Tesco takes on Microsoft with cut-price software launch

by Jennifer Whitehead, Brand Republic 02-Oct-06, 08:45

LONDON - Tesco is to take on Microsoft for a slice of the £8.8bn UK software market by launching its own cut-price range of programs that will include office and anti-virus products.

The software is being developed for Tesco in a partnership with Formjet. It will include six products at the outset, ranging from: a package that will rival Microsoft's Office suite; a CD/DVD authoring software; a personal finance program; two security and antivirus products; and a program that can be used to edit photographs.

The basic Microsoft Office package retails at £199, but Tesco will sell its products for under £20. They are due to launch this month in 100 stores and be rolled out over the next 12 months.

The software will be sold in conjunction with hardware, following Tesco's entry into the PC market earlier this year. Formjet is building a dedicated TescoSoftware website, which will provide support.

A spokesman for Tesco said: "It is the first time a retailer has released a fully branded software range, including support and websites to rival the big, existing companies such as Microsoft, Symantec and McAfee."

It adds another non-grocery division to the Tesco businesses, which also includes various kinds of insurance, internet services, mobile and fixed-line phones and contact lenses.

Daniel Cook, a buyer at Tesco, said: "With more people working from home and schools encouraging greater use of IT, the demand for home computing equipment is bigger than ever."

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the Forum.