Reuters reports that Microsoft is going to offer free web-based versions of its suite of Office 2010 products. This will include web-based versions of Microsoft Word, Microsoft Excel and Microsoft PowerPoint. ReadWriteWeb describes the new Microsoft products as "lightweight, browser-based versions of Word, Excel, PowerPoint, and OneNote (Microsoft's note-taking tool." Reuters says Microsoft will use the web-based concept to drive traffic to its online websites, including its new search engine Bing.
"Microsoft is finally making the conversion through the Web-based world. First, we saw that through Bing. Now we are seeing that through Office," said Jefferies & Co analyst Katherine Egbert.
Microsoft will offer for free to consumers Web-based versions of its Office suite of programs, including a word processor, spreadsheet, presentation software and a note-taking program.
Microsoft will also host one Internet business version of Office at its own data centers, charging companies a yet-to- be-announced fee. Companies with premium service contracts will have the choice of running a second Web-based version from their own data centers at no extra cost.
The company hopes to make money by using the free software to lead users to its ad-supported websites, including Bing. Analysts have said that Bing's early signs of success suggest Microsoft may be rounding the corner in efforts to turn around its money-losing Internet division.
Google also offers online word processing and spreadsheet software for free through its Google Docs software. Another company named Zoho offers an online suite of free office products that include a word-processor and a spreadsheet. The biggest issue with any free online services is security and some people and businesses may prefer the privacy of software that is installed on their hard drive instead of software that runs in a web browser. However, online office software offers collaboration tools that can help people working on the same document from different parts of the globe.
Microsoft must have decided the timing was right to move online. In addition to the free web-based software they will continue selling CD and downloadable versions of its Office products. Microsoft Office 2010 suites on CD-roms will still be available for purchase in stores.
Reuters says the Office 2010 products will be released in the first half of next year. The Office 2010 preview website can be found here. They are also on Twitter now, see @office. TechCrunch has posted some screenshots of the 2010 versions of Microsoft's Office products.
Reuters 
