A greater threat to Microsoft’s productivity software hegemony is Google Docs and Google Apps. Google Docs is Google’s free set of productivity tools aimed at the individual. You can use Google Docs to create documents, spreadsheets, presentations, drawings and forms.
Google Apps on the other hand, is aimed at the enterprise and offers more tools than Docs, including recently acquired QuickOffice. Google said back in June that over five million businesses were using Google Apps, up from four million in late 2011.
Google Apps are also available on Android and iOS, while Office is only available for the fledgling Windows 8 tablets.
Microsoft has responded to the low-cost Google Apps with a $72/year Office 365, and it is to be seen whether this will be enough to fend off the threat of Google Docs, Google Apps and Open Office.
Is Google Docs a Real Threat to Windows 8?
In summary, the more serious threat to Microsoft is clearly Google Docs and Google Apps. In developing countries also, millions use Open Office quite happily and long-term, Microsoft will have to be careful to respond to these threats appropriately and in timely fashion,
The only thing Microsoft must not do is be complacent. They also have to be decisive and roll out Office on Android and iOS at affordable prices.
The sooner they understand they have no built-in advantage like they did in the old days, the better they will be for it.
Do you think Microsoft faces a threat in productivity apps? If so, how should they respond?
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All anyone has to do, especially people who write articles like these is actually use the sub par software like OpenOffice and Google Docs, use them and use Office 2013 and then understand that there is no threat whatsoever to Microsoft Office.
And after using them Arnold, you can pay thousands of dollars for Office over several years – or millions if you are a large organization – and then realize that there are free alternatives that work almost as well. After all, most users use 10-20% of Word or Excel’s capabilities.
Sometimes “good enough” (vs perfect) is OK for poor people or poor companies as the millions using Open Office and Google Apps will tell you.
I agree on the licensing, one day Microsoft has to do something to bring the cost down. However as we all know, try teaching a user who refuses to learn something besides Excel how to use something else.
When she starts complaining and sending emails to her boss and her bosses boss how IT is impeding her from doing her work, then good ol Excel is back in Business.
I do agree on the licensing, one day Microsoft has to bring that cost down. But organizations still shell out the money because as we all know, Try teaching a user who refuses to learn something besides Microsoft excel how to adapt to something else.
When they start sending emails to their boss and then their bosse’s boss that IT is impeding her from getting her work done. Then good ol Excel is back in business.
I certainly agree with you that the free alternatives may not be right for everyone. But Arnold, think about millions of small businesses who don’t need the heavy lifting and individuals who only occasionally use Word or Excel (especially in BRICs and the Third World).
That alone explains why Office 365 was rolled out hastily – to counter a vastly improved Google Apps. That volume is significant and those countries are where the growth is.
Take a look at this page showing adopters of Google Apps. (http://bit.ly/npaz2y) Yes, I know it’s a typical “best foot forward” page, but many of these customers are not minnows – Air Products, Heinz, tons of universities, News International, The Telegraph and so on.
Its just important that Microsoft does not approach this with the same complacency that lost them smartphones and tablets and Search … you get the point.
And that’s my point – this is the most profitable “pillar” for Microsoft – don’t underestimate the competition.
I do see the point and agree those markets should get targeted. Microsoft would do well looking for their own freelight version of office. They already have office web apps that blows google docs out of the water,