Microsoft Risks Margins as Office Business Fights Off Google - BusinessWeek

A timely snapshot

Microsoft Corp. President Stephen Elop is preparing for the biggest shakeup to the $19 billion Office business in a decade as the company races Google Inc. to sell Internet-based programs.

Two years into his career as head of Microsoft’s business software unit, Elop says cloud computing and social-networking sites have created a “constructive disruption” that could be more of an opportunity than a threat. Office 2010, due by June, will include a free Web-based version for the first time, matching similar software from Google. Future updates may add Twitter-like functions that allow users to post short messages.

(POK comment: I think it’d be more accurate to say “surpassing” or “leapfrogging” rather than “matching,” when it comes to Office Web Apps versus Google Docs; check out the Web Apps beta at Windows Live Skydrive, by creating a new doc (and/or uploading existing Office docs), as in:

 

It’s not feature-complete yet, but you’ll get a good idea of the capabilities and user experience.)

Microsoft Risks Margins as Office Business Fights Off Google - BusinessWeek