Microsoft puts Office suite in the 'cloud'

SEATTLE -- Microsoft Corp. made its biggest move into the mobile, Internet-accessible world of "cloud" computing Tuesday, taking the wraps off a revamped online version of its hugely profitable Office software suite.

The world's largest software company is heaving its two-decade-old set of applications -- including Outlook email, Excel spreadsheets and SharePoint collaboration tools -- into an online format so that customers can use them on a variety of devices from wherever they can get an Internet connection.

It wants to push back against Google Inc., which has Google Apps -- a Web-only alternative that removes the need for companies to spend time and money on installing software or managing servers.

Chief executive Steve Ballmer presented the offerings -- collectively called Office 365 -- at an event in Manhattan Tuesday, stressing that online versions and built-in conferencing tools can save users money, especially small and medium-sized businesses.

Office 365 has been in beta testing since last autumn.

"While Office 365 does put Microsoft in mortal combat with Google, it is not really an existential threat for Google since Microsoft is essentially validating the model that Google pioneered with Google Apps," said Matt Cain, an analyst at tech research firm Gartner. "I would expect that Office 365 actually heightens interest in Google Apps."

Microsoft said it will charge from $2 per user per month for basic email services to $27 per user per month for advanced offerings, with a standard, small-business package priced at $6 per user per month.

Google charges a flat fee of $50 per user per year for its Google Apps product, which offers email, calendars, word processing and more online.

Microsoft, like Google, will host users' data remotely and maintain all the servers in vast data centers. Unlike Google, it will also allow companies to put their data on dedicated servers should they choose, or keep the data on their own premises.