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By admin, October 8, 2009

Microsoft has decided to release the Home and Student editions of Microsoft Office 2010 without Office Web Apps. It earlier seemed a little absurd on Microsoft’s part but when we looked at the same thing with a different perspective, the decision couldn’t be better than this, both for Microsoft and end consumers. Here’s how..

Microsoft is employing its own cloud service, SkyDrive to facilitate Office Web Apps to end consumers. Now, Microsoft wants to facilitate a free web based office application suite (to kill Google Docs, of course) and simultaneously wants to keep the revenues flowing from the sales of desktop Office application suite as well.

Possible Solution ?

Striking right balance between desktop and web based applications and tapping the revenues from both the ends.

Case I

If somebody is not a buyer of Desktop Office application suite, he can still use Office applications online using a Windows Live ID, for no charges at all. In this case, Microsoft would keep the revenues flowing by monetizing this audience with online advertisements.

Case II

If somebody buys Home/Student edition of MS Office 2010 then the desktop application suite would be cheaper to consumers. The same consumer can still use the Office web apps using Windows Live ID. In this case, Microsoft loses out few bucks on every Home/Student edition of Office 2010(as it’s cheaper than Standard and Professional Plus editions) but makes up by monetizing these customers through advertisements when these users use Office Web apps through Windows Live ID.

Case III

If somebody buys Standard/Professional edition of Office 2010 then Microsoft gets the full benefit from every such sale and need not monetize these customers through advertisements. Hence, Microsoft offers Office web apps via SkyDrive account (No advertisements) to Standard/Professional edition buyers of Office 2010.

In all the above cases, Microsoft gets to have its revenues flowing and consumers also get both the utilities(desktop and web based), one way or the other.