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October 28, 2008 2:58 PM PDT

Finally getting with the program: Microsoft to offer Office online

by Rafe Needleman

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Microsoft announced at the Professional Developers Conference Tuesday that it is finally putting Office apps Word, Excel, and PowerPoint online, but not killing the traditional versions. It's about time Microsoft got with the program here. Online apps offer several advantages over software apps, which Google has been leveraging in its Google Docs suite. Primarily, documents that are created in an online app can be opened up for sharing and collaboration very simply.

If Microsoft Office were not a nearly ubiquitous piece of software, chances are the company would have added an online version earlier, due to another bit benefit of the platform: Your user base grows virally. All it takes is for a user to share a document and the app comes along with it, for free. With paid and installed software, obviously, there's a big barrier to adoption.

All is not peaches and cream with online apps, though. As a rule, they have less robust feature sets and interfaces than installable apps. Although many see that as a benefit, it's an easy thing to market against. People new to a word processor may adopt and stick with a product like Google Docs, but anyone with a few years of usage history in Office is going to find it harder to make the move.

Even among online suite users, there is often a split in usage behavior: People will use an app like Word to compose most or some of their documents, and then import them into Google Docs if they need to share them. Or they'll use Google Docs for some types of composing (documents destined for the Web) but not others (mail merge letters or documents being created for print). And this is where Microsoft has the upper hand. If (big if) the company manages to build online versions of its Office apps that complement its installed apps, it can obviate the problems with the split-use model, gracefully letting users float between versions of the apps as they want or need. In a demo at the PDC, Microsoft showed, among other things, two users working on a single OneNote 14 notebook. One was on a desktop app, the other on a browser. The changes on one were syncing over to the other. This is how apps should work: users should not care if they are online or off.

Microsoft, though, does not have a track record of building strong online/offline apps. The Web version of Outlook, Outlook Web Access, is a pale and poor cousin of the desktop app. And Microsoft has already said that the new online apps will not have all the features of the desktop apps.

As far as pricing, Microsoft will be competing with Google's free Google Docs as well as Zoho's suite. Microsoft cannot afford to give away its core productivity app completely. The company has not revealed its entire pricing strategy, although representatives note that the current Office Live has both free, ad-supported options as well as subscription services.

Although Microsoft will be late to the game in offering an online app suite when Office Online beta shows up in 2009, I do not believe it is too late. Google and Zoho have softened up the market for online apps but there are still plenty of people locked into Microsoft Office. This new direction brings Microsoft into an emerging market, which will then see a very big uptick in competition. This is going to be very cool to watch, and beneficial for users.

Rafe Needleman writes about start-ups, new technologies, and Web 2.0 products, as editor of CNET's Webware. E-mail Rafe.
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by emmanuelhuna October 28, 2008 3:22 PM PDT
One thing you haven't mentioned is that both the desktop and online versions of Office will be "connected" through Microsoft Azure and Live services.

What this means is that for example, my wife could update a document on her desktop at home and I'll see the changes a few seconds later on my online version of the document. Alternatively, I could make changes on the online version and she would see my changes on her desktop a few seconds later.

I know Google Docs has this feature - I've used it. But their Ajax implementation on the browser is slow and unreliable (it's not Google's fault, it's just that you can do a lot less on the browser vs the desktop).

At the PDC (www.microsoftpdc.com), during the keynote event this morning, there were many demos of Word and Excel sharing data across both desktop and online versions.

With Microsoft Azure and Live Mesh this is going to become a "standard" feature for developers using Microsoft technologies. Don't expect this from your PHP/Linux/Mac developers - we Microsoft developers are using power drills, while they are still using screwdrivers.

Emmanuel Huna
www.ehuna.org
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by jumpjetta October 29, 2008 8:33 AM PDT
You sound like you've swallowed the Kool-Aid.
by Dalkorian October 29, 2008 9:18 AM PDT
Swallowed, he's gulped down a gallon of the stuff! Imagine how easy it will become to propagate an Office virus when the program is online. M$ doesn't exactly have a security record worth bragging about.
by Renegade Knight October 29, 2008 11:38 AM PDT
I find email works quite well for sending documents back and forth. The most annoying thing about anyones documents is the lock on the data. I need to be able to open the same document in Word, Google. Openoffice, Word Pro, Word Perfect and everthing else.

