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June 29, 2011

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Microsoft looks to the 'cloud'

MICROSOFT Corp is making its biggest move into the mobile, Internet-accessible world of "cloud" computing this week, as it takes the wraps off a revamped online version of its hugely profitable Office software suite.

The world's largest software company is heaving its two-decade old set of applications - including Outlook e-mail, Excel spreadsheets and SharePoint - into an online format so that customers can use them on a variety of devices from wherever they can get an Internet connection.

It wants to push back against Google Inc, which has stolen a small but worrying percentage of its corporate customers with cheaper, web-only alternatives, which remove the need for companies to spend time on installing software or managing servers.

"It's obvious that Microsoft has to do this if they're going to remain competitive with Google," said Michael Yoshikami, chief executive of money manager YCMNET Advisors. "It's something they have to do.

"If they execute effectively and it's adopted, it could be a game changer," said Yoshikami. "Whether or not that will happen is a whole other story."

Microsoft has offered online versions of some Office programs - chiefly Outlook e-mail - for its corporate customers for several years, and last year rolled out free versions for individual home users.

The market for Internet-based software services is heating up.

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