
Alain, you are correct that Microsoft is doing this to gain market share.
You are incorrect that the current price you see for office is set high so that Microsoft can make a nice profit.... (See below...)
And Kwac, this isn't "dumping" per se.
The issue is that Microsoft, is yet again using its position as a monopoly to edge out any competition in a marketplace by being able to seed the market place with a loss leader.
When the courts ruled against Microsoft's practices, it raise the prices for office to what it should have been in the beginning. So the current price for office should have been the original price. (give or take). And how do you dump software which isn't physical?
The point being that Microsoft used its vast capital resources to starve out the competition and then capture or hook the marketplace on their products. SMB companies can not afford to migrate from one product to another. There isn't a net gain from switching platforms while there are costs associated to the migration.
If I were Sage, or the DoJ or its EU counterpart, I would open an investigation against Microsoft. (Sage? they should consider a lawsuit.)
What would be considered allowable business practice for a company may be considered illegal if said company was declared a monopoly. (It its.) And there is already precedence of this in the word processing industry. (WordPerfect anyone?)