Will Microsoft Define Office Work One More Time

Microsoft first showed me Office 12 (now renamed Office 2007), under NDA in June, 2006.  My reaction was completely divided.  On the one hand, I was impressed by the new and quite engaging interface Microsoft’s UI designers proposed.  On the other hand, I couldn’t imagine that a company with 300 million (!)users was embarking on a plan to launch an upgrade product with an entirely new interface.

Over the summer I spent a lot of time thinking about it.  Obviously, professionals who spent a lot of time with Word (or any of the other Office applications) could learn most of the basics of the new interface in a few hours.  But (enormous but) someone would have to tell them or Microsoft and its customers would have enormous help desk costs  getting users moved from their prior Office product to Office 2007. 

The Question Is:  Is This An Upgrade Or A New Decision?

Some users were going to need training and that was going to open Pandora’s box, I thought. 

When a company is firmly in place as the market owner (as Microsoft is with its Office Suite, with 93% of the business market in the U.S. and significant shares elsewhere, it’s really important for customers to think of advances in the product to look like upgrades to something customers are already committed to.  That makes it easy to decide to keep using the same product.

If a vendor replaces a favorite existing product with something noticeably “new,” the user may view this as a new decision.  New decisions frequently signal the user to look around and see what other choices might be available.  Microsoft might think that there aren’t any other choices so it doesn’t matter.

What Are The Alternatives?

I was thinking that there were really two very different issues here:

  1. There are other Office Suites.  Corel keeps enhancing the WordPerfect Office Suite and it’s actually gaining small bits of market share.  It’s less expensive and if customers, especially in the SMB, education, and government market decided to look around before deciding to re-up with Microsoft they might nice WordPerfect.  There are two other kinds of choices.  One is to choose an Open Source solution like Open Office; it’s been improved nicely over time (and remember this doesn’t necessarily  mean using Linux – OpenOffice comes in the Windows flavor, too).  Or users could explore an on-line SaaS version of office function like HyperOffice.  (www.HyperOffice.com). This would be particularly appealing to small businesses (low cash outlay, pay as your go, as well as to companies that have users on the road since everything is available from a browser anywhere.

  2. Philosophically, however, there’s a much bigger question.  Companies might choose to see what their users actually do.  One consulting firm in Europe does desktop studies and reliably finds that most users spend most of their time in the browser doing email, browsing the web for information, and interacting with a line of business (LOB) application.  That doesn’t leave them much time to actually use the features in an Office suite.  We suspect some companies may figure this out and start giving many users a simpler environment, based on a portal interface, and provide office suite function on an as needed basis.  That will probably mean continuing to buy office suites for some users and using on demand office software for the occasional needs of the rest.  Another SaaS application, of course.

Microsoft has tried to make Office 2007 too attractive to pass up.  In addition to new features in the suite itself and the new interface, it also acts as the foundation for collaboration and other higher function applications that involve Microsoft servers and services.  The new interface includes hundreds of built-in templates, allowing users to achieve professional graphic looks for their documents, spreadsheets, and presentations without investing the time to learn how to do it – or just the time to make it happen.

Microsoft also makes it really easy for customers on subscription with Microsoft to get the software.  It simply becomes available at no additional charge to the subscribing organization.  It remains to be seen whether these organizations will vote for the new features or feel that the cost of managing a migration, especially one which requires additional training and support, is worth the expenditure of organizational resources.  We’ll be sending you a survey shortly about this, looking for some insights.

 

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