Stan Beer
Saturday, 23 September 2006 09:17
Opinion and Analysis
Page 3 of 3
The latest Yahoo Mail product provides a look and feel and
functionality very similar to the desktop based Outlook. What does
Microsoft do when Writely, Google Spreadsheets and a plethora of other
online products being developed also match Microsoft Office products
for functionality?
Will businesses and home users be prepared to
pay US$500 or even US$200 for an Office 2007 license, when they can
simply register as a free user with Google or Yahoo? Not likely.
Microsoft is in a similar position to what newspapers faced 10 years
ago, when the internet emerged as a better and cheaper pull medium to
distribute news and information. The newspapers found themselves faced
with the prospect of being forced to go online but, in doing so, they
had to cannibalize their own legacy products.
Sooner of later, Microsoft is going to be forced to make Office a suite
of free web services supported by advertising. The dilemma facing
Microsot is that the company is damned to the annals of technology
history if it doesn't and damned to the tune of US$12 billion a year if
it does.