Microsoft Office heads to the internet

Following Google’s initiative, archrival Microsoft, Sunday revealed its plans to deliver more software technology over the internet for corporate customers willing to pay a monthly subscription instead of license fees. A new web component in the desktop-based Microsoft Office will allow users to store, share and comment on documents but there is no provision for creating files online.

The service called, Microsoft Office Live Workspace will give users about 250 megabytes of room where some 1,000 average Office documents can be stored. Users will be able to upload Word, Excel and PowerPoint files and invite friends or colleagues to read and add comments to those documents through a Web browser.

However, the text can be edited only if the user has bought Microsoft’s Word or Excel software.

Users with Hotmail, Xbox Live and other Microsoft accounts can use that information to log on to Workspace and send invitations to their stored contact list. The service is compatible with Office 2003 and Office 2007.

Microsoft also said, over the next few months it will start to provide e-mail, instant messaging and collaboration software to companies with more than 5,000 workers. Those applications will run on computer servers inside Microsoft's data centers and then be delivered to customers over the Internet.

Redmond, Washington-based Microsoft describes its strategy as “software plus services.” Gradually more, according to industry analysts, software will be a blend of online and offline abilities.

Microsoft claims that even with additional web components the products will work the same as existing offerings but the software will run on Microsoft's computer servers. The administrators will maintain nearly the same level of control as if the software was on their own computers, the company said.

Microsoft believes that progression of profits from its services business will also depend on its competence to run those facilities.