Microsoft is placing big bets on Office 2010

Microsoft is placing big bets on Office 2010 changing life for small businesses.
Microsoft is shifting its focus from selling small businesses licences to install its software to a subscription model as it prepares for the launch of Office 2010. The biggest innovations in Office 2010 are associated with mobile phone and internet connectivity.

Robert Epstein, head of small business, Microsoft UK, told Your Business that he expected the addition of web-based applications to the Office range to radically change the way that small businesses buy and use IT.

The applications will let businesses access, edit and share their Word, Excel and Powerpoint files remotely through the internet even if the software is not installed on their laptops or smart phones.

A standard bundle of software, which includes hosted Exchange email that can be accessed via an internet browser anywhere, costs £6.71 a month with a 12 month contract. (e-mail only is £3.36)

Mr Epstein said Microsoft was “recommending” that all small businesses take a serious look at this way of buying IT and services rather than acquiring hardware like servers that had to be maintained.

”For a small business the obvious offering we are recommending is the online route,” he said. “It makes an awful lot of sense.”

”We could be aiming towards 20pc usage within 12 to 18 months in some shape or form,” he added.

Firms with security concerns about using software and saving data on an outside system may decide it is not appropriate, said Mr Epstein. Those that had paid for bespoke applications to work with their software are also likely to prefer to have the software installed on their own IT systems.

Analyst firm Gartner is predicting that working with internet-hosted software, known as Cloud computing, will be the hot technology trend in 2010, but Microsoft believes that most small businesses do not know about the potential. “The awareness of this is incredibly low. There’s a completely new way of acquiring and using IT,” said Mr Epstein.

Unlike some software service providers, Microsoft will allow businesses to use both installed Microsoft software and its software that is hosted on the internet.

It means that businesses could chose to move just new members of staff onto the online service rather than junking their existing systems overnight.

Microsoft has been selling web-based software to small businesses for some time, including its Microsoft Office Live Web software that lets firms create websites and, for a fee, access documents and manage customer information online.

But Mr Epstein said the latest updates now gave small businesses access to sophisticated business process tools in the office and remotely and the ability to better manage the demands of the increasing flow of information about customers and suppliers.

”It’s the big leveller for small business. That capability when the snow hits to convert that crucial meeting in room five to a video conference online with document sharing over your phone, web browser or PC,” said Mr Epstein.

Microsoft cut the cost of its existing subscription-based services by over 30% in November and has just announced lower than expected US prices for its five Office 2010 packages.

It was announced as new pricing and the change varied across the individual products. In a move that may appeal to start ups and home-based businesses, those buying Business and Office Professional are able to install the software on both their PC and laptops. However, only the entry level Office Home and Student version is available as a family pack, allowing usage on three PCs in one household. This version does not contain Outlook.

http://www.telegraph.co.uk/finance/yourbusiness/