I Really Hope Microsoft Has More Than This

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1. Sam
   

   March 2nd, 2008 at 10:52 pm

   “Microsoft’s $16 million Office business at risk.”
   Did you mean $16 billion?

2. dan
   

   March 2nd, 2008 at 10:55 pm

   its 16 BILLION.

3. Jan
   

   March 2nd, 2008 at 11:01 pm

   16 million is how much Microsoft gives its pro-monopoly lobbyists in Washington. The Office business is closer to 16 billion.

4. Fabian Schonholz
   

   March 2nd, 2008 at 11:18 pm

   I never ever liked MS (to the point that I have never owned a workstation with Windows, never really used, never programmed to and the only time I had to I quit a really good job because there was a change to use MS products). However, I think that they are necessary in order to preserve a competitive landscape. And if this is what they have up their sleeves, then they are in trouble.

   Also, MS Office is not a bad product, however, I like iWorks better.

5. JosefVirek
   

   March 2nd, 2008 at 11:38 pm

   Surely they’re not going to do anything to hurt their current business model. MS Office will still be a desktop application but more and more functionalities and services will be accessible via the web as add-on features.

6. Mircea
   

   March 3rd, 2008 at 12:16 am

   I don’t see many businesses (especially big ones) switching to Google Apps and Docs anytime soon…partly because Google still has lots of work to do at their applications, partly because businesses are so slow moving forward (especially big ones)…

   I built an application for my company almost entirely in AJAX (and I know Google uses AJAX for its Office applications)…boy, I was close to start all over again because after almost finishing I started testing on other computers outside of my department (we had pretty decent computers)…they have quite old computers which had some hard time processing all that AJAX stuff (you know Javascript eat lots of memory)…yeah, my fault I didn’t asked a review of those computers.

   And I’m wondering how hard would be for such computers to work with Google office applications…they can handle MS Office 2003 pretty well (upgrading to 2007 who knows when it will be done - only now we upgrading to SQL server 2005)….until they’ll be replaced by more powerful ones.

   And I believe this situation is present in many other companies…

7. Prasid
   

   March 3rd, 2008 at 12:47 am

   google is still having little or no noticable impact on Office sales. and until they perfect Google Gears, and until consumers’ perception about doing word processing in a browser changes. Right now we’re all-too-familiar with our blog entries being eaten or our online forms lost when we loose our connections. I think the growth of Ajax, Adobe Air, and Silverlight/WPF will begin to erode that reluctance and build consumers’ trust in using a browser, but that this will limit Google Apps adoption outside the early adopter and student spaces. Early adopters will feel comfortable with it. Students will jump at a free alternative. But my dad will never trust Google Apps. More on my blog: http://www.dailydoseofpras.com

8. Darren Stuart
   

   March 3rd, 2008 at 2:07 am

   Someone needs to get fired at MS if this is the big news. They are draggin their feet far to much on this.

   They don’t even need to threaten their office line up with web based versions. All they need to do is cut out the advanced stuff.

9. Sri
   

   March 3rd, 2008 at 2:38 am

   If this is the BIG announcement they would have done that at MIX (not that this is very related to MIX, but it still is about online services). So, i think something else, which is even bigger, is going to be announced at MIX’08.

   …Keep’s his fingers crossed…

10. wl
    

    March 3rd, 2008 at 3:25 am

    If you are the VP that runs Office, the question you have to ask yourself, is how can Microsoft respond to the disruption of the online office suites without jeopardizing its existing Office revenue? The easy answer would be to do a “Microsoft Zoho”, but then it has to compete with almost free Google Docs, and the margin for office productivity will go to zero in the long run. Not a good solution.

    So, let’s see, alot of that Office revenue comes from enterprise IT department. That’s the revenue that MS has to protect. And what IT wants is not necessarily a web based browser solution; afterall IT doesn’t want their confidential company data hosted on the public internet, even behind Google’s auth. What IT really want, MS would say, is a solution where the desktop PC doesn’t need to install software, so to avoid viral infection, frequent security fixes, etc etc, and thus cost IT a headache and a fortne to manage.

    The VP says that if Microsoft can provide a solution to these IT problem, then enterprises won’t defect to the Google Docs or Zoho of the world for the manageability reasons. They may do it for cost reasons, but that won’t be the an exodus.

