Microsoft has said that it might provide a free & ad-supported basic version of its word processor & spreadsheet tool online. This move is seen as Microsoft's counter against Google's recent innovations that provide free productivity tools online.
The software giant is looking to transform MS works, a package bundled with inexpensive computers offering basic productivity tools like word processor & spreadsheets, as an addition to its growing club of free web based services. It continues to launch new web services under 'Live' brand and is presently testing new software called 'Office Live' aimed at small businesses.
Alan Yates of Microsoft said that they are targeting amateur users and are looking to gain from business models such as advertising and various other payment and distribution models.
"A leader in computer software, Microsoft has never been in favor of distributing its software online and, that too, free of cost. However, seeing the competition from other firms, predominantly Google & Open Office, Microsoft has no other option but to distribute its basic productivity tools online and make money from advertisements", said an analyst at RNCOS.
Google announced last month that it has developed a free platform that can run a range of business tools like email, communications and scheduling software. Also, it said that its web based word processor & spreadsheet software may get bundled in to the platform. Google bought Writely.com, a word processing site in March this year and had began testing its spreadsheet software in June that allows creating, saving and sharing of spreadsheets on Internet.
Since majority of revenue is generated from Windows & Office licenses, Microsoft must design software that should not affect the sales of its Office suite that made up for firm's 1/4th of sales in 2005.
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