September 22nd, 2006
Should Microsoft Works become a Web-based suite?
What will Microsoft do with Microsoft Works, its low-end desktop office suite, aimed at home users? That’s been an open-ended question, ever since the Works team was moved under Microsoft Business Division Jeff Raikes almost two years ago.
BusinessWeek reported last week that Microsoft has decided to turn Works into a Web-based suite. (Reuters re-reported that story yesterday.) When I asked Microsoft for confirmation, a Microsoft spokeswoman said that nothing was set in stone regarding Works’ future. Microsoft might turn Works into some kind of low-end Office Live offering, she said. It might take components of Works and make them hosted, subscription-based services. It might make one or more Works pieces ad-funded downloads. Or it might redo Works as some kind of ad-funded, shrink-wrapped software program, she said.
Regardless of what Microsoft will do with Works, what should the company do with its entry-level office suite?
A number of PC makers have offered Works preloaded on new PCs for some time. Works, the retail version of which sells for $49.95, includes a word processor, spreadsheet, calendar, database, project organizer, address book and other features. These aren’t the same programs that are part of Microsoft Office, although they are compatible with them.
Will Microsoft make more money by continuing to charge PC makers wanting to preload desktop software $10 a copy (or whatever the actual fee for Works might be) than it would from advertisers interested in being featured on Works downloads? I’d like to see Microsoft’s spreadsheet (Works or Excel) analyzing that one….
While some industry watchers believe a Web-based Works could serve Microsoft well in preempting Google Writely, Google Spreadsheets and/or Google Apps for Your Domain, I’m not so convinced that those Google offerings need preempting. Google is a search-engine company, not an app vendor/hoster. Like Microsoft, Google wants to diversify its revenue base. But so far, it hasn’t managed to do so.
So what’s Microsoft’s best plan of action, in regards to works? Turn it into Office Live Works? Deliver Works as a free (maybe even Shared Source) downloadable? Integrate components of Works into the three existing Office Live SKUs (due to be launched officially in the coming month or two)?
I vote for Option No. 2 (freely downloadable) — but without requiring all the Office Genuine Validation hoops. If Microsoft really does want to provide an office-suite offering for individuals, I think this is the easiest and best way to get the product into their hands. Other opinions?
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