    And guess what, Microsoft has already gone down this path via their acquisition of Softricity:

    http://www.microsoft.com/press.....ityPR.mspx

    Downloadable virtual Office installs, solves all the manageability problems that IT really hates. The surprise announcement, if there is one, is that they are done with the integration with Softricity technology and is ready to offer it to enterprises for trial. I have no idea whether that is the rumored response, but it’s been two years and so it’s probably time anyway.

11. Naren
    

    March 3rd, 2008 at 3:42 am

    Desktop Applications is the bread and butter for MS and I don’t think they are going to make it free(web based).

12. Wayne Smallman
    

    March 3rd, 2008 at 4:23 am

    The thing is, Google hardly ever take the chance to hurt Microsoft as badly as they could. And I think Microsoft know this.

    Microsoft like the taste of blood, while Google have yet to sink their teeth into anyone…

13. srini kumar
    

    March 3rd, 2008 at 4:47 am

    Um.

    MS Office has jumped the shark.

    You should see http://www.MetaNotes.com if you think MS can ever catch up to the Web 2.0 revolution, brothers and sisters.

    -srini kumar
    ceo
    metanotes.com

14. Martin_Australia
    

    March 3rd, 2008 at 5:27 am

    Michael Harrington - what planet are you living on?

    The latest NPD report of Open Source Office Apps and Google Apps sees only 0.5% of US consumers switching to office apps on the web and against this Microsoft has posted record growth in Office sales. So where the hell do you get the position “…Microsoft is giving more time for Google to eat their lunch.”? The only people eating anyone’s lunch is Microsoft eating Google’s.

    Against industry trends and the constant parroting of naysayers like people on this post, Microsoft continues to grow and grow. Microsoft just recently posted 15% growth in Net revenue up from USD$44b to USD$51b and growth of 12% in Net income up from USD$12.6b to USD$14.1b. Apple dissappointed and so did Google but Microsoft beat all analyst expectations and the ignorant naysayers.

    Let’s see - Google is a one trick company - they have monetised search, big deal nothing else. Do you seriously think enterprises and miz size business are going to use Google Apps? Have you actually read their terms of use? What is their innovation? Apple - Mac OS only accounts for 3% of computers desktop operating systems and Linux 1% but you wouldn’t think so from all the anti Microsoft comments from people living in fairy land. Guess who propped up Apple when it was on the verge of going down the gurgler? Microsoft with USD$200m. Microsoft is the only constant in the business and they continue to grow! Does this sound like a company which does’nt meet it’s customers expectations and business and industry needs and is “going down”?

    Microsoft continues to innovate, invest, acquire and deliver wanted products and technologies. If it hasn’t how do you explain their continued growth?

    Linux was meant to be the death of Microsoft = Global Linux market share has been going backwards. FACTS.

    Microsoft has come from nowhere and is now considered one of the top 3 players in Business Intelligence - Gartner report. They are now also considered a leader in Unified Communications as well. Cnet is already saying the 2nd generation of Zune is a legitimate rival if not better than iPod and Xbox already proved you can come from behind in a mature industry just like Microsoft has done in Business Intelligence, Unified Comms and many others areas.

    Microsoft will invest USD$6.5b on R&D this year and it continues to innovate and make good and successful acquisitions. Examples - aQuantive, Danger (Mobile) and many many others. Look at innovation such as Surface, PhotoSynth, .NET, Silverlight, Software plus Services for Exchange, Office, Unified Comms and many others and wait to see what’s just around the corner.

    More than 50m mobile phones with Windows Mobile are being shipped per year with growth of more than 300% per annum - how many iPhones have been sold!? No comparison.

    As usual the ignorant clueless naysayers simply say “you must work for Microsoft” because I am defending them. I am defending them as I happily invested in them many years ago and my company is very satisfied with their products, technology and servicing. As a consumer I have had no issues whatsoever with Windows Vista on my home PC except for the lack of drivers from Creative for my soundcard - not Microsoft’s problem.

    Your opinions and personal experiences are NOT representative of the global consumer base or global industries so stop trying to make out that it is. People like you make out Google to be a serious threat to Microsoft!! If Google are eating Microsoft market share then how did Microsoft signficantly grow their Information Worker business? As I outlined above 0.5% of US consumers have switched from desktop productivity suites to web based suites but as usual the vocal minority are in fairy land thinking their opinions and way of life represent the majority.

