Microsoft said Monday
it will let smaller businesses use some of its key software applications over
the Internet later this year, a sign of the company's rapid move to the Internet-centric
computing favored by competitors Google and Salesforce.com.
Last September, Microsoft opened its hosted software program, called Microsoft
Online Services, to businesses worldwide with more than 5,000 users. Businesses
pay a per-user subscription fee to access applications such as e-mail that are
hosted on Microsoft's servers.
Those subscription-based services are typically cheaper for companies than
installing applications on their own hardware. Other advantages include faster
software updates and lower maintenance costs.
Microsoft, which built its fortune on so-called shrink-wrapped software, was
criticized for moving too slowly in an area many analysts believe will develop
into a significant portion of enterprise and small-business computing.
Company Chairman Bill Gates [cq] is expected to further detail the announcement
on Monday in Seattle at a conference focusing on its SharePoint software. A
limited beta trial
of the services for small U.S. companies will start Monday.
Microsoft plans to make the services generally available by the end of the
year. It did not disclose pricing.
The hosted applications will include Exchange Server 2007, used for e-mail,
Office SharePoint Server 2007, a content management and collaboration tool,
and Office Live Meeting, for audio and video conferencing over the Web.
Microsoft said a single Web interface can be used to managed those applications,
performing tasks such configuring access for users, tracking support requests
and managing licenses.
New subscription customers will also be able to blend their online software
with on-premise software installed on their own servers.
Microsoft is trying not to alienate existing customers paying for what some
call a pricey insurance plan, called Software Assurance. The plan, for on-premise
software, lets customers obtain Microsoft product upgrades and other incentives
for free. Microsoft is offering Online Services at a discount for those who
pay for Software Assurance.
So far, Microsoft said companies using Online Services include Autodesk, Blockbuster
and Coca-Cola Enterprises.
