Also new are 35 user-requested features, including file searching capabilities and integrations with web services like Flickr and Google Image Search. However, one of the most exciting pieces to the upgraded service is the newly launched mobile component. With Acrobat.com's smartphone application, users won't just have access to their files on the go - they can also scan in new documents with their phone's camera.

The one major new feature in this release of Acrobat.com is the file organizer. Before, files could live in three different places on the service. Now all files are accessible through one main interface.

The file organizer itself includes some handy features, too. Instead of using a traditional folder structure like you have on your computer's hard drive, the service introduces something called "collections." These are more like iTunes playlists than file folders (or even labels in Gmail) because files can be assigned to multiple collections instead of having to sit in just one folder.

Another key component to the organizer is a file search tool. Believe it or not, the online service had no way of helping you find your files until now. Although the current search capabilities don't yet offer full text search of your documents, Adobe says that may come further down the road.

Also new is the organizer's "import and edit" feature which lets you open external files directly into the appropriate program so you can begin to work on them online. In the past, you had to first launch the program, then import the file. This time-saving step is more akin to what rival Google Docs offers via their upload feature except that in Acrobat.com, you don't have to click a link to open the uploaded file - it happens automatically.

Other New Features

The various online office programs themselves have seen improvements as well in this new release. Buzzword is leaving beta and now it, along with Presentations, lets you import images from online services like Flickr and Google Images in addition to the images found on your computer. One drawback to this feature, though, is that the online image searches don't offer filtering by license type, so a user could easily get into trouble by adding a copyrighted or otherwise licensed photo into their document if they neglect to check permissions first.

The Tables app, still in beta, now has the ability to do more data sorting and filtering. It also adds new views including a print layout view that shows what the document will look like on the printed page.

Acrobat.com Comes to iPhone, Blackberry

One of the more exciting developments is the new Acrobat.com mobile application which will be made available to Blackberry and iPhone users shortly. Built in conjunction with a company called scanR, the mobile application lets users take advantage of their mobile phone's camera to add new files to the service. After taking the photo, the app uses OCR technology to convert the image to text. How well this works is unknown at this time because the app has not yet arrived in the respective app stores.

The app also lets users view their files in a read-only mode, convert them to PDFs, and share them with others via fax or email. There will be two versions of the app made available - a free version and a premium offering which will allow for more PDF conversions and faxes.

According to Adobe, the Acrobat.com service is faring well. They already have 6 million users and add around 100,000 more each week. While a lot of users are students and SMB owners looking for a free alternative to more expensive Microsoft Office software, the company says they're also seeing the service picked up and used in small workgroups at larger companies. However, Adobe admits that they're not an enterprise play yet and they also won't reveal how many people use the premium version of the service - only that they're "happy" with the number thus far.

If you want to try the upgraded online suite, you can do so at www.acrobat.com as of tomorrow (Saturday, November 21st) at 6 AM EST.

Although still limited to users in the U.S. and Japan, participants in the Technical Preview are able to access the web versions of the Office programs through Windows Live SkyDrive, Microsoft's online cloud storage service and a part of their Windows Live suite of tools and services.

SkyDrive, which provides each user with 25 GB of online storage, is used to host the documents created using the Office Web Applications. For now, the service is entirely free. However, during our earlier interview with Takeshi Numoto, the corporate vice president of the Microsoft Office Product Management Group, we questioned him about future monetization plans for the online suite. He wouldn't confirm any details, only saying that Microsoft was "experimenting" with several options. To date, nothing has changed on that front.

At the moment, the Technical Preview is not offering full access to all the Office programs - only Word, Excel and PowerPoint are currently available. There is a placeholder for OneNote, but it displays a message reading "Still to come..." when clicked. We're told that OneNote support is due later this fall. That should be relatively soon, considering that it's already October.

The web version of Microsoft Word is also incomplete at this time, allowing you to view files but not create or edit them. Only Excel and PowerPoint allow for both read and write access at the moment.

According to Microsoft, the Technical Preview program is designed solely for the purpose of collecting user feedback prior to the broader beta release of the service. No date has been given for the beta launch as of yet but the online suite is due to ship next year alongside Office 2010, the next version of the company's desktop software suite.

How to Join

If you're interested in signing up for the Technical Preview, you'll need to establish a Windows Live ID if you have yet to do so. Hotmail and Windows Live Mail users should already have one - it's your @hotmail.com or @live.com email address. You can then sign up for the Technical Preview program via this link. As noted above, you will need to select either the United States or Japan during signup, as those are the only two countries supported at this time. After completing the sign up process and accepting the license agreement, your Windows Live ID will have access to the Web Applications by way of SkyDrive.

We got a chance to talk to Takeshi Numoto, the corporate vice president of the Microsoft Office Product Management Group, last week. He gave us more information about the Office Web applications. The web-based applications were designed to work on any browser and should even work on most mobile browsers. While some functions will only be available when Microsoft's Silverlight is available on a machine, Silverlight is not a requirement to run most features of the web applications. Numoto stressed that the apps will run on Firefox, Safari, and, obviously, IE, though Google's Chrome is suspiciously absent from this list (Stephen Elop, the head of the Office division explains why at the end of this interview).

The web applications will be tied in closely with the desktop clients, and the online storage will be managed through SkyDrive. For consumers, the web apps will be hosted on Windows Live and will be available for free, although Numoto remained tight-lipped about possible plans to monetize the apps through advertising. We could only get him to acknowledge that Microsoft was indeed 'experimenting' with various options, which we can only assume includes advertising.

Real-Time Collaboration

Another important aspect, which also ties in with a feature that Microsoft is stressing in the desktop applications of the Office suite, is the ability to collaborate on any document with various users simultaneously - including those using the web applications. While we haven't seen this in action, having a rich-text editor at hand for real-time collaboration on Word and PowerPoint documents is going to be a very exciting feature for a lot of users (however some third-party service providers who currently offer similar services will probably not be happy about this).

Enterprise: Office Web Behind the Firewall

For enterprises, Microsoft will offer two solutions. One will be hosted as part of Microsoft's Online Services. Another version, however, will be available for companies to host on their own servers on top of SharePoint. For enterprises, especially those that have long felt that cloud computing wasn't for them, this self-hosted version of the browser-based Office suite is going to be a very attractive solution, especially considering that all of Microsoft's 90 million Office annuity customers will get access to this version as a regular part of the updates that come with these volume licenses.

