January 7, 2009 7:37 AM PST

Redmond's roost: Most Mac owners still buy Office

by Matt Asay
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Apple may be the poster child for showing the industry how to compete effectively with Microsoft, but the company isn't free of Redmond's long arm just yet.

Despite spending years, and millions of dollars in research and development, on its own suite of productivity software, 77 percent of Mac users stick with Microsoft Office, according to a TechFlash report.

I love my Mac, but I couldn't use it without Office. In this, I'm sure I'm not alone, which must give Apple pause whenever it celebrates its rising Mac market share.

Perhaps this is why Apple is releasing a SharePoint-esque knockoff designed around its Pages and Numbers programs, taking Microsoft head-on in document collaboration.

The strategy won't work. Until Apple actually starts winning market share with its iWork suite, it won't matter if the five or six customers who actually use it can collaborate with each other.

No, to end Microsoft's latent stranglehold on its Mac market share, Apple needs to do one of two things vis-a-vis office productivity: go disruptive with a Web-based offering in the manner that Google has, or invest deeply in OpenOffice.org to make it a viable, rock-solid enterprise competitor to Microsoft Office. The first path leads to Mountain View (Google). The second? To Menlo Park (Sun).

Regardless of which path Apple takes, at some point, it must address Microsoft Office. Yes, people could just run Office in a virtual machine or through Boot Camp, but that really only deepens its dependence on Microsoft.

What do you think Apple should do? Or does it matter?

Matt Asay brings a decade of in-the-trenches open-source business and legal experience to The Open Road, with an emphasis on emerging open-source business strategies and opportunities. Matt is vice president of business development at Alfresco, a company that develops open-source software for content management. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure. You can follow Matt on Twitter @mjasay.
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by shadowself January 7, 2009 8:09 AM PST
Why *must* Apple address Microsoft Office?

Why don't you?

Why don't you point out that for $499.95 (list price) you get several more pieces in MS Office for Windows than you do for Mac OS X (Access, Contact Management, Accounting, etc.)?

Why don't you point out that while Microsoft is claiming there's an "Apple Tax" for buying Macs (which is debatable depending on the configuration and unit chosen), that there is an undeniable -- and undebatable -- that there is a *Microsoft* Tax for anyone that wants to be cross platform with Office!

Once upon a time Office was virtually identical across Microsoft's OS and Apple's OS. This started to diverge in the 90s. This has continued to diverge since then. The most egregious move recently by Microsoft was the removal of VBA from the Mac OS versions -- even in the small subset of applications that the do include in the suite.

Beat up Microsoft for this. None of it is Apple's fault.
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by aka_tripleB January 7, 2009 8:46 AM PST
How can you say non of it is Apple's fault? What did Apple do to try to prevent Microsoft's dominance? Did it support Corral to keep its suite competitive? Has it shown any interest in supporting the open source initiative? Apple's own office suite hasn't even been available for four years quite yet. And do you really expect Microsoft to continue include software that was never included in the most expensive versions of its software for its own operating system? It's amazing that Microsoft even supports both system architectures of OS X with them being so different. To say that Apple has absolutely no fault in this is far from the truth.
by jlm429 January 7, 2009 12:43 PM PST
i agree, apple doesn't need to address it. Just step out of the way and let google compete against ms. Apple is wasting it's time.
by dhavleak January 7, 2009 4:52 PM PST
My thoughts exactly -- how on Earth did Matt come to the conclusion that Apple *must* address Microsoft Office?

Matt -- I've said it before and I'll keep saying it -- when you write about FOSS related stuff, you generally make sense. When you write about Microsoft, you make no sense. It's clear that you approach any Microsoft topic with one thing in mind -- how it can be brought to its knees. That's the only reason you're so convinced that Apple *must* address MS Office.
by povich January 7, 2009 8:20 AM PST
So what. Folks will continue to buy Macs in increasing numbers because they CAN run Office on a Mac without needing the PC hell of windoze. And am in total agreement with shadowself comments.
Reply to this comment
by john55440 January 7, 2009 8:30 AM PST
>the PC hell of windoze.

