Microsoft has recently released a beta version of Office 365 – a new program that combines a suite of Microsoft software online in a cloud service. It will allow people to collaborate from anywhere on any device on a secure server. Office 365 works with most popular browsers and smartphones, and is likened to Google Apps, a similar cloud computing program.
Microsoft Office Suite has always generated significant revenue, and is rightly categorized as a cash cow. With the inception of Google Apps, (specifically Google Docs, which includes presentations, documents, and spreadsheets) Microsoft has undoubtedly lost business to those who now have the option to use the former program, which is quite similar and free of charge. The development of Microsoft Office 365 could be perceived as Microsoft’s answer to Google Apps in the hope of perhaps regaining a lost portion of market share.
Office 365 is an SaaS program (Software As A Service) that does not require anchorage to a desktop, and is relatively cheap when compared with Microsoft Office. Instead of paying $500.00 per program per computer (Office is a “single seat” program, which means that you're allowed to have one unique software disc installed on one machine at a time), small firms can utilize this program for $6 a month (this all-inclusive “small business” price caps off at 25 seats). This price is competitive with Google Apps Premier Edition, which is $50 per year. It is a time and cost-effective solution for any small business that requires a set of high caliber office suite programs. Larger firms will probably ignore Office 365 because it is geared more toward small businesses with developing capital.
As with most cloud computing programs, the benefits of Office 365 are obvious and plentiful. Costs are significantly lowered and organizations, especially small firms with modest overhead budget, would save a lot of money by resorting to this utility. The nature of the information cloud allows for increased storage, more than feasible on private servers. Employees can access information wherever they are, and the process of collaboration, no longer hindered by conventional logistics, is streamlined. In addition, without the need to worry about regular maintenance of private servers, firms can place more emphasis on innovation and creation of value for their customers. Alas, cloud computing software is not devoid of faults. Storage of data on distant servers will increase the time it takes to retrieve that data, and in the business world, time is money. Furthermore, entrusting a third party server to store sensitive information is accompanied by an increased risk of sabotage and data leak.
Evidently provoked by the release of Google Apps, it was only a matter of time before Microsoft developed a similar application to avoid losing more profits. While Office 365 will challenge Google Apps within the small business realm, it is not likely to convert other Google Apps users such as students or those with little discretionary income. While the standard version of Google Apps is free, there is no free version of Office 365, and this may be the most influential aspect of consumers’ purchase decision should they consider these two options. It will be interesting to see how Google and Microsoft compete for market share in the future.
http://www.microsoft.com/presspass/press/2010/oct10/10-19office365.mspx
http://www.infoworld.com/t/cloud-computing/office-in-the-cloud-take-two-598?page=0,0
Matt Girandola
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