As Numoto told us, Microsoft believes that this will allow the company to differentiate itself from other companies that offer office solutions in the cloud. While Takeshi was careful not to mention any competitors by name, it is obvious that this is aimed at Google (and perhaps less so, startups like Zoho and ThinkFree).

Clearly, this release will be a major deal for consumers and enterprises. A free version of the browser-based Office application that easily syncs with the desktop version and allows collaboration between users on both systems is going to be a big deal.

What About the Desktop?

The desktop apps obviously also got a make-over. But compared to the shift to Office 2007, the current release features only minor cosmetic updates from what we have seen so far. The integration of the web apps looks like the most exciting addition, as well as the ribbon interface becoming standard across all the applications. Also, Microsoft is putting a lot of emphasis on real-time collaboration, and different users can now edit documents simultaneously. Alhough Numote emphasized that all edits can be reversed.

Numoto also stressed the Office team focused on improving some of the most often used features. As an example, he told us that cut and paste is obviously one of the most popular features in Office, but that Microsoft found that after pasting something into a document, the key that was used the most often afterward was 'delete.' In order to improve the cut and paste process, Office will now feature a 'cut and paste preview,' similar to the feature that Office 2007 already offers for changing styles and fonts, for example.

Outlook aficionados will also be happy to hear that the email client will now feature an option to 'ignore' unwanted threads.

While the Technical Preview, which was announced today, will only be available for a limited number of users, the beta program will be open to everybody. Microsoft expects to ship the final version of Office 2010 in the first half of 2010.

So far, we haven't had a chance to actually test-drive the desktop or web apps ourselves, but you can expect an in-depth review from us once we get access to the beta.

In saying that, you may think we're overlooking Office Live Workspace, Microsoft's own web-based service for storing and sharing documents with family, friends, or colleagues. After all, it does come with its own plugin for the Microsoft Office software which allows you to both open and save documents to and from your online workspace.

However, while both Google Docs and Office Live provide online storage and easy ways to share files, Google Docs has Office Live beat when it comes to collaboration, a key reason for the service's popularity. Where Office Live uses SharedView for screen sharing a document with another user in real-time, Google Docs allows multiple users to collaborate in real-time without the need for desktop software. Google's service can even alert you via email notifications when changes have been made. Microsoft's soon-to-arrive "Office Web Applications" may end up giving Google Docs a run for their money (especially considering it will work on the iPhone), but at the moment, Google Docs is the better choice for real-time collaboration.

Why OffiSync?

The only problem with Google Docs is that, in some people's opinion, it's just not as good as Microsoft Office software. Of course, that's an entirely subjective statement - you may or may not agree (In fact, it's likely you don't, given that you're reading a blog about web apps and web technology). Still, there's a large user base of folks who launch Office every day instead of a browser, and it's for those people that OffiSync was designed.

Test Drive

Through a simple Office plugin, you're provided with a new menu seamlessly integrated into either your Microsoft Office 2003 or 2007 software.

From the menu, you can open, save, search, email, and more, as you can see from the image above. In this case, "open" and "save" refers to opening and saving to and from Google Docs, not your PC.

Saving Files

Our one complaint involves the "Save" and "Save As" options. When we opened an Office document that was saved only on our PC, and went to upload it (save it) to Google Docs, neither "Save" nor "Save As" defaulted the title of the doc to what it was already named. Instead, it displayed "untitled." This is obviously only a minor issue, but one that becomes an annoyance if you use OffiSync to upload a lot of previously local-only files to the Google Docs service.

Browsing & Interacting with Google Docs

Using either the Save or Open menu options, you'll be presented with a dialog box which has tabs for both browsing and searching your Google Docs. There's even a drop-down box that lets you switch between multiple Google accounts if necessary.

We were surprised that you could even interact with the Google Docs service from within this dialog box. For example, a right-click on any folder gave us options to create a new folder, delete the folder, or refresh. This was especially handy as we began to upload and organize our local stash of files. You can also drag-and-drop files from one folder to another.

Searching

The search feature also worked really well, searching not only document titles, but also within the documents themselves. However, if you're looking for a document title using partial text, you'll need to use an asterisk (*) in order for the search feature to locate your file.

Collaborating

With the plugin, you can invite collaborators or modify their permissions. In a dialog box, you simply enter their email address, assign read or write permissions, then click "Save." You can then choose to write a short message and configure your notification options. It's just as easy as using the Google Docs service itself.

At the moment, in order to see real-time edits, you still have to use the Google Docs service in the browser. However, OffiSync creator, Oudi Antebi, is working on a feature that will let users see updates in real-time as two or more people open the file in Office.

Conclusion

The OffiSync software is shaping up to become a must-have add-on for anyone who can't part with their Office installation but wants to enjoy the features of Google's cloud-based service. It may even provide some competition for the upcoming Office Web Applications...if OffiSync ever expands beyond Word, Excel and PowerPoint, that is.

Antebi plans to keep OffiSync free for consumers but charge for the enterprise version, which will be available later this year. It's hard to say if that's the right strategy - after all, we're consumers and we'd be willing to pay for this plugin - it's that good. But given Microsoft's plans to debut their own Office web apps later this year, Antebi may have no other choice but to keep it free for consumers in order to stay competitive.

We just hope that OffiSync doesn't end up with the same fate as that other Google Docs/local docs sync service DocSyncer - they didn't make it. But, we think there's a chance that OffiSync will be able to thrive where that service did not thanks to Antebi's plans to integrate even more Google Services (like Google Maps) into the software in the future. That alone, could give it a unique selling point that no one else provides. He also plans on making the search feature more robust, giving users smart filters to find the files based on metadata (names of collaborators, file type, size, location, etc.). That, too, will be a useful feature - especially as more and more of our documents are transitioned to Google's web-based service.

If you want to try OffiSync for yourself, you can. The download is now available for everyone from the OffiSync web site.

When adding the gadgets to iGoogle or Gmail, you won't have to enter in your Zoho account information in order to access your Zoho data. That's thanks to the oAuth support built in. In order to add a custom gadget to Gmail, you must first turn on a particular setting in labs which allows for this (Enable "Add any gadget by URL" in Labs).