Oh please. I am running Vista-64 SP1 Preinstalled, and it works just fine. You have had way too much of Apple's Kool-Aid.
by kelmon January 7, 2009 9:40 AM PST
@john55440

Lucky you. I just find Windows annoying even when it is working "properly" and therefore use a Mac instead. This isn't Kool-Aid but just personal preference. Just learn to accept that not everyone likes Windows and we'll all get on just fine.
by MSSlayer January 7, 2009 10:22 AM PST
John,

Just because you have low standards and don't mind that your PC run slower in Vista doesn't mean everyone else is that way.
by ckurowic January 7, 2009 8:31 AM PST
Mr. Asay: For someone who digs Linux that has less than 1 percent market share, how dare you claim that only "5 or 6 people" use iWork? That is ridiculous. iWork beats the hell out of Office any day, you'd know that if you ever used it. It is a fantastic product. I continuously wow my college professors with documents created in it, and other students always ask me "dude, where in MS Word is THAT?!". I am ALWAYS the designated document designer for our projects as well.
Reply to this comment
by odubtaig January 7, 2009 9:45 AM PST
I have a question: how many people can you send the files to in the full expectation that they can open and edit them? You say you're always the designated document designer. Does this mean that you're also the only person on your course who has iWork? Could anyone else on your course even preview your files?

One of the most important things in the world of work is the accessibility of your work, that anyone can open and edit your work. Right now, thanks to the hidden nature of MS formats, that means if 90%+ of people use MS you send them files for MS. I don't give a monkeys if iWork gives me some kind of euphoric high when I use it, if I can't work 100% with any MS Office files it's useless to me and most other people for anything but personal projects.
by kelmon January 7, 2009 9:47 AM PST
Er, no. Look, I have iWork 08 and it's great for some things but it certainly does not beat MS Office (Mac or PC versions). Keynote is excellent and Pages is pretty acceptable these days but Numbers is no Excel and Word is most certainly the better word processor. I try to use iWork as much as possible but there are things that it just cannot do (perhaps fixed in the 09 version?) and it certainly is no use in a Windows environment such as I have here at the office. For example, while Pages can definitely produce some good looking documents, try producing one that has portrait and landscape pages in the same document.
by odubtaig January 7, 2009 9:53 AM PST
Kelmon: You just hit on one of my bugbears for OOo too. I like it for a lot of things but the portrait/landscape thing is a proper pain at times.
by samkass January 8, 2009 6:54 AM PST
odubtaig, every application on a Mac can export to PDF, so static previews are not a problem. But the new iWork '09 makes it even easier. iWork.com lets you export the fully functioning document to the web, so you can review your Keynote presentation, spreadsheet, and/or pages document similar to Google Docs.
by odubtaig January 8, 2009 8:29 AM PST
Right, so at what point can I download this to my computer and edit it without iWork? What happens when I'm offline?
by aforslund January 7, 2009 8:46 AM PST
I've never owned a PC as far back as 1991 when I got an Apple Mac LC. Today I still own Apple computers and they still work great without Redmond. Through ClarisWorks, AppleWorks and now iWork they all do just that. Work.
Reply to this comment
by aMUSICsite January 7, 2009 8:46 AM PST
Open office is the way forward anyway...
Reply to this comment
by polaris20 January 7, 2009 8:55 AM PST
I only use Office 2008 because the rest of my office is Windows/Office. If this were a home PC, I'd definitely just do OOo 3.0, which is really nice. And free. iWork is great and all, but OOo does everything I need it to do, without the $80.
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by danielwsmithee January 7, 2009 8:59 AM PST
iWork is great for college students and home use, but in the enterprise world it is still not good enough. We have literally thousands of custom templates defined for microsoft word. iWork still mangles the formatting of these templates so I'm stuck with MSOffice. I use iWork when I have the chance but I can't for most of my work documents.

That being said I agree with the posts above, Apple does not need to compete with office or drive it off the Mac. Apple has always been very conservative about entering a market, unlike MS who feels like they must dominate any market that uses software in any way. iWork is a great alternative to MSOffice for many users. Apple will continue to carefully pick their battles.

