Facing pressure from hosted productivity suites such as Google
Docs and Google
Apps, Microsoft is planning a new package of low-end productivity software
and hosted services through a secretive project code-named Albany.
Project Albany puts together a combination of Office, Office Live Workspaces,
Windows Live OneCare and the Windows Live suite of services in one package that
eventually is expected to be available in retail outlets such as Best Buy, sources
familiar with the company's plans said Wednesday.
The sources, who asked not to be named, said Microsoft is asking select testers
to try out the Project Albany beta, but is requiring them to sign a non-disclosure
agreement just to participate in the test. The main focus of the initial beta
is to test the unified installer for the package, they said.
Office is Microsoft's enormously successful productivity suite, and it's unclear
how much of that product will make it into Albany. Because of its price points
and functionality, Office Home and Student 2007, which includes Word, Excel
and PowerPoint, is the most likely candidate for inclusion in the new suite,
which is expected to be fairly low-cost. Office Home and Student 2007 retails
for US$149.95, about $250 less than Office Standard 2007 -- which in addition
to Word, Excel and PowerPoint also includes Outlook and has a list price of
$399.95.
Other products that are expected to be a part of Project Albany are hosted
services Microsoft has developed over the past few years. Office Live Workspaces
is Microsoft's hosted service for storing and sharing documents online, while
Windows Live OneCare is a security service that includes firewall and antivirus
protection. Windows Live services include hosted e-mail, search, photo-sharing
and other services; it is also not certain at this time which of these services
will be a part of Albany. However, one source said the Windows Live products
included in Albany will be client-side applications such as the desktop version
of OneCare, Windows Live Messenger and Windows Live Writer, not hosted services.
Through its public relations firm Wednesday, Microsoft confirmed that it sent
out beta invitations for a product code-named Albany, but declined to share
additional details.
Because of its history of selling packaged software, Microsoft is adopting
a software-plus-services approach to providing applications online to compete
with Google's free and low-cost hosted services such as Google Docs and Apps,
which are beginning to encroach on Microsoft's historical packaged-software
territory. Other companies such as IBM also offer free productivity applications,
although IBM's Symphony suite is not a hosted service.
Microsoft executives have said that the company eventually will offer a hosted
version of Office, even as the various packaged versions of Office continue
to be successful in the consumer and business markets. With Albany, the company
could be trying to create a hybrid product that wouldn't cannibalize its software
business even as it moves Microsoft's services strategy forward.