Note: To learn more about custom Gmail gadgets, go here.

In social networks like Facebook and Orkut, the gadgets function more like applications. Once you click the link on the Gadgets page to add them to your profile, you'll be taken to a page where you'll need to enter in your account information before they will appear in your Applications list.

Finally, for OpenSocial compatible networks and applications, a link to an XML file is provided and for anywhere else you need a gadget, there's a generic embed code that can be used.

For anyone thinking of making the switch from Google Docs or Gmail over to the Zoho Suite, gadgets like these can make the transition easier as you'll be able to keep up with what's new even when you're still in your Google applications. And for those of us who spend entirely too much time in social networks, having these gadgets on hand means we won't miss out on the important information that matters most.

The new Zoho Chat 2.0 is no dumbed-down client. It offers most of the features that you have come to expect from your IM desktop applications. You can send files, record your chat history, customize your theme, and more - just like regular IM apps allow. It does a few cool tricks, too. For example, you can type in a new event in the chat bar at the bottom of Zoho Calendar to create a new appointment on the fly. In Zoho Meeting, you can launch desktop sharing with others from within the IM application. (Windows only for now.)

The chat tool is also able to send you notifications from activities that take place within Zoho itself, including document sharing notifications, unread chat messages and more - definitely a handy feature. Future releases for chat include plans to introduce even more IM networks, most notably Skype.

This release represents a major upgrade of the chat application in Zoho. Current Zoho users can try Chat 2.0 here as of today: chat.zoho.com.

The word processor itself is rather rudimentary. There are some basic options for formatting your text, aligning it, highlighting it, etc. You can also choose to insert photos and links from the "Insert" menu or create bulleted and numbered lists. Beyond that, the tool doesn't do much in terms of word processing. Also, at the moment, the files you create can only be saved in .HTML format. Other formats like .TXT, .ODT, and .DOC will arrive in later, says the company.

If basic word processing was all that Shutterborg did, it probably wouldn't be worth a mention just yet. However, the "Open from Web" option that is presented to you upon launch is a pretty clever invention. Here, you can enter in any URL on the internet to open an exact replica of that web page, with the CSS and images intact. You can then edit it as you desire which could obviously lead to some humorous creations.

That feature alone makes Shutterborg worth a look simply because it's so easy to use. Although the resulting HTML file won't look like much if opened outside of the Shutterborg processor, it's easy enough to grab a screenshot of your mocked up creation while you have Shutterborg open. The potential for creating hilarious edits to well-known sites will certainly appeal to the creative types out there. We can't wait to see what they come up with. 

Shutterborg is a creation of developIT, a small business in Waterloo, Ontario, Canada whose focus is on developing web sites and Rich Internet Applications (RIAs) for businesses of all sizes.

• In 2004 Ludicorp, creators of Flickr, was named Best LittleCo and Feedburner Most Promising. Both of course have since been acquired (by Yahoo! and Google respectively).
• In 2005 37Signals was Best LittleCo and Memeorandum (now Techmeme) and Digg were joint Most Promising.
• In 2006 YouTube was Best LittleCo and Sharpcast Most Promising.
• In 2007 Twitter got Best BigCo and (in a bit of a break from tradition) we named "the open source movement" as most promising - a loose-knit group that aims to make a huge impact by tying all Web companies together. Last year we thought there was no single Web company that was more promising, and we have probably been proven right as our Best Web Platforms 2008 post showed (OpenSocial, Android, Mozilla Weave, Fire Eagle, ...).

Now let's find out who is ReadWriteWeb's Best LittleCo of 2008...

Best LittleCo of 2008: Zoho

We felt that Web Office vendor Zoho best represented the 'LittleCo' ethos this year, due to its David vs Goliath effort in competing head on with products from several very large companies: Microsoft Office, Google Apps, Salesforce.com's core CRM platform.

Zoho not only competed with these bigcos, they were innovative and scrappy about it. And in a year that will be remembered for the economic downturn, Zoho is a reminder to us all that we can work ourselves out of a down economy.

Zoho made two of our year-end Top 10 Products list - in the International category and in the Enterprise catagory. It is an Indian startup that offers a number of office tools, project management software and CRM solutions. It made serious advances with its office productivity suite during 2008, reaching a milestone of 1 million users in August this year.

Some of the specific highlights this year include: updating Writer at the beginning of 2008 to include support for the DocX file format, along with several other features; adding support for Visual Basic compatible macros to Zoho Sheet in April, then macro record and playback four months later; releasing a marketplace in September; Zoho Mail emerging from private beta in October, while offering offline support via Google Gears.

Our one note of caution with Zoho is that, as you can see from the above screenshot, it has so many products that it potentially spreads itself too thin. Some of its products show a lack of depth as a result - we focused on some of those issues in a post in September. So we're not claiming Zoho has the Web Office market cracked, just as Twitter had some issues last year when we chose it as our Best LittleCo. But overall, we applaud Zoho for its continued innovation and for competing effectively against the big guns!

After the jump, ReadWriteWeb's pick for Most Promising for 2009!

Most Promising Company of 2008: Brightkite

Again this was a tough choice. We were impressed with the potential of many apps this year. Open source music app SongBird, micro-lending service Kiva, online finance service Mint, health social network PatientsLikeMe - to name just some. However we ultimately came back to a type of application that made a breakthrough this year: Mobile Web. We named Apple Best BigCo of 2008 due to its iPhone platform, but we think there's still a lot of untapped potential in mobile. In particular no one company has yet broken through with a mobile-native social network. We think mobile social network Brightkite may become that app.

Brightkite was named in our Top 10 Mobile Web Apps of 2008, in which Sarah Perez explained that Brightkite includes an iPhone app, but it's much more than a toy for the exclusive club of iPhone owners. The service - a device agnostic, SMS-based application - lets you "check in" at various locations out in the real world and then see who else is there, has been there, and who is nearby. You can check in via text, web,or iPhone, but text is easiest if you're using a traditional cell phone.

