On Thursday, a select group of testers will gain access to the beta test of Microsoft Office Live, a free, Internet-oriented version of its popular business software and services.It's been said that nothing in life comes free.
Apparently Microsoft never got the message. The Redmond -based powerhouse wants to lighten the IT load for smaller companies with a free, Internet-oriented version of its popular business software and services.
On Thursday, a select group of testers will gain access to the Microsoft Office Live beta test. Office Live offers companies help in establishing online presence, and includes a number of free services including e-communication capabilities.
"We are changing the landscape of how small businesses get on the Web," said Baris Cetinok, director of product management and marketing for Microsoft Office Live. "We've chosen to focus on this customer group because they are most technologically underserved in industry today. Our goal is to make them more visible."
Microsoft created Office Live for companies with ten employees or less. The advertising and subscription-supported service is designed to offer these customers security in accessing and managing e-business applications.
Microsoft has broken down the Office Live options to cater to varying small business needs. While the service contains several core components – including free domain name, Web site and e-mail accounts - Microsoft is offering three different versions, including Office Live Basics, Office Live Collaboration and Office Live Essentials.
"There are several different options, which we will essentially offer for free by using advertising support to cover costs," said Cetinok. "The ads will only appear in the Member Center [of Office Live]. Customers can also host advertising from different vendors on their Web sites. Microsoft will not step in between."
Office Live Basics is Microsoft's entry-point product for small businesses, and will remain a free service during and after the beta test. Basic offerings include a company domain with free Web hosting and 30MB storage capacity, five domain-specific e-mail accounts with 2GB storage, a Web site design application, andbasic Web analytic tools.
"The second tier of offerings will be subscription-based," said Cetinok. "These services are designed to help small companies take the next step – to centralize information in a single place and start managing their business more effectively online."
Office Live Collaboration integrates business management applications and is based on Microsoft's SharePoint Services technology, which offers Web-based communication and collaboration capabilities. It will be available as a free service during the beta test phase, and will then be offered on a monthly subscription basis.
Collaboration subscribers receive "shared sites," or private, password-protected Web sites that can be used by employees, customers, vendors, etc., to share and store data and other documents.
The shared sites offer 50 MB storage capacity and are accessible on an "invite only" basis. Customers can opt to set permissions so that only authorized individuals can access the secure information. The company can grant up to ten users permission to access a single site, and can opt to purchase additional access in blocks of five users, according to officials.
Office Live Essentials, Microsoft's top-tier small business option, is a combination service with all of the features available in both Basic and Collaboration. Pricing details for the Office Live suite have not yet been confirmed; however officials estimate consumer costs to start at $30.
Microsoft announced its Office Live concept on Nov. 1, 2005 and has since rounded up a waiting list of 100,000 customers, who will be able to access the services as of 6 am PST on Wednesday Feb. 15.
"We're having a beta test to watch how participants use our product and to see what aspects we should improve on – there's always room for improvement," said Cetinok. "Our goal is to integrate their feedback in an almost real-time basis."
The beta test is expected to run through late fall, 2006, at which time Microsoft will launch an official US version and will also offer beta versions in other countries.
"We will be looking into markets like China, France, Germany, etc.," said Cetinok."We want to create localized versions of Office Live so that businesses in those countries will have their own software and services."
A number of companies that cater to the niche small business audience have starting voicing competitive concerns. WebEx, a company that has been offering similar "Web office" software commercially since 1999, describes Microsoft's recent foray as a "haphazard" attempt to enter the largely untapped market.
"Small business owners have very different business challenges and IT needs that only the most experienced vendors can provide," said Rick Faulk, president of WebEx, in an interview. "Instead of red tape and compliance, they are focused on minimizing distractions and streamlining processes, providing them with more time to get things done."
WebEx's Web Office is a suite of online collaboration and business applications, aimed at companies of all sizes. Users can access and customize a number of features, including announcements, calendars, database applications, document libraries and task managers – essentially 'to-do lists' that users can sync to Outlook or any Palm device.
WebEx charges a base fee of $59.95 per month, which covers five users. Customers can pay an optional fee to add additional users. Bottom line: WebEx's Web Office will run you approximately $10 per user per month, according to officials.
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