Saturday, March 14, 2009

Microsoft Office 14 on-line to include banners


A whole new playground for advertisers is probably going to open up in 2010. Microsoft's upcoming Office package (version 14) will be available as a bundle of offline applications just as we know it, but there will be an on-line ("cloud computing") version as well.

It seems that the on-line version will be available free for everyone and supported by ads. In this move, Microsoft is in my opinion trying to secure the dominant position of their office package by making it available for anyone anywhere. At the same time, Microsoft is likely going to re-emerge as an important advertising channel, thus fighting Google on two fronts.

The reaction of consumers is hard to predict, could be positive if the level of aggression of ads is controled, so that they do not disturb users concentrating on work. Microsoft also should not forget that Google is offering their package free of advertising. Anyway, Microsoft's decission to try out a new revenue model hints at being sick of fighting software pirates. Moreover, from ad-supported to free and free of ads is just one step, as we've seen in many cases.

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