While Brightkite hasn't been hugely successful yet in terms of numbers, we think it has a lot of potential. There's still some debate as to whether consumers really want new and separate social networks for the mobile phone. As we noted back in October, no other social network, including those specialized for mobile devices, had even reached 15% adoption. That means Brightkite and others like it still have a way to go before they become a solid part of the new mobile web.

However, if any of these apps have a chance for success, it's Brightkite. With the service's Twitter integration and live event niche, it offers something unique.

So there you have it: Zoho is our Best LittleCo of 2008 and Brightkite is our Most Promising for 2009. Agree? Or feel like arguing about it? We invite you to let your feelings known in the comments.

Why electronic fax instead of faxing using a good old 'All-in-one' fax/printer/scanner machine? Well for one, it's more convenient for many people to send and receive faxes by email, which is what electronic faxing enables. Also, electronic faxing allows you to get an international fax number. And electronic faxing doesn't tie up your phone line. Bottom line: so many of the basic tasks any business has to deal with these days can be more efficiently done over the Internet; and faxing is no exception.

I asked the friends of RWW on Twitter today which solutions they recommend.

Several people suggested efax.com - and that's the one I signed up for, given that it has a 30-day free trial. It's $12.95 per month from then on, which is a bit of a premium on the other services mentioned in this post. But efax.com appears to be the market leader in this niche.

efax.com is a nice, simple web solution for faxing. There are no real 'web 2.0 frills' to it - no collaborating with other fax users, no rating faxes, no commenting on faxes, etc. It actually sounds a bit silly to suggest those features in this context. Because let's be honest, electronic faxing doesn't need any of the trendy 2.0 features - faxing over the Web is a simple and direct service that people will actually pay for.

$12.95 per month is about half the price of a basic Basecamp project management account. Although you could buy a fax machine for a one-off price of $100, so in reality you are paying a premium for the convenience of faxing over the Web.

What other electronic fax solutions are out there?

salimmitha tweeted that "the best one which i have used for ages is Maxemail - and you can easily get a US fax number - love it"

Dan And Jennifer said that "we've been using RingCentral for a few years, it's inexpensive and it just works; actually it's fax AND voicemail w / call forwarding."

Bill Mitchell suggested Faxzero.

Other options include send2fax.com, FaxMicro, smartFax, Data On Call, TrustFax and FaxItNice.

The pricing of all these services starts at around $10-15. There are a couple of free providers, but they put ads on your faxes - not a good look if you're running a business and using the service to send signed contracts. $10 per month seems reasonable for an electronic fax service and there's definitely still a business need for it.

Do you electronic fax and if so which service do you use?

UPDATE, 19 March 2009: We have updated our post to use the term 'electronic fax', rather than the term that was previously used, due to a legal letter we received.

The online versions will share the same names as their desktop counterparts (Word, Excel, etc), although unfortunately they don't fully escape the awkward and confusing branding that Microsoft gives to most of its Internet apps. The collective name for these apps is "Office Web Applications". To remind you, there is also an Office Online (a separate Microsoft site where users can download templates) and an Office Live Workspace (for sharing office files between desktop and Web - our coverage).

The "Office Web applications" will be available to consumers through Office Live, a service which has both ad-funded and subscription options. Business users will be offered Office Web applications as a hosted subscription service and through existing "volume licensing agreements". There will be a private technology preview of the Office Web applications later this year.

Last month we ran a poll asking which word processing tool you primarily use. We got over 2,600 separate votes and a resounding 49% of people still use Microsoft Word as their main word processing tool. Its open source desktop equivalent OpenOffice got 16%. Google Docs was the best placed Web Office app, with 15%.

The results showed that there is still a big place for desktop Office apps. Nevertheless, with the announcement yesterday of Microsoft Azure - a so-called cloud computing OS - Microsoft is clearly serving a growing demand for browser-based office software. We expect these apps to become more full featured over time.

In Part 2 of this story, we reveal some of Zoho's cookbook.

At the Web 2.0 Expo in New York last week, Jason Fried of 37 Signals, another company that has done well by defying conventional wisdom, advised entrepreneurs to "follow the chefs". He meant that great Chefs give away their recipes. That just makes you want to come to their restaurants even more. Particularly if the recipe looks complex. And Zoho's looks complex.

So I hope they won't mind me giving out the recipe they revealed when I met with Raju Vegesna, one of their founders, last week. I noted 3 major ingredients:

1. New ways of competing for talent

2. A related cash cow business

3. Pragmatic, non dogmatic approach to winning business

New Ways of Competing for Talent

If I had to select one "secret sauce" in Zoho's recipe, it would be how they recruit. Zoho (with parent company, Adventnet) has 700 developers. All the developers are in India, specifically Chennai.

India is a ridiculously competitive market for developer talent currently. I see parallels with Silicon Valley in 1999, when average developers got inflated expectations and inflated paychecks. Attrition is problem # 1.

Developers see their career path as managing other developers. Your mojo is based on how many people you manage. Managing 1,000 makes you ten times better than managing 100 and so on. This is the reverse of America where a developer will drop custom service work as soon as it is possible to work on a product.

This is a terrible environment for a product company to compete for talent. How does Zoho compete for talent in this market?

1. Hire from school. Yes, school, not college. So they don't compete to hire from final year of College or in the even more hot market of developers with a few years experience. Great code is typically written by young people - which explains a lot of the "college drop out makes $ billions" stories in America.

2. Pay one year of college fees. This is a salary, not a loan, with no strings attached. According to Raju, 90% join Zoho at the end of that year, but there is no obligation. This gives Zoho an edge with the brightest at school as they have an unusual offer.

Zoho's philosophy is that 4 years college when you are young is not right for many people. Better to have life-long learning but get real world experience early and get some cash while you are at it. This gets a big "yes" from parents paying college fees!

Zoho have their own Zoho University. This is not uncommon for big employers in India. It is a necessary complement to hiring early.

Related cash cow

Zoho has a related cash cow business that enable them to fund Zoho. This is not unlike Google. Microsoft's problem is that their cash cow - Office - is the one that both Google and Zoho are going after. That gives them one nasty Innovator's Dilemma.

Zoho's initial cash cow business is selling network management tools. This has been profitable for 12 years. Zoho itself is due to be profitable next year.

