Microsoft to Fight Google Apps with Web-Streamed Office

No doubt concerned over defections by smaller businesses and end users to Google Apps, Microsoft is modifying its license for Office 2007 in such a way that Web hosting service providers will be able to stream Microsoft Office for delivery through a Software-as-a-Service (SaaS) model.

While Microsoft hasn't announced this yet (it is expected to make the announcement during its weeklong Microsoft Management Summit show in Las Vegas next week), solution providers and partners such as Endeavors Technologies have already announced it, as in this press release.

In the press release, Peter Bondar, Endeavors CEO said:

"We’ve anticipated this change and are pleased that Microsoft now has a date for allowing service providers to stream Microsoft Office. We have completed proof of concept programs with a number of providers and have been waiting for the amended SPLA program to roll out new services. Through our partnerships with Partner Advantage and others, we are poised to take advantage of the new business opportunities on day one. We applaud Microsoft in taking this bold step."

While of course this will involve some sort of subscription model, perhaps on the level of the enterprise version of Google Apps, it should not be confused with the earlier subscription beta code-named "Albany" which I wrote about. That combines a number of packages including Windows Live OneCare with Office and isn't streamed.

It should be noted that Microsoft was just a tad bit upset in February when Fasthosts began streaming Office for £4.99 per month, so this is a bit of a reversal for them.