Microsoft said Monday that it's cutting by a third the subscription prices for the hosted versions of Exchange, Sharepoint, and Office Communications Server.
The software maker plans to cut the monthly per-user cost of licensing all three products from $15 to $10, while the cost of licensing individual products is also dropping by as much as 50 percent. The move comes as Microsoft faces continued pressure from rivals, including Google.
Capossela
(Credit: Microsoft)Last week, the city of Los Angeles voted to go ahead with a deal to shift many employees to Google Apps from Microsoft Office.
In an interview, Microsoft Vice President Chris Capossela said the move has less to do with competitive pressure than that "it's the price that customers are really excited to buy our suite at."
,p> "We're pretty excited about the price and not so much focused on free services or the price Google or others might charge," Capossela said.In addition to the price drop, Microsoft is also touting several new customers and announced its plan to bring the year-old Microsoft Online services to more than a dozen new countries.
The company is announcing its commercial launch in Singapore, as well as trials in Brazil, Chile, Colombia, Czech Republic, Greece, Hong Kong, Hungary, Israel, Malaysia, Mexico, Puerto Rico, Poland, Romania, and Taiwan. Microsoft also expects to have commercial availability in India later this year.
Among the new customers are McDonalds, Aon, Lions Gate Entertainment, and Rexel Group. They join existing customers, such as Blockbuster, Coca-Cola and Autodesk as those paying Microsoft to run hosted versions of its products. Microsoft formally launched Microsoft Online at a San Francisco event a year ago.
Next week, Microsoft will also formally launch Exchange 2010 at its TechEd Berlin developer event. Microsoft said last month that it had finalized the product. Traditionally, Microsoft has developed products first as a server and only later, if at all, customized them to run in hosted form.
Exchange 2010, though, was designed first as an online service and then crafted into a product that businesses can run on their own servers.
Those wanting to get their hands on the Web-based versions of Word, Excel, and PowerPoint will have to wait a little bit longer.
Business Division President Stephen Elop said in an October interview that a technology preview of the browser-based applications would come this year, followed by a beta in 2009. However, it turns out Microsoft is using a rather tortured interpretation of the term "technology preview."
It's currently being used by fewer than 1,000 Microsoft employees, as part of a test that started last month and is slated to go through February. Consumers won't be able to try a test version of the products until sometime next year. Microsoft isn't saying when, but I'd say you'll have plenty of time to try the Windows 7 beta before you have to worry about testing the Office Web apps.
Ultimately, Microsoft is planning the release of the Office Web Applications in conjunction with the next wave of Office product, code-named Office 14. Microsoft has not offered a release date for the desktop version of Office 14.
Microsoft is planning two ways of offering the browser-based Office programs--one for consumers and the other for businesses looking to offer Office Web apps to their workers. Consumers will be able to use them through Office Live. The company currently has a free product called Office Live Workspace that lets users view and share--but not edit--Office documents.
Meanwhile, rivals like Google and Zoho already offer editing abilities. Microsoft is staking its claim on being able to offer better compatibility and document fidelity with its products. The company has recently had some big customers consider abandoning Office and move to Google Apps, but has wooed some of them back by sharing their plan for the Office Web apps.
Procter & Gamble, for example, took a long look at moving to Google Apps, but decided to stick with Microsoft after some high-powered lobbying from Redmond. Elop said that Microsoft's pitch included details on its plans for the Web-based versions of the Office programs.
"This was part of the conversation, absolutely," Elop said. "We have been sharing with customers under varying circumstances to a greater or lesser extent."
Microsoft has not definitively said how it will price the products, but it has noted that Office Live has both subscription and free products, suggesting it may have both free and paid versions of the Web apps.
For businesses, the Office Web Applications will be offered as part of Microsoft's SharePoint server. In either case, the Office Web Apps will only work when a computer is connected to the Internet.
Energizer CIO Randy Benz told me last month that he expects the Office Web Applications to open doors for him. Benz said that a lower-cost Web-only option probably won't lower the overall cost of Office for his company, but it should mean that a new class of workers gets access to Office.
"Every PC has the full (Office) suite," Benz said. "But we limit the number of PCs."
Microsoft Vice President Chris Capossela said he sees things similarly. Right now there about 500 million users of Office, he said, but a lot of those copies haven't been paid for.
"We see a tremendous opportunity to sell more," he said.
In an interview Monday, Microsoft senior vice president Chris Capossela said that, at least initially, the browser based versions of Excel, Word and PowerPoint won't have an offline mode.
"In the first generation we are certainly looking at having them be connected," he said. "For offline usage of course the Office suite is incredibly powerful." (See YouTube video below for his full comments on the matter. Apologies in advance for the bad sound quality.)
Google has been working to add an offline ability to Google Docs, while Zoho was even earlier to add the ability to work within a browser while offline.
Capossela's comments came following the launch of Microsoft Online, the company's hosted versions of Exchange and Sharepoint.
Microsoft confirmed at last month's Professional Developer Conference in Los Angeles that it was bringing to market browser-based versions of its Office applications. The company has said that a technology preview version should be available still this year.
LOS ANGELES--After years of questioning the value of Net-based productivity applications, Microsoft confirmed Tuesday that it will offer new versions of Word, Excel, and PowerPoint that can run from within a standard Web browser.
As first reported by CNET News last week, Microsoft will use its Professional Developer Conference here to show off browser-based versions of its Office programs.
In an interview, Microsoft Business Division President Stephen Elop said that the browser-based editing capabilities are being developed in conjunction with the next version of Office, known as Office 14. Microsoft won't say when that version will arrive, but Elop said that a technology preview of the browser-based products will come later this year and that a beta version will be released in 2009.
Microsoft will offer browser-based Word, Excel, and PowerPoint in two ways. For consumers, they will be offered via Microsoft's Office Live Web site, while businesses will be able to offer browser-based Office capabilities through Microsoft's SharePoint Server product.
The company has been pushed into this arena by Google, which has been offering its free Google Apps programs for some time. In competing with Google, Microsoft is touting the ability to use Microsoft's familiar user interface, as well as the fact that all of the document's characteristics are preserved.
"If you go into some competitive products right now and take a Word document in and then spit it out afterword, it's unrecognizable," Elop said. "You lose a lot of fidelity."
Elop said that not all of the editing capabilities of the desktop products are in the browser versions. "The editing we are characterizing as lightweight editing," he said.
Although Google Apps has seen most of its popularity among consumers, it has started to attract attention from corporate customers. Google Apps got a strong look from Procter & Gamble, which only decided to stick with Office after a strong push from Microsoft. Part of that pitch, Elop said, included Microsoft offering details on its plans for the Web-based versions of the Office programs.
"This was part of the conversation, absolutely," Elop said. "We have been sharing with customers under varying circumstances to a greater or lesser extent."
Although he didn't name names, Elop said Microsoft has found itself in a competitive situation with Google in other business accounts as well.
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