Software and the Cloud

Microsoft Office 2007 in 'The Cloud'

Microsoft has announced a limited project codenamed 'Albany'.

The company has started testing a new way of selling its Office software suite on a subscription basis, packaging it with security software and free online services. It will allow consumers to download and install Office 2007 and then receive updates for a subscription instead of a more traditional one-time license fee.

Consumers will also receive Windows Live OneCare, a Web-based security software, and online applications including Windows Live Mail and Office Live Workspace.

One problem at the moment is that Microsoft has not disclosed how it plans to set the pricing for "Albany" or when it will be widely available. It does though potentially herald a new way way of 'selling' its core desktop applications.

Steve Ballmer, Microsoft's CEO, has been talking a lot in recent months about Microsoft's mission to offer 'Software & a Service'. I have thought for some time that this might be a prelude to moving to an online subscription model. It makes sense. And Microsoft Office 2007 is the perfect candidate.

Microsoft needs to re-position its core applications to be web-based, yet sitting on the desktop. This is of course, the current 'actuelle'. Research services within Office 2007 today involve interaction with remote data servers. It's just that users are not in the main aware of this or other web service functionality contained in these apps. Most users still regard Microsoft Office 2007 as simply being a desktop app.

If Microsoft is to get this re-positioning right, 'Albany' is a step in the right direction.