Microsoft drawing up final plans for Web-based business software

01 Nov 2006
00:00

(Associated Press via NewsEdge) Microsoft is preparing to officially release software that helps small companies do things like build a Web site and maintain business contacts, and plans to link the product to its platform for selling online advertising.

Microsoft said it will officially release Office Live in the US November 15, and simultaneously launch test versions of the software in France, Germany, Japan and the UK.

Office Live, which has been available to US companies in test form for more than 8 months, is one element of Microsoft's major push to offer more Web-based products so it can compete with companies such as Google and Salesforce.com.

Microsoft, which makes most of its money selling desktop-bound software such as the Windows operating system and Office business suite, is feeling increased pressure from companies that offer more advanced or cheaper tools online.

A free, ad-supported version of Office Live will give very small businesses the tools to create a Web site with a company domain name, plus 25 company-branded email accounts. Microsoft will charge $19.95 or $39.95 per month for versions with more options for managing contacts and other business tasks.

Redmond, Washington-based Microsoft said about 160,000 small companies have used the test version of Office Live.

All the versions also will include Microsoft Office Live adManager Beta, which small companies can use to buy ads that run alongside the regular results from Microsoft's Web search engine, Live Search.

Baris Cetinok, director of product management for Office Live, said Microsoft is hoping to cash in on small companies' sales and marketing spending. Microsoft also is likely trying to gain traction for its online advertising sales platform, adCenter.

© 2006 The Associated Press

© 2006 Dialog, a Thomson business. All rights reserved

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