Microsoft said today that it's cutting the price of SharePoint Online, Exchange Online and other programs in its Business Productivity Online Suite -- versions of its server programs that it hosts for customers for monthly subscription fees, as an alternative to traditional versions run from customers' own servers.

The company also said it signed up hundreds of new customers for the offering, including high-profile names such as McDonald's and Lions Gate Entertainment.

The price for the suite will drop to $10 per user each month, from the previous $15 subscription rate. The price for Exchange Online as a standalone service will drop to $5 per user per month, from the previous $10 rate.

Microsoft's price cuts come at a time of increasing competition in the market for hosted software. Among other developments, Google Apps recently scored a high-profile victory by persuading the city of Los Angeles to switch to its email service. However, competition didn't play a role in the pricing decisions announced today, said Ron Markezich, the Microsoft Online corporate vice president, in an interview this afternoon.

[Update: A Bloomberg News story quotes an executive from one of Microsoft Online's new customers, Rexel, saying that price competition from Google does, in fact, appear to be influencing Microsoft's pricing decisions.]

Markezich said the move lets the company eliminate promotional pricing that had been in place since last year, creating a simpler pricing structure. In addition, he said, the addition of new customers has helped the company make its services run more efficiently, based on economies of scale and investments in software improvements.

"The other aspect that came into play, more than anything, was the economy over the last year," Markezich said. "We see price being a higher consideration than it was maybe 18 months ago. Rather than confuse people with a promotional price, we'd rather just go in with a list price that's very clear and competitive."

Asked about the city of Los Angeles' decision to shift to Google Apps for email, Markezich acknowledged that Microsoft Online partners originally competed for the business, but he noted that the city contract ultimately focused on email, and the city has made it clear that it's not planning to switch away from traditional Microsoft Office programs from employee computers.

New Microsoft Online customers announced today include Aon Corporation, Lions Gate, McDonald’s Corp., Rexel, Swedish Red Cross, and Tyco Flow Control. The company also announced the impending launch of Microsoft Online trials in Brazil, Chile, Colombia, Czech Republic, Greece, Hong Kong, Hungary, Israel, Malaysia, Mexico, Poland, Puerto Rico, Romania and Taiwan.