If Apple really wanted to drive up iWorks market share I could see them releasing it for windows the same way they did for iTunes and then Safari. Apple hasn't been able to write great software for windows though. Google Chrome has turned out to be what Safari for windows should have been. If Apple was going to push OpenOffice.org it would have done so instead of releasing iWork in the first place.
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by JuanGuapo January 7, 2009 9:22 AM PST
danielwsmithee: Totally agree, and I said the exact same thing--make iWork a Windows application, and it will grow. Let's hope that they do so the competition is stronger, and the apps get better.
by kelmon January 7, 2009 9:48 AM PST
Yup, that's my #1 issue with iWork - it's compatibility with MS Office documents is pretty woeful. Here's hoping that iWork 09 does a better job.
by Curmudge January 7, 2009 9:12 AM PST
All I really need is document compatibility. Doesn't matter whose software is running. Seems like 90% of the "features" in MS Office apps are of very little use to me. Bottom line is the need to be able to open a document someone else created. MS's solution was to make the whole world use their app. The better solution is for a document standard that multiple apps read and write. MS keeps messing with their file formats, which keeps the world enslaved to buying the latest MS app.

If iWorks will read and write .doc and .xls files. I'll happily dump Office.
Reply to this comment
by professionaladventurer January 7, 2009 9:16 AM PST
OpenOffice? NeoOffice? Free work and with M$Office documents. I do not buy the 77% of Mac owners "buy" M$Office. I have 8 mac's in my office and a good few dozen others I know who have mac's either don't use M$ office or pirated it. No, I am not some ass-hat college kid. I own 'my" office and company, and I used to be a IT manager for a M$ based office of 150.

iWork is OK but frustrating at times.
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by Vegaman_Dan January 7, 2009 10:15 AM PST
Out of curiousity, why do you use '$' in your abbreviation for Microsoft but you do not do the same for Macs? Shouldn't it also be 'Mac$' to be fair? By using it in such a derogatory manner derails any chance of anyone taking your comments seriously or anything beyond that of a troll.

Be polite, be calm, and be respectful. You'll go much farther.
by MSSlayer January 7, 2009 10:26 AM PST
**** Dan. You are the biggest flamer on CNET.
by samkass January 8, 2009 6:55 AM PST
I bought MS Office for my home Mac when Microsoft made a deal with my company to let employees buy the whole suite for $20. That sounded about right in terms of its value to me on my home computer, so I bought it.
by JuanGuapo January 7, 2009 9:20 AM PST
I have iWork '08 and Office '08--both are equally suitable for word processing and spreadsheets. Having used Keynote since v1.0 and iWork since it's debut in '04 (w/ Pages), I think I know what it can and cannot do better than Microsoft Office. Pages is more like Pagemaker than Word; it is far superior for things like resumes and flyers, but not what I would call a hardcore word processing application. I really like Pages, but it has some maturing to do before you could call it a Word-killer.

In my opinion, Apple has the upper arm with Keynote (over Powerpoint) but only time will tell w/ Pages. I happen to really like Pages but I am going to sit this one (iWork '09) out and wait for the next version to be released. While Apple does not offer upgrade pricing for iWork (not that I'm complaining), neither does Microsoft; iWork also costs a lot less than Office sans Student/Teacher Ed.

I was pretty excited about Numbers--it is a great Excel-like application, but it's not Excel....more like a watered-down, easier to use version. I've yet to see anything that it can do (or do better) than Excel, so it also has some maturing to do.

For anyone that has used Office, they know it's a more nuts-and-bolts type of application. For anyone that has used iWork (from '05 to present), they know that has a few more versions to go through before it can be considered a true Office competitor. The hardest part? Convincing businesses that iWork is a viable alternative...

My suggestion is that Apple should provide upgrade pricing for iWork (which MS doesn't do for Mac versions) so there is a cost incentive to switch, and possibly upgrade. My second suggestion is to make it more ubiquitous--give it away for free to non-profits, governments, etc. Sales alone are not going to de-throne Word/Excel/Powerpoint--you have to drive it to their front door. My third suggestion is to make iWork for Windows--the best way to compete is to keep the consumer happy, and out of the crossfire. I use Macs and PCs, but if iWork were available for both Windows and Mac (as AppleWorks once was), you'd see adoption go up. As long as it is a Mac-only application, it will only stay on the Mac; Office is both a Windows and Mac application, so you can do the math.
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by nicmart January 7, 2009 9:25 AM PST
There is nothing wrong with Mac owners choosing to buy Microsoft Office. Apple has no more reason to be concerned about this than it needs to be concerned with having to buy chips from outside sources like Intel. It has been know for a few hundred years that the division of labor is a tremendous economic advantage.