    Before you continue to make uniformed and ignorant comments - get some facts and stop simply swallowing the Google press releases without stepping back and taking an unbiased view through the lense of facts and figures!

15. Amusis
    

    March 3rd, 2008 at 5:40 am

    Martin, you don’t get it.

    All software will eventually be delibvered over the web. The question is not if, it is when. It is cheaper, more convenient. Anything that saves money, time and hassle is a guaranteed winner.

    Once you try online banking, you never go back to queing at the branch or mailing paper cheques.

    What Arrington means by giving Google more time to eat MS’s lunch is that MS’s baffling delay in offering Office as a web-based subscription service merely gives Google more time to improve Google Docs and Spreadsheets (which we all know is far inferior to Office, but is improving steadily) and to gain market share.

    When MS finally gets over its cold feet, it will be too late. Google’s suite would have become enterprise-class in its quality, security and reliability, millions of customers would have switched (for the lower cost and convenience), and MS will find itself once again trying to play catch-up in a market it should have dominated from day one.

16. Todd
    

    March 3rd, 2008 at 6:38 am

    Hate to troll, but why is anyone surprised? Microsoft will never, ever, EVER be part of the participation culture - their business model and dividend paying stock forbid it.

    http://port25.technet.com <– Anyone at all ever see byte one come out of this?

17. Dave
    

    March 3rd, 2008 at 7:24 am

    What a hell and what a fake buzz!

    what is gone wrong here…it’s a plus and third part service to Great Office platform! that make more facilities to collaborate based on MS Office for million million users…and where is the place to buzz tiny and fun services such as google apps here?!!!
    r u a apple or google official or u r just a sucker for the greatest fashion-Start, steve jobs!!!

    just use ur weak mind and think for less than 2min : if MS didn’t spread the technology what and where r u and google and I !!!

18. JMW
    

    March 3rd, 2008 at 7:32 am

    SharePoint 3 comes “free” with Server 2003/2008. If MS gives away SharePoint 3 hosting, this will have a significant positive effect for MS and stimulate Office sales. I come from the perspective of both an avid SharePoint AND GoogleApps user: I pick an choose and change depending on what makes my life better.

    If you have ever built SharePoint sites, you know how the feature-set totally blows away any competition (Google Sites included). Plus, SharePoint gives the non-programmer (like me) drag-n-drop workflows.

    If MS gives me free SharePoint, I’ll probably switch over to Office, and keep just my custom GMail accounts for Google Apps.

19. Bob Warfield
    

    March 3rd, 2008 at 8:38 am

    I think there’s a good chance that part of this is just due to concerns over investor reaction. The stock has been shell shocked by the Yahoo debacle. Investors are reportedly meeting with Ballmer looking for assurances. And, as we all know, SaaS carries profitability impacts.

    Could be they want to roll this out in a very measured way.

    More on my blog:

    http://smoothspan.wordpress.co.....ppointing/

20. dave
    

    March 3rd, 2008 at 8:52 am

    pardon me, but i prefer full features of an installed office suite. i have real work to get done most of the time and need perfect utility with full feature sets - not a group of 20 who tried to rebuild 15 years of MS development work in 18 months in a browser…

21. Matt
    

    March 3rd, 2008 at 8:57 am

    Online office-type products are still several generations away from ever being able to compete with MS Office. And by compete….I mean getting more than 5% of the enterprise market share.

    Sure, writing a simple letter or memo on Google Docs is easy enough, but try writing a long and complicated technical document online or a complicated spreadsheet and you’ll quickly realize the limitations inherent with working online. Microsoft simply has to stay a couple generations ahead of online applications and they won’t have any problem keeping Microsoft Office as stand alone application.

    There are too many productivity disadvantages to working online that I don’t see there ever being a need for MS Office to become an online application. Remember…. “It’s not IF we will all want to order our groceries online, it’s a matter of when.” hahaha. Not everything needs to be done online to be successful.