The network management tools business is doing the same as Zoho - products at least as good as the competition for a fraction of the price. This business also gives Zoho a capability for running large data centers, which is a core competency for a SaaS business.

Pragmatic, Non Dogmatic Approach to Winning Business

By all accounts, Zoho won GE's business in head to head competition with Google. GE wanted to cut cost and enable collaboration, which meant Microsoft was less of a contender. Google was the obvious "you never got fired for choosing" winner. Why did GE choose Zoho? There are two likely reasons:

1. Zoho allowed GE to run the software in their own data centers. GE has the economies of scale to run their own data centers and clearly prize the control that this enables. Zoho specified the hardware, but GE bought it and deployed it. Is a "Zoho Appliance" far behind?

2. Visual Basic Scripts in Spreadsheets. Current tech orthodoxy frowns on VB, but if you have thousands of existing Excel spreadsheets running VB that would be a show-stopper.

At Web 2.0 Expo in New York this week I met up with Raju Vegesna, one of Zoho's founders, to find out how they're succeeding despite the odds.

Everything about this story is improbable. And gloriously old fashioned. When I met Raju Vegesna, I kept on thinking this was some kind of time warp. Zoho has simply ignored much of the conventional wisdom. Consider:

1. Product breadth. Look at the range of products they sell. This defies the conventional wisdom that you should focus on one thing only. When I put that to Raju, he replied that the 'one thing' model "works if you are building to sell the company". That's right. The classic model is to build one product that slots right into the acquirer's portfolio. In Web 2.0, when speed is everything, even products take too long and so you just built features. The hierarchy is: features go into products and products go into companies. But Zoho is clearly building a company.

2. Building to last. Every startup says they are build to last, publicly. Nobody advertises that they are building to flip. But Zoho looks like they really are building to last. They don't have VCs on board with an exit compulsion. Nor do they need VCs. They can finance internally and make money personally the old-fashioned way, from dividends, knowing their equity value is also building every day.

3. They run their own data centers and buy all their servers. No, they don't use Amazon Web Services or even conventional hosting vendors. They run 1,000 servers in two data centers, one in California and the other in New Jersey. In a SaaS world where performance/reliability are differentiators, running data centers is a core competency. They have the cash flow to buy their own servers!

4. They charge real money for their software, with no advertising. But the price is really low. This is like WalMart. This is like Basecamp, reasonable prices for great software. That is so boring! In branded consumer goods, buying expensive conveys status. In software, buying expensive when there is an equivalent at lower cost, simply conveys a willingness to burn money.

A Serious Contender

Do you still think that Zoho cannot possibly be a serious contender? GE, after a vigorous evaluation including Google and Microsoft, selected Zoho. That is 400,000 desktops up for grabs worldwide. GE is a master at taking costs out of established processes, they do it relentlessly and continuously and they know how to evaluate and manage the risk of working with start-ups. Where GE break a trail, others are likely to follow. You can view a GE presentation about this deal here, from the recent Office 2.0 conference:

This is Part 1. In the follow-up post, Zoho Part 2: The Cookbook, we look at how Zoho works in more detail.

Image from Wikipedia

No matter which department you're in, Web 2.0 technologies have had an impact. If you've been ignoring their prevalence and adoption, you're at risk of falling behind in your career and your business is at risk of losing ground to its competitors who are tuned into this trend.

Here at ReadWriteWeb, we deliver news about Web 2.0's impact on business in addition to news about web technologies in general. Depending on your area of interest, you can find a lot of great information on this subject in our archives. Or simply bookmark this post for easy reference.

Document Collaboration Suites

GroupSwim is an innovative company which has created an intelligent community building and collaboration SaaS solution. They aim to connect individuals and build knowledge utilizing social based methodologies. Read more.

DreamFactory's suite of Enterprise 2.0 applications consists of a Project Management module, a Time and Expense Module, a Document Manager, and a Team Calendar. Originally, the company was available on Amazon Web Services, but now DreamFactory's software will be available on Intuit's QuickBase platform, too. Read more.

Box.net offers collaboration functionality which allows any Box.net user can invite collaborators to any folder in their account. The collaboration feature is also fully compatible with all the OpenBox services, which extends online collaboration beyond just word processor documents, spreadsheets, and presentations, similar to what Google Docs currently offers. Read more.

The term groupware refers to applications that facilitate real-time communication, coordination and collaboration amongst groups of people. A number of startups are working hard to develop the nascent groupware market, so in this post we identify some of those startups and provide an overview of where the market is heading...read more.

What's the Deal With Wikis?

Only a handful of years ago, it was common to hear people laugh at Wikipedia. Anyone can edit it! How could you take it seriously? These days, just as blogs are, wikis are on their way to winning a reputation as serious publishing platforms. Wikis are now serious business. Read more.

Atlassian Confluence, makers of one of the most popular enterprise wiki solutions, offers Microsoft Office and SharePoint integration in their release of the Confluence 2.9 software. With these new tools, users no longer have to know the technicalities of wiki markup or even how to use the included rich-text WYSIWYG editor in order to make changes to the wiki - they can simply open up a Microsoft Office document instead. Read more.

WetPaint, a popular hosted Wiki solution, provides person-to-person and private messaging between users of their Wiki network. This means that Wetpaint Wiki users can now send single or multi-person private messages, to connect and collaborate with others about their interests. This post introduces wikis and discusees who is using them and for what purpose.First, wikis are described and then the range of wiki products in the market right now is explored. Read more.

Leave it to people in the wiki market to know how to collaborate. Nearly 20 different wiki providers have teamed up to offer a new Firefox extension that will notify users whenever they are on a page that is publicly editable, using a standard icon that sits in the same place the RSS autodiscovery icon appears. Clicking on the icon (img. on the left) will take you to that page's editing interface. Read more.

What's Office 2.0?

Web Office Defined: A Web Office suite is a combination of productivity, publishing and collaboration features. A Web Office both embraces the functionality of desktop office suites (e.g. Microsoft Office) and extends it by using Web Native features. Read more.

The State of Office 2.0: Over the past 10 years, Corel, Sun, IBM and others have tried to compete with Microsoft in the office software business, but thus far none of them have been able to take a significant chunk of Microsoft's large market share, which generates revenues exceeding $15 billion each year. These companies have tried everything; including Sun open sourcing their StarOffice suite and releasing it as the free OpenOffice. Yet, even this very compelling move has not been able to make a serious dent in the market. Read more.

