Microsoft To Offer Group Of Internet-Based Software
Posted on: Tuesday, 8 July 2008, 13:12 CDT
Microsoft Corp. will begin to rollout a package of new products in order to compete with rival companies that offer Internet-based software instead of traditional programs created to run on individual desktops.
The company announced on Tuesday that it plans to sell a package of four server products - Exchange Online, SharePoint Online, Communications Online and Live Meeting - to U.S. companies by the end of the year for $15 per PC user per month, and to global businesses in the first half of 2009.
The announcement came during Microsoft’s annual Worldwide Partner Conference for partner companies that resell its software to other businesses in Houston.
Microsoft started offering its Exchange e-mail server software and other programs to "beta" testers in March. Companies, such as Eddie Bauer Holdings Inc., were allowed to run Microsoft’s business software remotely in data centers rather than having to install and manage the software themselves.
Microsoft also announced a smaller version, which will give e-mail and Sharepoint access to "deskless" workers like nurses, factory employees and salespeople for $3 per user per month.
Microsoft is hoping to compete with companies such as Google Inc., IBM Corp., and business back-office software maker Salesforce.com Inc., who have already shown off their online alternatives to Microsoft's installed programs, arguing that this approach is less expensive and more flexible.
Microsoft has stuck by its pronouncement that consumers and businesses will opt for a mix of remotely hosted programs and desktop or on-premise programs.
In this case, Microsoft will still require companies to buy Outlook and other desktop programs powered by the remote servers.
Partners will also receive a cut of contracts for online services, totaling 18 percent the first year and 6 percent each year thereafter, Microsoft said.
“We wanted to make sure partners were really encouraged to transform their business, too, as the world moves toward software plus service model," said Chris Capossela, a senior vice president in Microsoft's information worker software group.
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Source: redOrbit Staff & Wire Reports
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