22. Mark Ashton
    

    March 3rd, 2008 at 10:37 am

    Amisus - all software will be DELIVERED through the browser? Let me parse your words for you. There will be a day when all software is delivered - meaning downloaded - to the end device over a network. But to suggest that all software EXPERIENCES will be through the Web browser is patently dumb. My guess is you’re too young to remember the “good old days” of mainframes and mini-computers where users accessed data and applications through emulators from dumb-terminals. Well, the Web browser is the modern equivalent. Sure, it’s somewhat improved. Bandwidth is getting better and better. More and more technology is being crammed into Web browsers in an attempt to replicate the superior functionality of software that runs locally. But the quality of Web browser-based software will never reach what you can get on a PC, Mac or smart phone running native software. Heck, even Google recognizes this. Google earth is a client application. Even the purest of pure-play SaaS providers - Salesforce.com - recognizes that people want to take advantage of locally running software.

    This isn’t to say that most or all software won’t be “web-aware.” That’s a no-brainer. The best approach is to have local software consuming Web services or connecting out to other applications over the Web.

    Why is everyone so enamoured with browser-apps? Because they’re so easy. No installation hassles, no hassles updating them, they’re accessible from anywhere, your data is accessible from anywhere. PC or Mac apps, in contrast, are a pain in the butt to install and update, aren’t accessible from anywhere and data stored on the local device isn’t available anywhere.

    Well, guess what? Those problems are addressable. Improvements in data synchronization, the same increasing bandwith that makes Web apps so attractive today, and cheap (approaching free) storage makes it more and more possible to replicate data everywhere - on my laptop, on my Mac at home, on my iPhone. If I update a file in one place it gets replicated everywhere else. The problems with installing and updating applications will get fixed. Heck, you can see that today when you install applications like the New York Times Reader (http://firstlook.nytimes.com/?category_name=times%20reader) which in a simple installation and the data (aka content) gets updated automatically behind the scenes. That is just the beginning of what we’ll see down the road.

    If you want to live in a world where you’re limited to crappy browser applications then more power to you. I’d rather take advantage of new-fangled technologies like, say, hardware acceleration, to get a better experience.

23. anon
    

    March 3rd, 2008 at 10:59 am

    MSFT needs YHOO to launch Office online.

24. gman
    

    March 3rd, 2008 at 11:55 am

    RDS Backup systems is the most secure backup of it kind they are going to do big things as mor companies look for a quality product to secure their information.
    http://rdsbackup.com/

25. Shams
    

    March 3rd, 2008 at 1:03 pm

    @23, you must be joking .

26. Tim
    

    March 3rd, 2008 at 10:22 pm

    Our company has been paying to use Basecamp as a service for collaborative projects with customers and partners for several months - and we are pretty pleased with it. But we test drove Sharepoint last month and were blown away by the advanced, yet straightforward feature set, plus the clean interface. So much so that we were on our way to switching and paying monthly for a hosted version of Sharepoint when we saw this announcement.

    We are not Microsoft lemmings by any stretch. There is just something very appealing about using an application that seems like it was built for real business. Sharepoint certainly has more of this feel and feature set from our perspective.

    There is a reason Sharepoint is the most successful server technology in Microsoft’s entire history - and now they are opening it up in a hosted version that removes the necessary hurdle of infrastructure and IT, to the vast ocean of SMBs, the bulk of the US economy, at an irresistable price. And that’s not a big deal?

    BTW…funny how this stuff migrates, our local municipality has also been paying for a hosted Basecamp site (at my suggestion) to collaborate between the city, economic development organization, and chamber of commerce. I highly anticipate we will be making the switch to hosted Sharepoint (again at my suggestion), with its far superior permissioning and extensive site templates within the month.

    I’ve seen numbers ranging from 4-5 million to nearly 20 million SMBs in the US alone. It is just my sense that while both Google and Microsoft certainly touch these companies and their employees (80% of working Americans?), it is Microsoft that touches them in a more meaningful business way across the board.

    Online word processing and spreadsheet apps? I’d say the jury is out on that, and MSFT owns the only proven model to date. Online collaboration and document sharing? That territory is recognized as valuable by everyone, and this move by MSFT may just capture the flag - they already own the Office onramp.

    I personally think this is a great strategy - and tremendous news for small organizations like ours that need to collaborate internally and externally - but don’t have the time or desire to invest in the infrastructure, especially if someone else does it for us.