free, and for the Small Business edition, you’ll get three months.  So if you can’t wait to buy office you will get a free upgrade.  Microsoft expects a subscription service will make the most sense for many Office customers