In one sense, Microsoft has jumped the gun in announcing a host of new web-based services long before the said services are actually available. In another sense, it may have procrastinated much too long before taking the decision to offer the new suite of Windows Live and Office Live services. Bill Gates' bread, butter and jam come from dominance in operating systems (OS) and a near-monopoly in office software suite. Windows and MS Office remain the default bundle of choice for the average user. However, changes in the networked environment make it impossible for Microsoft to rely on simple maintenance of monopolies. It is only a slight exaggeration to say that every corporate user and SOHO are now networked on broadband. | |
| Broadband-based networked environments make alternatives to Windows and MS Office easier to deliver. It is now possible for a small office/mid-sized corporate or a home-user to use a "thin client" or stripped-down PC with fast Internet access and almost no other features. At minimal cost and with a high degree of reliability, an average user can create content using software hosted by web providers and store that content on secure servers. What's more, the client is freed from the hassles of ensuring that the content is invulnerable to virus infections and hacker attacks. Linux-based OS are free and more secure than Windows in networked environments. Broadband speeds make it possible for web-based service providers to deliver office-type services (word processing, spreadsheets, presentations, database search and maintenance, HTML content creation, server space) smoothly, securely and without lags. Google, Yahoo! and more niche players such as Salesforce have exploited Microsoft's apparent lassitude and developed their own user-bases using these delivery models. Hence the paradigm shift for Microsoft. |
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| The beta offerings of Windows Live include better Windows Instant Messenger and Webmail services (to which existing Hotmail/IM users can smoothly upgrade). It offers an online virus-spyware scan and an integrated PC-health checkup. It also offers space to store online bookmarks so that users can access their favourite sites conveniently from any location. All these services are widely available elsewhere. Microsoft is presumably hoping to become a one-stop shop. Most importantly, non-Windows users will be able to run these services, so Microsoft may lure back a chunk of the Linux-Staroffice-Firefox market. The revenue model is based on targeted advertising, rather than subscriptions""a concept that has worked for Google and Yahoo! |
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| Office Live has a 2006 launch date and Microsoft is notorious for long postponements. It's aimed at businesses with fewer than 10 employees. It includes secure web-hosting services and seamless integration with content produced by the MS Office programmes. It will supposedly offer customised billing and accounting software as well as invite independent developers to join as collaborators. But Microsoft might not be able to establish the same hammerlock on web-based services as in operating systems and Office software, for it may have come too late to this particular party. But Microsoft's entry will light a fire under Google and Yahoo!, leading to a bonanza for users. And, Microsoft has a history of regaining lost ground in markets such as for browsers and web-mail. So, it may just be able to pull this one off. Give Bill Gates the benefit of the doubt. |
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