Google (GOOG) has been offering spreadsheet, word processing, and other desktop software with data stored on its servers for some time. The Microsoft (MSFT) model for its OS and Office software is that the applications are downloaded to the PC and all data in the apps resides on the PC.
According to FT.com, "The most likely first step will be to let Office users share documents and spreadsheets they have created on their PCs over the web, according to analysts" Google apps already do this. Speculation is that Microsoft may have the first of these functions in the field in a year but that it could be three years before a fully-features version of "Office online" is available.
It may be Microsoft’s belief that enterprise users are not keen to access applications over the internet, but there is no concrete evidence that the view is entirely true. Google is not setting up internet based applications because it has nothing better to do.
One thing that is obvious is that Microsoft’s response to Google online app effort is slow and measured. That could be a significant mistake. Redmond should be prepared to offer the current versions of its software to those who want the application run strictly from the PC and an online version for subscribers who find that configuration more useful.
That is why they are called "custom"ers.
Douglas A. McIntyre
Top Gaining Stocks
Top Losing Stocks