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Google and Apple have also locked in the office software market, which will ultimately be a headache for Microsoft. However, at least for now, Office looks good.
Microsoft Brings Office Software to the Cloud In the past two years, Microsoft has transformed Office software from a stand-alone software suite to a cloud-based service. In the past, Microsoft released regular updates of Office software every few years, and hoped that enterprises and consumers would pay hundreds of dollars to upgrade. However, Microsoft now wants customers to register. Users only need to pay an annual fee to get Office 365, which is the cloud version of Microsoft Office software.
Obviously, this regular, repeated income is good for Microsoft. In September, Microsoft had said that Office 365 is expected to bring $1.5 billion in revenue to the company each year. In addition, this is also beneficial to Microsoft's customers, millions of users have already converted from buying Office software to registered users.
Google wants 90% of the Microsoft market
Given the "consumers have free alternatives", the popularity of Microsoft Office software among consumers is shocking. Google Inc. provides cloud applications to anyone with a Gmail account. Although Google Docs, Google Sheets, and Google Slides may not be as powerful as Microsoft Word, Excel, and PowerPoint, they should be able to meet the needs of most users.
Amit Singer, president of Google Enterprise, said that Google believes he can win 90% of the Office market. Last year, he said in an interview with the US technology blogger AllThingsD that while Google’s similar products may not be as powerful as Office, they should be sufficient for most users. Google Apps is not free for businesses, but its cost is lower than that of Office software - Google receives $5 a month, and Microsoft's Office 365 costs $12.5 to $20 per month, depending on the size of the company.
Google has already achieved some success in its expansion into the enterprise. Earlier this month, Google signed an agreement to sell Google Apps to global appliance giant Whirlpool. Last week, Google received a US Department of Defense contract. Apple provided Office Competitive Software iWork for free.
Apple's iWork has not won the favor of companies like Google Apps, but it is an attractive alternative to Apple believers (mostly consumers, and perhaps some corporate users). Consumers can get free iWork just by buying a new Apple product—iPhone, iPod, or Mac. Like Google Apps, Apple’s iWork may not be as good as Office, but it is not easy to beat.
But if Apple's iWork will affect Microsoft's Office, then this will be because of the iPad. Although Microsoft has brought Office software to Apple's iPhone, it has not yet released such a version for Apple's tablet. Microsoft CEO Steve Ballmer has already said that the iPad version of Office is already in the preparation phase, but it gave Apple a great opportunity during the period before it was released. Most Fortune 500 companies use Apple Tablet PCs. iWork, the standard business office software for these tablets, may end up threatening Microsoft’s market share.
Forget Windows: Office is the pillar In recent months, the steady decline of Microsoft's operating system may have reached the headlines of major newspapers and magazines, but Microsoft's pillar is Office. For Microsoft, Office is much more important than Windows. The former has brought more revenue and profits to Microsoft in recent quarters.
Both Google Inc. and Apple Inc. have taken actions against Microsoft's market - Google has targeted business users as its target market for low-cost Google Apps, and Apple has used personal and tablet users as its free iWork target market. However, at least for now, Microsoft's Office software looks quite good.
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