Microsoft announced their Office Live Workspace is publicly available for everyone to access. The site, a free web-based extension of Microsoft Office, lets you access your documents online and share your work with others. Some say that the service's launch is a direct response to Google's entry into the web office space with their Google Docs online service. If that's so, then the question now is: did Microsoft just trump Google Docs? Or does Google Docs still rule online office suites? Read more.

The Web Office was a market that underwent a lot of changes in 2007. Our definition of Web Office is: A Web Office suite is a combination of productivity, publishing and collaboration features. A Web Office both embraces the functionality of desktop office suites (e.g. Microsoft Office) and extends it by using Web Native features. The 2007 year in review: Read more.

This is the perspective of a "skeptical, later early adopter"; the sort of person who Microsoft needs to retain and should have been able to retain easily. I don't spend time on productivity tools that may at some date make me more productive, but which today are just a frustrating time sink. That describes the majority of people. MS Office can be annoying, but it does work. So any serious alternative has to offer a significant advantage and at the same time make adoption a total breeze. Read more.

EditGrid, the main product of HongKong-based company Team and Concepts (TnC) Ltd., is a leading Web 2.0 online spreadsheet service that focuses on online collaboration and interoperability. Read more.

eXpresso was named as one of PC World's 25 Most Innovative Products of the Year for 2007. PC World succinctly summed the product up: "[it] allows Excel users to share their spreadsheets, online or off." eXpresso is different from the web office contenders that you normally hear about on ReadWriteWeb for three reasons...Read more.

Zimbra is looking to expand its platform to the iPhone. Recently they announced Zimbra Mobile for iPhone 2.0. Zimbra Mobile for iPhone 2.0 will allow iPhone users over-the-air two-way synchronization of e-mails, calendar, contacts, and photos between user mailboxes and mobile devices, and seamless "push" e-mail service for all Zimbra Collaboration Suite users. Read more.

News from the Office 2.0 conference in San Francisco, 2008. Read more.

What's Happening in the Enterprise 2.0 Space?

A report released by Forrester Research is predicting that enterprise spending on Web 2.0 technologies is going to increase dramatically over the next five years. This increase will include more spending on social networking tools, mashups, and RSS, with the end result being a global enterprise market of $4.6 billion by the year 2013. Read more.

Enterprise 2.0 is Happening: If you're a business who has been ignoring the Web 2.0 trend and the spread of social media: look out, the tide is shifting and you're about to be left behind. The rise of social media didn't happen overnight, the power of the internet to unite people, the ubiquity of broadband, the rise of Gen Y, the development of new technologies for socializing on the web - all of these things and more have led to the rise of social media. And this new force is affecting change in the way that companies do business - now and for many years to come.

The break-up of behemoth, vertically integrated enterprises commenced in the 1970's, got a boost from junk bond financing in the 1980's, and accelerated in the 1990's with globalization. Now, late in the 2000's, Social Media (aka Web 2.0) is adding another gear that will accelerate the fundamental restructuring of the enterprise. Read more.

Most enterprise software sucks. That is my considered opinion from 30 years in the software biz. Words that come to mind are: bloated, inflexible and user hostile. The good news is that it is getting better, a lot better. The driver for change is what I call the consumerization of enterprise software. These new software champions typically have some if not all of these 8 main attributes...Read more.

The Enterprise 2.0 Launch Pad program is a program that allows companies to showcase their products and compete for the opportunity to present their ideas to the community at this year's Enterprise 2.0 Conference. This competition, organized by Stowe Boyd, began in April when companies were invited to post their video pitches to the E2 web site. After the community voted, the list of contenders was narrowed down to five finalists who will now compete for the final spot. For that grand prize winner, the prize is free exhibit space at the upcoming conference. Read more.

SharePoint to run Enterprise 2.0? 9 companies are saying "yes," having recently launched Enterprise 2.0 offerings that integrate with SharePoint technology. If there's one thing that any I.T. pro knows it's the value of "maximizing their investment" in whatever servers they run, technology they use, or services they've signed up for. With strict budgets in place, no I.T. purchases are bought on a whim. Instead, each decision is researched, tested, thoughtfully considered, and, if worthy, purchased, then rolled out to become a part of the I.T. infrastructure. SharePoint is no exception. Read more.

Is 2.0 Affecting My Industry?

Yes! Check out the examples below of Web 2.0's impact on various industries and fields.

Finance/Banking

Google is announced that after more than a year of work on the problem, Google Finance is now offering real-time price quotes for any stock traded on NASDAQ. Read more.

Strands, the recommendation and lifestreaming service we've written about here before, announced a much anticipated deal that will put it in the driver's seat for financial recommendations served up to millions of online banking customers around the world. The company's recommendation test-case in music is no longer all they will be known for around the world. Read more.

We reported on a survey that revealed that 48% of online banking customers between the ages of 18 and 34 would be interested in using "secure gadgets for personal banking" if their bank offered them. More than a quarter of bank customers would consider switching to another bank if it took better advantage of web 2.0 technologies. While that survey was flawed in some ways, there is another access point to banking information that customer may want more than secure widgets: mobile. Read more.

48% of Bank Customers Want Web 2.0 Gadgets. WorkLight, a startup that offers enterprise 2.0 products, recently did a survey among Facebook users to find out their willingness to use Web 2.0 tools for secure banking. The survey was conducted among 1000 Facebook users between the ages of 18-34. The fact that the survey was conducted among Facebook users gives it a bias towards tech-savvy people. However there are some surprising findings. Read more.

Accounting

Online Accounting: State of the Market: Accounting software for small business and personal use is increasingly moving from the desktop to online. However, compared to other office software, this transition to online has been relatively slow. Partly that's due to user reticence: writing a document online and sharing it with others (via Google Docs, Office Live, Zoho, or whatever you use) is one thing. Entering sensitive financial information into your browser is harder to adjust to. Read more.

