Microsoft is going to offer web based office applications. Microsoft, a strong leader in the traditional office space, was not talking about their plans in the web based office space. Their silence allowed companies like Google, Zoho, Thinkfree, etc. to get a very good market share in this space. In fact, the success of Google Docs app in this space was a clear warning to Microsoft to come up with a web based version of their popular office software. It is pretty evident that Microsoft is going to lose out to these web based apps in the consumer market segment. With talks like Google apps for enterprise, there was a real danger for Microsoft in the enterprise segment too. But Microsoft still has a chance to establish themselves in the web office space if they can come up with a comparable service. It will be easy for Microsoft to convince the consumers, used to their traditional office products, to join their fold. Also a tight integration between their traditional office products and web based products will turn out to be a killer combination. With today’s announcement, during the annual meeting with financial analysts, Microsoft has taken the first step in this direction. According to Microsoft CEO, Steve Ballmer, all of the Microsoft’s application will have a web services component in the next 3-10 years. How fast they roll out their products, their pricing strategy and how well they integrate it with their traditional office products, will determine the success of Microsoft in the web office marketplace.

Tags: Microsoft, Google, Zoho, Thinkfree, office, office 2.0