The nice thing about Linux and their screwdrivers is that they do embrace the idea of us owning our own data. Your power drill takes a propriatary power source. Anybody can use a screwdriver. Amazing how some things just work.
by BDragon1209 October 29, 2008 11:48 AM PDT
Am I the only person who noticed he referred to himself as a "Microsoft developer". All you guys are arguing with a M$ FLUNKIE. I myself have been in the computer business (Networking, tech, programmer, etc). I have tried it all. I started in the days before Windows, when DOS and Unix ruled. I was there when Windows came out, and thought to myself, "That GUI scheme bears a striking resemblance to the original Macintosh GUI." They proved it from day 1, and they still hold true to this day. You won't get an original idea, and only marginally intelligent argument, from a "developer" who has never had the brains to try anything that didn't hold his hand and change his diaper for him.
by Penguinisto October 28, 2008 4:03 PM PDT
Let me guess: no PDF export, you're stuck with .docx, and there's a big fat EULA in there that demands ownership of your documents, right?

/P
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by emmanuelhuna October 28, 2008 4:32 PM PDT
Hey Penguin idiot, you can "Save as" PDF today with the current version of Office or Word 2007 - here's the free plug-in from Microsoft:

2007 Microsoft Office Add-in: Microsoft Save as PDF
http://www.microsoft.com/downloads/details.aspx?FamilyId=F1FC413C-6D89-4F15-991B-63B07BA5F2E5&displaylang=en

This was originally a feature that was included in the earlier version of Word 2007 but there was some legal reason that forced Microsoft to make it an add-in (some pending lawsuit from Adobe).

It's ok to be a Linux fanatic, just don't be a moron and do some research before spewing anti-Windows hate.
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by Dalkorian October 29, 2008 9:19 AM PDT
Correction: he's not "spewing anti-Windows hate", he's spewing winblows hate. Truthfully, winblows deserves it.
by Renegade Knight October 29, 2008 11:41 AM PDT
Hey EI. How nice you can save as a PDF. If you can edit PDF as well maybe we are getting somewhere. Is that the standard for interoperable data files? I don't think it is. Especially given the lawsuite.

Try again.
by someguy999 October 28, 2008 9:59 PM PDT
The author complains about OWA? Are you kidding me? Its the best enterprise web-based mail client out there. Some one is seriously smoking some illicit substances if they think that the online version will be as good as the offline version. Of course it won't, but that's ok... I don't need it to be. I need a solid Office Suite that compliments the offline version... it looks like it might just happen.

Why its now version the original time when it should have been (anyone remember NetDocs?)... who knows... but whatever someone finally woke up.
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by technogeist2k6 October 29, 2008 4:12 AM PDT
Will data travel over SSL? Coz I see a whole heap of privacy and identity theft issues if it isn't.
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by Penguinisto October 29, 2008 7:14 AM PDT
@emmanuelhuna: That's nice, but we're talking ab't MSFT's online version, not an intentionally obscured plugin for their $400 (retail) computer version.

Also, given the plethora of .doc -> PDF converters that have been out there since 2003 or so? Your argument is weak.

Maybe you should take your own advice, and do some research yourself before letting your knee jerk like that? ;)
Reply to this comment
by damayeremi October 29, 2008 8:16 AM PDT
Just a quick comment to tell you that you can use the newly released OpenOffice.org 3.0 office suite online without any installation for free at:
<a href="http://www.ulteo.com/home/ooo">http://www.ulteo.com/home/ooo</a>

It includes PDF export and all the OpenOffice.org features, plus real time desktop sharing capabilities.
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by emmanuelhuna October 29, 2008 9:26 AM PDT
@penguinhead My knee didn't jerk - I simply addressed a false allegation you made (that Microsoft Office software does not export to PDF). We Windows users have a right to respond to attacks from Mac and Linux users. It would be nice if we didn't have to respond to such hate, but it's time we start reacting to the amazing anti-Windows bias in the press and among penguin fanatics.
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by Renegade Knight October 29, 2008 11:48 AM PDT
Well now. It appears that it doens't export to PDF. You have to go out and get an add in to do that. My car doesn't do 0 to 60 in 5 seconds. However if I go get some race parts and install them, then it can. That's no argument for what a race car mine is.
by Penguinisto October 29, 2008 2:03 PM PDT
Are you familiar with the article at all? Did you read it? I'll give you a hint: It disucsses Office Live (as in, MS Office on the Internet), not MS Office the local applications suite.

