A few reports are circulating that Microsoft will offer a free, ad supported version of Microsoft Works, its 'lite' office suite, within the next few months. However the kicker is that it won't be a browser-based offering - as the rumor was back in September 2006. The free version of Microsoft Works will be a desktop app; and Microsoft will go back to its tried and true tactic of pre-installing it on PCs - it's not known yet which PC makers will be involved. Adverts will run within the programs, including the flagship word processing and spreadsheet apps.
The BBC reports that the service will debut with Version 9.0 of Works, which is due to launch by the end of the year. BBC says that "the ad-supported version will have a store of adverts it will show to people while they put together documents or spreadsheets. The store of ads would be refreshed every time that computer goes online."
This is just a "trial" that will run until mid-2008. The object is for Microsoft to find out if it can generate enough cash to support such a service. The usual retail price of Works in the US is $39.99, so to be frank this isn't much of a risk for cash-heavy Microsoft to take.
On privacy concerns, ArsTechnica notes that Microsoft won't use contextual analysis to place ads, quoting a Microsoft statement that "appropriate ad placement will be based on general Works users demographics."
It's a little disappointing that Microsoft is not releasing Works as a browser-based suite. OK, Microsoft's strength is in desktop apps and they want to leverage their Windows stronghold (i.e. tap into PC makers yet again). But making Works available as a free ad-supported desktop suite? It seems like a half-baked solution to the Web Office threat facing Microsoft Office.
Google Apps is improving all the time, although as yet it has a fair way to go to compete with Microsoft Office (the premium office suite, not Works). I use a combination of Google Apps, Zoho and ThinkFree these days to do all my docs and spreadsheets, partly because I am currently using a Mac and for some reason Parallels (which I run Vista on in my Mac) goes very slow for me.
Admittedly there are a number of niggly little things that online word processing and spreadsheets don't do as well as Microsoft Office. Even so, the fact that I can do word processing and more in the browser on any PC - and share documents and spreadsheets with my workmates and others - that's the reason I use Web Office products. Microsoft Works as a desktop suite mostly misses out on those benefits.
The reality is that Web Office suites aren't quite there yet in terms of functionality to compete with Microsoft Office. But they are quickly catching up - and Microsoft doesn't seem willing to offer any of its office products as a browser-based app. That strategy of sticking with the desktop may well win out in the end, based on Microsoft's huge market share in office software, but it seems like they're missing an opportunity to head off Google at the pass here.
It's like the America's Cup, where two yachts enter a tacking duel and both go in separate directions. Who will come out on top? It depends on vagaries like wind shifts and other weather factors. In other words, the environment. But usually the safe tactic is for the leader to cover the other boat, by tacking the same way as them. I would've expected Microsoft to do that too - to at least match Google in browser-based office software.
The ever-changing office environment will play a big part in office software over the next few years - which way will the winds blow? Will Microsoft regret letting Google go off in a new direction with Office software, without covering them?
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Releasing Microsoft Works for free, at this stage, is somewhat pointless.
It doesn't, however, preclude creating a browser-based version.
Posted by: Michael Griffiths | August 2, 2007 3:43 PMGood writeup Richard. You note that it's a desktop app to continue MS stronghold in the OS market. That's immediately what I thought when I heard the news. Why would they want to target the browser when they own the desktop? Also, it might be easier to get the product out the door this way.
I am not saying I agree with the strategy, but I do understand it.
Posted by: Allen Stern | August 2, 2007 3:46 PMIf you were Microsoft, and you were considering releasing an ad-supported, browser-based online office suite which competes with one of your main products, how would you determine:
- Do people want a free office suite that's supported by ads?
- Can advertising in an office suite bring in enough revenue to be worthwhile for us?
Isn't taking Microsoft Works and putting it out for free with ads a great way to answer both questions *now* instead of after all the money and time have been spent doing it?
Posted by: Dan Grossman | August 2, 2007 4:30 PMBack when I was still writing my personal blog (what's that?), I wrote a post about the shortcomings of online office apps and included what I'd like to see form Microsoft. I said that Microsoft already competes on price (Office can be had under $130 for students/teachers and Works was $49), but doesn't compete on anywhere access and collaboration features. So to do so...
Later, I wrote a post suggesting they should just buy Zoho (which I think has a more mature web office suite than Google anyway). That's probably not a bad idea. The Office Live tools are a mess (branding-wise anyway, whose bright idea was it to call something Office that isn't really all that related to the desktop product of the same name?), and integrating the entire Zoho suite into that offering would make a lot of sense and instantly put Microsoft ahead of Google in the online office wars.
As for me, though... I think I'll still be using Office 2007 most of the time for the foreseeable future. ;)
Posted by: Josh Catone | August 2, 2007 5:12 PMYep buying Zoho would be an easy way for MS to get into the browser-based online office suite game. Allen and Dan, I agree that it's a smart strategy for MS to utilize its desktop platform, but they are leaving themselves open to Google running away with the office market (in the future) if they don't cover the browser too.
Posted by: Richard MacManus | August 2, 2007 7:12 PMI'm not worried too much about Google running away with anything -- they'll bomb with the rest of this bubble when it bursts.
As for collaboration and access anywhere... Microsoft *does* have this and competes *very* effectively. Just not to the everyday home user; to the enterprise, where the money is, of course. Heard of Microsoft Office SharePoint? Online document sharing and collaboration is just the tip of the iceberg with it, and it ties in as well as all of Office with Office Communicator. If the people you collaborate with are using Communicator as their messenger client (which can connect to MSN/Live, Yahoo! and AOL networks), their status is shown both within Office applications and on the Sharepoint collaboration website. For example, all the owners of a documents' online status will be displayed below the document.
Posted by: Dan Grossman | August 2, 2007 9:06 PMI think collaboration is the key when it comes to the failure of this initiative.
Having bought a couple of Dell laptops and not wanted to splash out on MS Office, they came with Works. While a lack of features doesn't really bother me, simple word-processing and spreadsheeting was enough for me, the issue was that Works saved (in version 7, I'm not so sure now) to its own extension and would only open those files. It was not possible to open and edit a .doc. I'm not even sure if MS Office has the ability to open Works files either.
Collaboration online is one thing, but when your word processor is speaking a different language to the standard (if .doc is a standard in this case, bring on open document standards) you're stuck. In my case, the already free WordPad came to the rescue, causing my to open Office documents in it and copy to Works to work with. When finished I would then copy back and save with WordPad.
This hassle caused me to find OpenOffice and I didn't look back, until online versions appeared and now Google has my vote. The benefits of both? They both open .docs!
Posted by: Phil | August 3, 2007 12:13 AMHeck no there's no "browser version" that would defeat the purpose of Works; to "lock" you into the Windows operating system. Just use Google Docs and be happy.
Posted by: Todd | August 3, 2007 6:24 AM