By Paula Rooney & Amber Howle,
In an effort to knock out Sun Microsystems' StarPortal initiative, Microsoft is teaming up with Verio, among other Web hosting companies, to offer its popular Office suite on a pay-as-you-go basis over the Internet.
At Fall Internet World from Oct. 6 to Oct. 8, Englewood, Colo.-based Verio will give attendees a sneak preview of its forthcoming "Virtual Office" hosting services, but will also lay out its plans to offer rented software applications, including Microsoft Office, over the Web sometime in 2000, a Verio spokesman said Wednesday.
Small businesses will be able to "rent" Office applications next year, but Verio officials would not be more specific about timing.
"Those businesses that contract with us will have access to those applications on a pay-per-usage basis," said Matt Bell, a spokesman for Verio.
As part of the deal, users will download a componentized version of Office from their browser and pay Verio for the service. The pricing hasn't been determined yet, Bell added.
During the first quarter next year, Verio will offer an interim step, hosting the existing Office 2000 Server Extensions and enabling existing Office 2000 users to easily set up intranets and extranets using the Web-enabled features of Office 2000 in the click of a mouse, Bell said.
One analyst said Microsoft already has the Active X component technology available in Office 2000, but is licensed only for use within a company intranet.
"Making it available externally is mostly an issue of licensing rather than reinventing technology," said Chris LeTocq, an analyst at Dataquest, San Jose, Calif.
"They've been ready to do this for a year and a half. They see ASPs
and ISPs looking at supplying productivity application services [PAS] over the Web, but Microsoft doesn't want it to happen. Office is their cash cow, and disturbing that
business model is low on their priority list."
At least one Microsoft partner familiar with the company's plans said Microsoft is very focused on the ASP model and ensuring that companies adopting that model are doing so atop Microsoft software.
"Bill [Gates] is on a rampage about this," said the partner, who declined to be named.
George Meng, group product manager for Microsoft Office, would not confirm plans with Verio to host Office over the Web, but did say the company is currently working on an application hosting model for the productivity suite.
Nevertheless, he said Microsoft expects strong channel distribution of Office to continue.
"Once Office eventually does get offered over the Web, we see an opportunity for it to be a trial mechanism for people to experience it before purchasing through the reseller channel," Meng said.
He also said VARs and integrators may have opportunities to play in the ASP arena themselves.
"Microsoft is considering all different ways to make Office available as a hosted application through Microsoft as well as through partners," he said.
Microsoft president Steve Ballmer confirmed publicly several weeks ago that Microsoft would host Office over the Internet.
Sun plans to offer its StarPortal PAS to ASPs and ISPs beginning late this year, a Sun spokeswoman said Wednesday.
Try TechWeb's RSS Feed!Lowes seeking Information Security Analyst II in North Wilkesboro, NC
United Nations Foundation seeking Systems Administrator in Washington, DC
World Book seeking Java Technical Lead in Chicago, IL
Advanced Workstations in Education seeking Software Developer in Chester, PA
Silicon Labs seeking Automotive Market Segment Director in Austin, TX
For more great jobs, career-related news, features and services, please visit our Career Center.
TechWeb's FREE e-mail newsletters deliver the news you need to come out on top.
Get definitions for more than 20,000 IT terms.
Editorial and vendor perspectives
