Office 2010: Micorsoft Moving to a Cloud-based FREE Business Model?

Filed in archive Cloud Computing on July 17, 2009

In the words of Mashable, it was expected and inevitable: Micorsoft is putting one of their flagship products, Office, one the web. Included in the web-based version of Office 2010 you'll find Word, Excel, Powerpoint and OneNote, "full lightweight versions of the products, allowing users to create, edit, save, and share docs on the Web. And, like obvious competitor Google DocsGoogle Docs, Office Web Apps will be available for free." Although you will have to have a Microsoft Windows Live account (just like you have to have a Google account to use Google Docs).

Ben Parr took a look at some of the new features he thinks are most interesting - including improved security and real-time collaboration. TechCrunch has a more in-depth review of the features if you have the time.

VentureBeat asks the big question that everyone knows is hanging in the air over this: How does Microsoft make any money out of a free version of Office 2010 available online? Above the Crowd looked recently at how a free business model can be disruptive for your competitors. Google has done that to Microsoft with its free online apps. Microsoft is making $15-$20 billion a year from Office. How does it keep doing that, and still offer it for free? VentureBeat thinks this could play out like Revenge of the Nerds...

Speaking of comedy... One of Microsoft's marketing videos for Office 2010 is embedded below. Makes you wonder if the boys in the marketing department there have been snorting copier ink or inhaling white out fumes or something...