Read the classic essay, "I, Pencil" here:
http://www.fee.org/pdf/books/I,%20Pencil%202006.pdf
Reply to this comment
by George Gray January 7, 2009 9:29 AM PST
Bah. Who cares? MS (it's MS for all of you who cannot tell a dollar sign from an 'S') OFFICE is still the king of hill and if Apple wants any enterprise business, and I suspect they do, then they still need MS Office. Open Office is OK, but, seriously, the junk still looks like it is from 1993. Isn't it a fruit user's mantra that everything be pretty and 'slick'? Office is not perfect, but then none of it's challenger's are even close.
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by MSSlayer January 7, 2009 10:27 AM PST
Office 2007 is not slick. It is a classic case of crappy UI design.

Office sucks. It is bloated, expensive and is chock full of security issues.
by tm_anon January 7, 2009 7:28 PM PST
Haven't had any problems with OOo. It's solid and does the job. It's even compatible with MS Office (notice the S instead of the $) documents and is even more compatible with other forms of documents than MS Office was at last look. So far, the only areas of OOo not compatible with MS Office I've read about have to do with the same arguments used to downplay iWork. In other words, when making a document look pretty in MS Office, an OOo user can't see what a nice picture you drew. Maybe your job requires you to treat documents like a 3 year old would and draw all over them I really don't know. As for me, I'm sticking with OOo because of the compatibility across all systems. When it comes to actually doing work OOo does it perfectly for me and I didn't have to pay a dime to be able to do it.
by ikramerica--2008 January 7, 2009 9:34 AM PST
Office is required for business use because so many people use it.

For home use, people buy office student edition, which is cheap enough, because they think they need it. After a while, some learn they don't.

But as for the logic of people's actions and knowing anything about what they need? One of the top Mac downloads is still Windows Media Player 9. Sure, it's no longer supported, sure it really doesn't work for a lot of new things, sure even MS tells people to download Flip4Mac instead along with Silverlight for web based MS stuff, but that doesn't stop people from believing they must download WMP, searching for it, and downloading it anyway.

People are sheep. MS counts on that? ;)
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by Groucho6 January 7, 2009 9:49 AM PST
First I use iWork very successfully and while I have Office for Mac, I'm very happy to be able to NOT launch it anymore. Ironically my Office for Mac has more trouble with the new DOCX and XLSX formats from current Office versions than iWork does.

Second, what makes you believe that Microsoft would shoot itself in the foot by discontinuing Office for Mac? For one thing, they make a pile of money selling Office licenses to Mac users, and that only goes up as Mac ownership goes up. Second, any move to discontinue Office for Mac in the face of profitability would be immediately seen for what it is and would raise the antitrust boogeyman once again, something Redmond would probably like to avoid.
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by jahrends January 7, 2009 9:54 AM PST
I like most of apple's products. As far as a replacement for office goes I think that neo office is a much better replacement. Almost every office document I try to open with iWork complains about something in th doc which points to a lack of compatibility. Neo Office presents the doc to me in the same form that office would.
I would like to add that I think apple is spot on with the pricing of iWork where Microsoft was smoking something much stronger than tobacco when they came up with the pricing for Office. I love how people try to say that Apple computers are overpriced... when you add in all the functionality that you get with a mac the mac is much cheaper than a windows PC.
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by c4s2k3 January 7, 2009 9:58 AM PST
This is not a "Mac vs. PC" issue. Much of this discussion would be moot if more people took the extra 30 seconds to export a file to a more agnostic format (like PDF) when sharing documents outside their organization. If you are trying to communicate information to me, and you send me a letter, report, manual, presentation, or even financial data from a spreadsheet, why should I have to have the same authoring tools you have just to consume the information? The focus should be more on the content and substance of what you are trying to communicate to me than the transport mechanism for the information.

If you are co-authoring something then there is an obvious requirement for the same toolset, and it should be identical. As much as I would like to "stick it" to Redmond, my experience has been that using OpenOffice to work on a text document created with Word is unreliable. Lots issues with broken or changed formatting unless you are dealing with the simplest of text documents.

