29 June 2011 | Author: C. Tate
Office 365 is Microsoft's most serious effort yet to play catch up to rival Google in a market that analysts at International Data believe may be worth $73 billion (£45 billion) by 2015.
Companies can pay as little as $2 a month for the basic service, while the full set of programmes will set them back $36 monthly. This monthly subscription arrangement marks a new business model for Microsoft, as it previously spent the last 36 years licencing products on a yearly basis to its customers.
"It puts Microsoft in a better position than they were - they now have a broad product that they can sell more easily," said Michael Silver, an analyst for research firm Gartner, talking to the Telegraph.
Google has reacted to the launch of Office 365 with a post on its Official Google Enterprise blog entitled '365 reasons to consider Google Apps'. The search engine giant is keen to emphasis the flexible nature of their Google Apps product, with its multi-platform compatibility and ability to allow people to work on documents together.
"Office 365 is optimized for Windows-based PCs and devices, which reduces your flexibility. Our applications are designed to work well on any device, on any operating system. Desktop, laptop, Chromebook, tablet, smartphone. Windows, Mac, Linux, Android, Blackberry, iOS, Windows Mobile," the Google blog reads.
A company with 1,000 employees could allegedly save an average of $350,000 if they used Office 365, as they would be able to do away with the servers currently needed to run their existing applications.
Microsoft currently make $5.23 billion worth of profits, a large proportion of which comes from the sales of software applications installed on individual computers.
Office 365 marks a Microsoft cloud gambit
Office 365 is Microsoft's most serious effort yet to play catch up to rival Google in a market that analysts at International Data believe may be worth $73 billion (£45 billion) by 2015. Companies can pay as little as $2 a month for the basic service, while the full set of programmes will set them back $36 monthly. This monthly subscription arrangement marks a new business model for Microsoft, as it previously spent the last 36 years licencing products on a yearly basis to its customers.
"It puts Microsoft in a better position than they were - they now have a broad product that they can sell more easily," said Michael Silver, an analyst for research firm Gartner, talking to the Telegraph.
Google has reacted to the launch of Office 365 with a post on its Official Google Enterprise blog entitled '365 reasons to consider Google Apps'. The search engine giant is keen to emphasis the flexible nature of their Google Apps product, with its multi-platform compatibility and ability to allow people to work on documents together.
"Office 365 is optimized for Windows-based PCs and devices, which reduces your flexibility. Our applications are designed to work well on any device, on any operating system. Desktop, laptop, Chromebook, tablet, smartphone. Windows, Mac, Linux, Android, Blackberry, iOS, Windows Mobile," the Google blog reads.
A company with 1,000 employees could allegedly save an average of $350,000 if they used Office 365, as they would be able to do away with the servers currently needed to run their existing applications.
Microsoft currently make $5.23 billion worth of profits, a large proportion of which comes from the sales of software applications installed on individual computers.
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