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The Microsoft logo hangs from a window during the grand opening of Microsoft's first retail store in Scottsdale, Arizona October 22, 2009.
Credit: Reuters/Joshua Lott
SEATTLE |
Tue Oct 19, 2010 2:34pm EDT
SEATTLE (Reuters) - Microsoft Corp launched a fully online version of its popular Office suite of applications on Tuesday as it looks to extend its customer base and beat back rival Google Inc.
The new service, called Office 365, is available as a test from Tuesday in 13 countries, and will be on sale on a subscription basis worldwide next year.
Combining some of Microsoft's existing cloud-based services, it will be available through most browsers, including Mozilla's Firefox, Apple's Inc's Safari and Google's Chrome, and can be used on mobile devices such as Research in Motion Ltd's BlackBerry and Apple's iPad.
That means customers can get access to Office programs like Outlook e-mail, SharePoint websites and simplified versions of Word and Excel without installing software, from virtually anywhere. Customers get access to more features when the software is also installed.
The move strikes a blow against rival Google, which has had some success with its Google Apps service, which provides a low-cost, Web-based alternative to Microsoft's traditional Office software for $50 per user per year.
Microsoft will offer the service to small companies with fewer than 25 employees for $6 or 5.25 euros per user per month.
For larger companies and government organizations, prices will start from $2 per user per month for basic e-mail. A fuller "professional" version will cost up to $27 per user per month.
Office is one of Microsoft's biggest money-earners, alongside its Windows operating system. The unit that makes Office accounted for almost 40 percent of the company's profit last year.
The new service was announced by Kurt DelBene, the new head of the Office business since the beginning of this month. He took over from Stephen Elop, who left to lead phone maker Nokia last month.
Shares of Microsoft were down 3.1 percent at $25.01 on Nasdaq, while Google fell 1.7 percent to $607.14.
(Reporting by Bill Rigby; Editing by Lisa Von Ahn and Gerald E. McCormick)
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Oct 18, 2010 8:53pm EDT
When I read the headline I was like YEah! Finally that baboon Balmer…
What a disappointment
PwlM
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Oct 19, 2010 2:12am EDT
It appears that Mr. Gates has permanently inoculated Microsoft with unfriendly, selfish vibes. When they saw success of the Google’s cloud computing business model, they went gaga over it, screaming: “me too, me too”!
MS is “developing software for servers intended for cloud computing”. Their notion of clouds is that little steam puff from the pressure cooker in your kitchen. In other words, “cloud” is that clunky chunk in the basement of their customer’s IT department.
Customers don’t need software, which is out there, in the wide world web cute, immense, puffy clouds. Try video editing on youtube. All you do is play with the mouse and your creativity. Thanks, don’t need any software!
“1 + 1 is 2, and that’s my intellectual property!”
puma202
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Oct 19, 2010 2:29am EDT
I was thinking the exact same thing when I saw this article. Microsoft needs new leadership, everyone at the top needs to go. I try as much as possible not to use Microsoft products. The company is way out of touch.
kevAgainstUsury
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Oct 19, 2010 3:32am EDT
@pwIM, I was thinking the same thing. MS needs a new CEO from outside the company to try some new ideas while slaying sacred cows.
Staying focused on operating systems, software development tools, and services around those could be a beautiful thing.
Not everything has to be “windows compatible” to be successful.
rreader22
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Oct 19, 2010 4:07am EDT
“Hate the Big Guy” is a typical American attitude. You all need to read “Soul of the Machine”….then you will realize how difficult it is to design software operating systems that work with everybody’s elses products. You might just attain a bit of emphathy towards Microsoft and the people they employ to design and write the machine code.
GrissfortheMill
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Oct 19, 2010 5:10pm EDT
I have cursed Microsoft on & off for more than 26 years. More cursed than appreciated.
A money grubbing company that can’t write good software. Spoilt good applications by overprotectionism.
The Windows operating system evolved into an ever increasing spiral of Junk – consuming massive increases in hardware resource without significant gain.
God bless Google for their increasingly widening range of high performance solutions focusing first on information management, writing the world’s 1st high performance cross platform operating system and shortly to take over global telecommunications.
My life is becoming easier at last – pity that this comes in my twilight years
investeast
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Oct 19, 2010 5:15pm EDT
I’m not a big fan of M$, but Sharepoint is an excellent product, as is their new Office 2011 for the Mac.
Windows Phone 7 is going to surprise a lot of people, Google most of all.
Granted, Ballmer has been more of a ball and chain for MS and its share price, but nobody lasts forever. The day he leaves watch MS’s share price, it WILL rise…
vaporland
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Oct 19, 2010 10:13pm EDT
Timing on this makes sense… Ray Ozzie was the prime force in helping get MS to wake up to the need for breaking the MS machine/OS/Apps suite tie-up, and the rollout of this as he steps back fits.
Google’s Apps struggled initially to rise above the barely-acceptable-alternative-to-OpenOffice they represented, MS hater posts above notwithstanding. Office 2007 absolutely blew away anything cloud-based for enterprise users. There’s no way I’d have survived suggesting to the board of the US$ multibillion company I oversee security and messaging for that Google Apps’ freshman entry was worth our time of day. To Google’s credit, they’ve been working their tails off to improve. So has MS.
I still won’t suggest switching to my company, but I’m not the target audience. I know how much infrastructure and staff I invest in to keep my MS core apps running smoothly (which they do), and there’s simply no economy of scale fitting a small company’s needs outside of the cloud now. MS and Google are both smart to pursue this approach (though at $50/year, Google’s priced themselves a bit more competitively). The always-up-to-date+supported approach the cloud provides is absolutely the model I’d pursue for a smaller company now, though.
johannesg
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Oct 20, 2010 1:49am EDT
Isn’t Google Apps free for companies with staff size up to 50 workers? At least we pay nothing.
Finadept
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