As for the other tools in the MS suite (like mail, contacts, web publishing), I personally can't stand them and I suspect that many others would find alternative applications more attractive as well.
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by tm_anon January 7, 2009 7:39 PM PST
PDF is great for viewing. Unfortunately it's a bit difficult to find a good PDF editor on Windows that won't also cost you lots of cash. As for having to have the exact same toolset, there's a reason MS won't work with the open formats program, they'd lose all their ability to control the corporate world. If you had the ability to send a document without losing formatting to someone using an office suite that also used the open document format, where would be the incentive to continue paying so much? MS is price-fixing its office suite because they know most corporations already use it.
by Goodbye Helicopter January 7, 2009 10:02 AM PST
Seriously, there is nothing to answer to.
MS makes good money off of its macintosh application division.
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by multiplatform January 7, 2009 10:15 AM PST
I used to be an MS Office user, but completely switched over to OpenOffice (now OO 3.0) about 3 years ago. It runs seamlessly across my Windows, Mac, and Unix platforms (I use all 3 between work and home), can read/write both MS Office and international standard OpenDocument files, and has become quite well-featured and stable. I miss virtually *nothing* from MS Office -- especially Office's high cost, when OO is downloadable from OpenOffice.org for free. OpenOffice 3.0 is even (finally) well-integrated into the native Mac OS environment.

...On the other hand, Apple's "Numbers" is extremely slow opening Excel files and loses a lot of formatting. I don't consider Apple's iWork apps to be at all compatible with MS Office files. The other downside to iWork apps is that they are *only* usable on Macs; I have to also use Windows and Unix systems and want (should) be able to run the same applications on all of them -- OpenOffice provides that, in spades.

So it seems that it should be nearly a slam-dunk for Apple to adopt OpenOffice. Macs have enjoyed renewed success (market share) based a lot on greater interoperability with Windows. E.g. using Intel processors, I can now buy a Mac without "separation anxiety" from Windows -- I can now buy a Mac and still run Windows applications on it directly for a while while I "wean myself" from those applications, using CrossOver and/or a VM product (VirtualBox, VMware, or Parallels). So greater compatibility of Apple productivity software (spreadsheet, word processor, presentation, etc) with MS Office files would only serve to lower the Windows-to-MacOS migration barrier even further.

(don't get me wrong, I'm not suggesting that Apple lower its applications to the crude level of MS Office apps, esp Word <shudder>, but Apple would benefit greatly from being able to read/write MS Office files)

OpenOffice looks like a *much* better option than Google-style online applications and I would certainly encourage Apple to invest in it!
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by Perry_Clease January 7, 2009 10:25 AM PST
Matt said, "I love my Mac, but I couldn't use it without Office. "

Matt for what do you use Office
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by asiafish January 7, 2009 5:28 PM PST
I use Office on my Mac and MUST continue to do so because I send and receive legal pleadings, in MS Word, and any other application, even OO3, will break the special formatting.

Sorry, I am not willing to waste my time or try to convince others to waste theirs whenever I need to send or share a document. That is the same reason why I still own and run WordPerfect (on a Parallels VM in my Mac), as some courts still use it.

Other than compatibility, I actually like MS Office. I have an Exchange server for my calendar and email and love the ability to maintain identical email and calendar across machines and across platforms. Even if I didn't use PCs on occasion (I game), and didn't need to share documents, I would still buy Office for Mac because after over 20 years of using it, it is familiar, natural and just plain efficient for me to do so.
by dannyo152 January 7, 2009 10:33 AM PST
I think it's probably a good thing that Microsoft has two viable products that Mac owner may consider (Office and Windows) and do purchase. The margins for those products must be outstanding. I don't know if iWork is profitable for Apple. Previous versions were not business ready. There is the file format issue which requires the presence of mind to save as before distributing. One wonders why Project/Plan/Access are also not ported by Microsoft. I think they would rapidly ascend to the top of Mac software market share and bring Microsoft profits.

As to Apple, their software business begins when someone buys a Mac. Advertising which mentions Vista and XP is there because the operating system is the key differentiator for the system. I take late 90s Jobs at face value when he explained that he had to change the attitude of those in the company who thought "Apple loses when Microsoft wins." Put all that together and I think there is a competitive spirit at the two companies, but it isn't as cutthroat as the tech blogs suggest, especially as Mac vs. Windows items draw the page hits. Office on a Mac == profit/profit.
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About The Open Road

Matt Asay brings a decade of in-the-trenches open-source business and legal experience to the Open Road, with an emphasis on emerging open-source business strategies and opportunities. Matt is general manager of the Americas division and vice president of business development at Alfresco, a company that develops open-source software for content management. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

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