Microsoft Office Now Online

July 5, 2008 Internet, News, Stuff, Technology 7 Comments

Microsoft  is ready to put its popular Microsoft Office suite online, including Word, Excel, PowerPoint and OneNote. Called Microsoft Equipt, the suite will join the software giant’s online offerings of Windows Live Mail, Messenger, OneCare and Photo Gallery.Previously code-named Albany, the consumer-oriented Equipt will be available for purchase on July 15 through Circuit City’s 700 outlets nationwide. Each $69.99 one-year subscription will cover up to three home PCs, Microsoft said.

“Certainly the initial move is to capture more consumer eyeballs,” noted AMR Research analyst Jim Murphy. “Though it’s unclear at this point what the next version of Office will look like, it’s likely that it will include a mechanism for Microsoft or its partners to monetize its widespread use — whether that’s through advertising or selling other value-added services.”

Microsoft’s move to make Office a consumer-friendly online service has some long-term implications for the small-business market. Gartner Client Services Vice President Michael Silver thinks we’ll “see more subscription offerings from Microsoft as time goes on” because it would give the software giant a “more reliable” revenue stream.

The software giant’s latest move basically adapts the model of Microsoft Software Assurance for enterprises to the home market, Silver said.

“Larger small businesses already have offerings like this through Microsoft’s open-licensing program, but the pricing and licensing is more commensurate with prices businesses pay,” Silver said. “Small businesses can probably expect something like this suited to them in the future, but may have difficulty buying this version in particular because it does not contain Outlook.”

The terms of the current consumer license will prevent a small business from using Equipt, Silver noted. “Microsoft says that business use of Equipt is prohibited,” he said.

When Microsoft eventually does offer a similar model to small-business users, it could cannibalize the software giant’s existing subscriber base. However, Murphy said that is largely expected under a SaaS (Software as a Service) model.

“It would indeed represent a disruption in the way Microsoft has typically in the past collected revenue from businesses,” Murphy said. “My sense is that Microsoft will offer subscription-based pricing for small businesses, and then medium businesses and large businesses. But they’ll still offer traditional pricing models for the companies that are accustomed and comfortable buying this way.”

Consumer subscribers to Microsoft Equipt will also get the latest upgrades anytime a new version of Office or Windows Live OneCare is released. “Equipt is targeted at consumers and the annual fee allows up to three PCs in a home to use it, just like the regular Office home and student licenses,” Silver said.

Silver noted that new-version rights have always been included for enterprise Software Assurance subscribers.

Shows Up to Virtualization Microsoft Hyper-V

June 29, 2008 Technology 1 Comment

Microsoft’s (Nasdaq: MSFT)   new hypervisor-based server virtualization software, Hyper-V, is now available for download, and it’s several weeks ahead of “schedule” — though it’s also months late. Microsoft previously wanted to deliver Hyper-V with Windows Server 2008. In any event, Hyper-V is here, and it’s real.

Hyper-V is a feature of some versions of Windows Server 2008, and while it’s available for download now, it will hit Microsoft’s Windows Update on July 8. It will also be available as a standalone solution that will sell for about US$28 later this year.

 

Virtualization software lets organizations that are running multiple, separate physical servers combine those servers virtually onto a single physical machine. By running several virtual servers on a single hardware system, organizations typically increase energy efficiency, reduce hardware footprints in crowded data centers, and save on administration and maintenance costs.

The current market leader for x86-based virtualization solutions isVMware with its ESX Server and related lineup of solutions.

Microsoft reported that more than 250 customers participated in its early adopter program, including firms such as Land O’Lakes, HotSchedules and The Scooter Store, though more than 1 million downloaded the solution during beta testing.

“By virtualizing everything, we have been able to increase our server utilization by a factor of 10, providing dramatic opportunities in consolidation and power savings,” noted Ray Pawlikowski of HotSchedules, an Austin, Texas-based company that provides online labor scheduling and handles 4 million logins per month.

In terms of competing with VMware and other Xen-based hypervisors on the market, Microsoft is betting that some customers will use it because of its integration with Windows Server 2008.

“It’s been designed as a Windows feature, which our customers know, so those with Windows Server certification will be familiar with it — the people who have all the in-house skills on Windows Server will know how to use it,” noted Bill Hilf, general manager of Windows Server marketing and platform strategy at Microsoft.

That integration, it turns out, may lead to widespread adoption.