Microsoft to launch online office to compete with Google

BEIJING, July 14 (Xinhuanet) -- Microsoft has gone head to head with Google as it announced on Monday it is to release a free Internet based version of its Office software. The online Office will compete directly with Google's well established Docs suite which launched three years ago. Microsoft's application will include lightweight versions of Word, Excel, PowerPoint and OneNote when it ships next year.

The news comes after Google last week announced it was to launch a free operating system to directly compete with the software giant. But some analysts fear it may cost Microsoft an enormous amount in lost revenue. The Wall Street Journal estimated it could "put at risk as much as 4 billion U.S. dollars in revenue." Nevertheless it is considered to be a bold move in attempt to keep people using Microsoft products.

"The software giant has woken up," Emil Protalinksi, of online blog Arcs Technica, writes. "It is promising to know that such a traditional software company is responding to the 'threat of the cloud' to its core business by embracing it." Investors appeared to like Microsoft's move and boosted shares by almost 3.8 percent higher to close at 23.23 dollars.

Microsoft say that its 400 million customers who are Windows Live consumers will have access to the Office web applications at no cost. The Office Web Apps are designed to work with Internet Explorer, Firefox and Apple's Safari. Google's Chrome will probably work, but support isn't listed in the official documents from Microsoft at present. However the software based version will not be available for Apple Macs until late 2010 at the earliest. For PC users a beta version may be out by the end of 2009 with the complete product pushed out by 2010. There has been no word on cost and while Microsoft have highlighted the new advances of its new suite, it may be difficult to draw people away from what they already use.