Get a clue already, will you?
by mtig October 29, 2008 9:41 AM PDT
Downsides to online apps:
1) prior interfaces with other software WILL NOT work as predicted (i.e. Calyx Point)
2) they're slow (even slower than the bloated desktop versions)
3) fewer features (as mentioned in the article)
4) forever changing interfaces (i.e., ongoing learning curve)
5) security issues (minor risk but addressing it will slow app and increase learning curve)

There are obvious advantages that have been mentioned. I believe there's a place for online apps but don't ignore the desktop stuff in the process.

As for Linux stuff, we still live in a MS world. Open office is at best a tinker toy to a power user. It just doesn't measure up. And before you start spouting market acceptance, remember it has been competing on the basis of price ($0 versus $700) for 10+ years. If it was really any good, it would OWN the market by now.

XP rivals any Linux OS for stability. As for compatibility and number of useful apps available, Linux totally sucks in comparison. In terms of cost, the OS is free because it costs so much to actually make it work. I've tried both directions and Windows is cheaper.
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by Penguinisto October 29, 2008 2:06 PM PDT
Corrections:

* OpenOffice was a project named StarOffice. Read this: http://en.wikipedia.org/wiki/Star_Office
* define "power user".
* You conveniently neglect to mention that for the majority of the 8 years that OOo/StarOffice existed, MSFT had the file format for *.doc (and *.xls, and etc) specifically hidden and obscured.

Your last statement was an awesome laugh... XP has nowhere near the stability of anything save against its precdecessors.
by Bronzit October 29, 2008 10:54 AM PDT
This is nothing more than a return to 1960's-70's Client/Server programming & smacks of proprietary software use, AGAIN! Welcome back to the IBM Era of the 1970's! This will further push unknowledgeable Users away from a product using Microsoft Windoz. Wait & see!!!

Apple already has a similar feature for file sharing between an owner's desktops & portables available with its Me.com subscriptions which has similar limitations.
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by n25philly October 29, 2008 11:42 AM PDT
I think this is a bad idea. To much of a chance it will become pure garbage like google docs
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by princessc98 November 4, 2008 1:41 PM PST
Sounds like Microsost is trying to do what a small company called eXpresso is already doing. eXpresso allows users to share and collaborate on files in real time. They have not reinvented applications they actually use Microsoft excel. They also offer a plug in which allows users to edit in their desktop environment, and once they are done the changes are pushed to the online environment. eXpresso has only been around for about a year, but I hear they are making progress. The price to use it is very cheap compared to what Microsoft is going to charge. I dont know about you, but with the economy the way it is, every penny counts. Why pay more for something else when you can get it cheaper and it works just as good if not better! Oh ya, and its available now, not in the near future.
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by firefoxluva95 November 6, 2008 1:21 PM PST
i noticed that many people have brought up Microsoft's track record in security.
The problem is the number of attacks against Microsoft machines are greater because more people and more companies use them. If Mac or Linux was the leading OS rather than Windows, I wouldn't be surprised that the same people will be complaining about the Apple or the Linux platform having a "bad" track record. You cannot compare the track records because that would drag in a second variable, the number of attacks. It would be an unfair comparison.

See here's the Catch 22 in the tech industry. If you're too successful, people complain about you because it apparently is your fault that everybody uses your product and that lures attackers. If you're not successful enough, people also complain about you saying it's your fault that the product is subpar.

Also, Google docs isn't garbage, it's saved me many times when I'm working on stuff at school and have to take it home. I forgot my flash drive, oh no. What if my school blocks email? Double oh no. But what if I upload it to google docs? Bingo!
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by mtig November 10, 2008 1:02 PM PST
@Penguin, so MS had the .doc as proprietary? Why should that hinder a product that is FREE? If it's what it's craced up to be, free should sell itself. It just isn't worth bothering with for anyone that needs to integrate their office software with other processes. And if I go to Linux, 2/3rds of my apps go away. I get to write them from scratch. That should only cost me around $2 million - quite literally. Or are you volunteering to write all my stuff "open source" for free? I have used many of the open source stuff. Some of it's very good for the price but when you need something really serious, you have to pay for it. The last I checked, even genius programmers had to eat something besides virtual food.
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