Microsoft is slashing some SaaS prices by 33 percent, confirming a scoop from earlier today. Sources close to Microsoft say this is the start of a SaaS price war with Google Apps, with VARs and MSPs potentially getting squeezed. But Microsoft is reminding reporters that more than 7,000 partners are building SaaS practices around Microsoft Business Productivity Online Suite (BPOS), Exchange Online and SharePoint Online, among other offerings. Here's the updated report from The VAR Guy.