Project Management

Add this one to your web office toolkit - LiquidPlanner is an online, hosted project management tool that lets you access and update projects anywhere you have an internet connection. The service offers you and your team a complete project environment, social networking and collaboration features, and a probabilistic scheduling engine which tells you the probability of completing each task - and ultimately the entire project - by a certain date. With everything organized into a centralized dashboard that can be customized for each team member, everyone on your team can stay focused on their tasks and how they relate to the project as a whole. Read more.

The Clarizen project management software came out of stealth mode last year and has now just launched a new version with additional features. The latest version, Clarizen v 2.0, will be demoed at the "Under the Radar Conference," an event held on Microsoft's campus whose current theme is "The Business of Web Apps: Where the Web Goes to Work." Read more.

Enterprise 2.0 is a rapidly growing trend that takes the concepts and tools of social media (social networking, RSS, wikis, blogs, etc.) and re-purposes them for business use, wrapping them up into applications that make the tools at work seem more like the tools we use in our day-to-day lives. While these enterprise 2.0 apps give us that web 2.0 feel, it's rarer to see actual Web 2.0 services like Facebook or Twitter used by businesses. And although we've seen many people promoting the business use of Twitter, we had not yet heard about anyone actually going so far as to integrate Twitter into a non-consumer focused application. However, that's just what Joint Contact has done. Their PM tool now shows how tweeting can actually be a productive activity. Read more.

37Signals offers a range of applications, from simple, single-function apps like Ta-Da Lists (to-do lists), Writeboard (collaborative word processor), and Campfire (group chat) to more complicated apps like Basecamp (project management) and Highrise (group contact manager). Read more.

Health

Health 2.0, web-based apps and services for the healthcare sector, is a nascent but potentially huge market for web 2.0. As of now, many of these apps have an emphasis on communication, information sharing and community. These are relatively easy things to address using Web tools. However we're starting to see health 2.0 apps try to tackle the enormous inefficiencies in the healthcare system - check out our description of Carol.com below. Also, in the longer term, we will see the Web being used in medical diagnosis and practice. Read more.

The Health 2.0 Conference is reviewed here and some of the health web apps that caught our eye as well as trends that are discussed. Read more.

Google announced the public availability of Google Health, after initially launching as a closed beta back in February. It is described as "a safe and secure way to collect, store, and manage [your] medical records and health information online" and is being positioned as a way for users to control their own medical records. Read more.

HR

Traditional resumes are boring. They become stale and out-of-date, they can't really showcase your work or achievements, and they end up just sitting in the bottom of someone's inbox. A paper resume, while professional, doesn't really let an employer get to know you. Many sites are trying to solve the problems of traditional resumes by providing job seekers a new way to stand out in the crowd. Read more.

The iPhone has been making headway in its battle to become a business-ready tool. Obviously, the addition of Microsoft Exchange support was a big step towards being considered a viable alternative to the traditional smartphones used at work, like Blackberry and Windows Mobile. However, beyond simply supporting enterprise email, the iPhone platform has a lot of potential to cater to the needs of its business users, too. Read more.

LinkedIn has an audience that is both younger (41 vs 48) and richer ($106k vs $98K). LinkedIn was also naturally crowing about their growth (189% for year ending Oct. '07) and the chart from Nielsen which shows comparative Facebook growth at 125%. Note that Facebook growth is from a higher base and the law of large numbers applies, but Facebook has always crowed about their growth rates vs the larger MySpace, so they have to live with growth rate comparisons to LinkedIn now. Read more.

Marketing

Viral marketing, user-generated content, online buzz: over the past few years, these terms have been representative of a new way of marketing to consumers that takes advantage of the current popularity of the social web. This new technique involves companies encouraging its customers to create content of their own in order to generate interest in the company's brand. Unfortunately, one of the potential side effects of this strategy is the potential for negative buzz. Despite this fact, a surprisingly low percentage of marketers are monitoring for negative responses. Read more.

Using the new pilot program from a company called Involver, Kiva launched a video campaign on Facebook to draw users to their site to lend directly to these developing nations. The video even features a button that appears at the end of the video encouraging you to "lend" money. Read more.

Mobile marketing startup, TextBound, has big plans to make text messages the new mass media for advertisers. Like we mentioned earlier, more and more companies are going to be betting on location based mobile ads this year, and TextBound hopes to capitalize on this trend. But unlike mobile social network/marketing vehicle, Fluc, TextBound isn't about connecting with your friends, it's about delivering ads to your cell phone via text message, then taking you to the mobile web for more details. Read more.

Recently, HiveLive announced a new partnership with Responsys, a marketing firm whose client list includes some big-name brands like Apple and Salesforce.com. Enterprise 2.0 is sure to follow. What Responsys offers their customers are on-demand email and marketing solutions that can be anything from web sites to email to mobile. With the new partnership with HiveLive, they can expand that offering to include enterprise social networks. Read more.

Widget platform Clearspring has an ad network that will allow widget publishers to monetize their widgets with advertising. The ads run inside widgets and come in a variety of formats. Clearspring has already inked deals with some of their largest widget publishers to run ads, including the NHL, 20th Century Fox, Lionsgate Films, Blockbuster, and Virgin Mobile. Read more.

Imeem Taking Off - Before MySpace Music Has Even Launched

Music-based social networking site Imeem is getting a lot of the right kind of press currently, based on strong traffic growth and key deals with record labels. We last wrote about Imeem in March, when they launched a developer platform that enabled read/write access to user information and more. As we explained then, Imeem is a site where users can listen to licensed streaming music, as well as upload music and blog about it - all for free. Now, Imeem is the third-largest social network in the United States after MySpace and Facebook; and it's now the No. 1 streaming music site in the US.

The Fire Eagle Has Landed: Yahoo Opens Its Location Platform to All

Yahoo announced that the close beta period for its location platform Fire Eagle has ended and that the service is now open for everybody. We wrote about Fire Eagle extensively when the beta was first announced. Since then, a number of high-profile services, including Brightkite, Movable Type, Dopplr, and Pownce have implemented Fire Eagle through the numerous APIs Yahoo provides for accessing the service.

