Yesterday, Microsoft launched the much awaited Office Online App. This is the Online Avatar of possibly the most popular software on the planet - Microsoft Office. MS calls it a slimmed down version of its hugely popular Office suite. It includes online versions of Word, Excel, PowerPoint and OneNote. (For those who have not used OneNote, it is a pretty cool software for taking notes and organizing them for easy retreival later). I beleive, this is a significant step in the history of Microsoft (and for its users like us) for the following reasons.
A Big Gamble
This is a huge step. MS Office is a big cash cow for Microsoft. Last year it earned around 20 billion USD, only from MS Office. This is almost the size of the revenue of Google or Oracle - marginally less. It is also Microsoft's most profitable business. Offering it free on the internet is a significant step, the one that can potentially disturb a proven top-line and bottom line. Why would MS do it?
I think its a big gamble.
One one hand, this is a strong (and better) answer to Google Docs. (More of the comparison in a separate post.) This will restrict potentially large attention to Google docs. If MS can offer a free software with the same user experience as MS Office, why would somebody look at Google Docs? This would be a major win for MS.
On the other hand it can impact revenues as MS does not intend to make money out of advertising on Office online. However, major revenue for Office has been typically from Enterprises, which still have a long way to go online. The profits from retail customers might be affected, but then MS can absorb it, given that Office is most profitable. Its a gamble worth a play.
Online or Offline?
The Docs space is getting more exciting. Google, the giant behind promoting online docs from begining added offline capabilities with Google Gears last year. Now, the king of offline Office productivity tool Microsoft is going online. At the end of the day, the consumer has much better options now. This may not be of so significance to Enterprises, however, non-profit orgs, Universities, communities and retail customers will be hugely benefitted. Awaiting to hear from IBM to see if it has any plans for online version of Lotus.
Wider Access
With online version, the world's most popular software just got much wider reach. Apart from Windows users, Mac and Linux users can also use MS Office. Although Office for Mac always existed, it was more expensive. Linux users always had to restrict themselves with Open Office. Office Live works on IE, FireFox and Safari.
Google's Stand
Recently Google has been making a case for companies not to upgrade to Office 2010 but to use existing version and add Google Docs. Would wonder what would be the effectiveness of this message now? In stead of adding Google Doc, why won't I add Office Live instead? Google has large ambitions in Enterprise space - evident from this yr's Google I/O key note speech. Google Docs has been one of its major pillars in this space. With Office Live, it definately has a reason to worry.
Integrations
MS is expected to launched enhancements to Hotmail/Live Mail to integrate Office Live. This means if you receive an office document through email, you could view it using Office Live. Pretty useful.
The docs are stored on MS's cloud based file sharing service - SkyDrive. This would pump some life to this service.
MS labs has also introduced a Facebook app for Office. http://docs.com/ It allows creation of MS office documents online and sharing with Facebook connections.
Finally, I hope this free incarnation helps reduce piracy of such a beautiful software.
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