Wiki Editing Just Got Easier: Atlassian Confluence Releases Office Connector

Atlassian Confluence, makers of one of the most popular enterprise wiki solutions, announced this week a Microsoft Office and SharePoint integration in their latest release, Confluence 2.9. With these new tools, users no longer have to know the technicalities of wiki markup or even how to use the included rich-text WYSIWYG editor in order to make changes to the wiki - they can simply open up a Microsoft Office document instead. Also, with the addition of the SharePoint connector, Microsoft's well-known collaboration and document sharing platform gets a big dose of Enterprise 2.0 goodness, which is sure to please the end users. However, Confluence makes I.T. happy too, thanks to their inclusion of tools - like LDAP integration and administratively controlled permissions - that are designed just for the needs of the enterprise.

See also: The Semantic Desktop? SDS Brings Semantics To Excel

Google Should Buy eXpresso

Like a lot of people, Bernard Lunn had problems with Google Apps this week. Sure, Google "feels his pain" but they also lost his confidence. And confidence is a delicate thing. What crashed was Spreadsheet. That has always been the weakest component for Google and the strongest for Microsoft. Excel rocks, its just a tad behind the times on collaboration. But in this post we explain how Google could still win the spreadsheet game by buying eXpress Corp.

Livestreaming From Qik and Flixwagon Comes to the iPhone

It's no secret that the iPhone lacks video recording capabilities, which has served as a huge roadblock for companies and services that would like to introduce services that take advantage of video capabilities. For users that love to livestream or lifestream from their iPhones this is also a huge drawback. Well worry no more iPhone heads because Qik and Flixwagon have both introduced their livestreaming apps to jailbroken iPhones!

SEE MORE WEB PRODUCTS COVERAGE IN OUR PRODUCTS CATEGORY

Web Trends

Olympics: Only 0.2% of Viewers Exclusively Watch Online

According to the Wall Street Journal, the Olympics are off to a good, but not amazing start on the Internet. Over the first three days, NBC's online coverage drew an average of 4.7 million viewers per day, with the numbers steadily rising over the weekend. So far, Sunday was the most watched day, with 5.1 million total users and 3.42 million streams. According to the same article, only 0.2% of all viewers exclusively used the Internet to watch the Games, while 90% used the traditional TV coverage exclusively and 10% used both the Internet and TV.

Does Good Tech Need PR?

Behind the scenes of many tech blogs these days, there's a rat race for attention, with PR agents struggling to overcome the noise of feeds, news sites and other agents in order to get coverage for their clients. Tiny web tech companies pay $5k, $10k or more per month for PR agents to work the media, old and new, in hopes that it will help them find wider audiences. Big companies spend far, far more on PR. Is that really necessary? Won't great technologies find their own audiences when their undeniable value is discovered by one person and passed on to the world at large?

The App Store: Soon To Be A Billion Dollar Marketplace?

Anyone who has the iPhone or iPod Touch can tell you that one of the best things about owning the device is the ability to add apps from iTunes App Store. Although many of the apps that we talk about here are the free ones like the social networking apps, the instant messaging apps, and the blogging apps, it's the paid apps that are making the store a financial success.

See also: How To Lifestream From Your iPhone

Data Portability Working Group Elects New Leadership

The high profile but heretofore loosely organized Data Portability Working Group announced this week that it has elected its first group of Steering Group officers. The Working Group strives to help user data become freed for secure re-use across different websites and services. The first chair of the Steering Group will be Daniela Barbosa, who is a Business Development Manager, at Synaptica, a Dow Jones company. Can the Data Portability Working Group overcome some early shakiness caused by the perception that it's all hype and no substance? The group got big press when Microsoft, Google, Facebook and many other companies publicly joined up - but critics allege that press is all that's been accomplished.

Startup, Inc - What You Need to Know Before Starting a Company

Often people start a company without any clear idea of what a company is. Entrepreneurs closet themselves in the garage and start writing code. While the modern tech world could not exist without obsession, artistic inspiration and crazy engineers, there's more to a startup than passion. In this post, we explore the basics behind corporate entities, stock, financing, and the key non-technical infrastructure every company should have.

See also: 12 Unit Testing Tips for Software Engineers

SEE MORE WEB TRENDS COVERAGE IN OUR TRENDS CATEGORY

RWW Live

Future of Blogging

The latest episode of RWW Live, our live podcast show, was on the topic of 'The Future of Blogging'. It was based on a must-read post that Sarah Perez wrote last week and one I wrote a couple of weeks back. We had two special guests on the show this week: Aaron Brazelle of the Technosailor blog and Muhammed Saleem, an occasional contributor to RWW and a social media consultant.

Select RWW Live Episode 5

That's a wrap for another week! Enjoy your weekend everyone.

The SmartDesktop application is designed to be used by individuals who to assist with organization of emails and files by project. (A framework for developers is also available). The application only works on Windows machines and supports the following applications:

• Microsoft Outlook 2003, 2007
• Microsoft Word 2003, 2007
• Microsoft Excel 2003, 2007
• Microsoft PowerPoint 2003, 2007
• Microsoft Visio 2003, 2007
• Microsoft Project 2003, 2007
• Internet Explorer v6, v7
• Mozilla Firefox v1, v2, v3
• Adobe Acrobat v6, v7, v8
• Adobe Reader v7, v8
• AutoDesk AutoCAD 2007, 2008
• Compatible with Google Docs
• Compatible with Zoho Sheets

While traditionally a software program like this would stick to only supporting other desktop software, the company seems to have taken note of the online office trend and has decided to branch out from being solely tied to the machine to support some cloud apps as well. With support for both Google Docs and Zoho (only Zoho Sheets, unfortunately), there's a chance for SmartDesktop to succeed among the online crowd as well. That is, assuming they continue to add support for online services, including the rest of Zoho's suite.

To really benefit from a program like SmartDesktop, you need to have a lot of data stored in files across both the web and your machine and no time or inclination to organize it on your own. But you don't need to work on "projects" to use SmartDesktop; it is meant to organize anything that you're working on, whether personal events, managing clients, doing research, planning a budget, etc. In SmartDesktop, a "project" is just the container for the files, email, and web pages that are related to each other.

This structure takes SmartDesktop beyond being just another desktop search app. Instead of just scanning your hard drive for keywords, it starts with a project-oriented view of your information and doesn't even index the information you haven't touched. This way, search results are faster and contain much less noise.

Will SmartDesktop really help people deal with information overload? Those interested in finding out can can sign up to be alerted when the beta is made available for download: just click here.