The popular Google Apps set of business tools will soon be experiencing a previously foreign problem: direct outside competition.
According to the Wall Street Journal, Microsoft has launched Office 365, a service designed to court small- and medium-sized businesses—many of which have considered or switched over to Google Apps in the past several years.
Google Apps offers a set of user-friendly, web-based applications for businesses, and smaller companies often take advantage of the easy integration and low monthly prices Google charges.
The search giant has long been in the position of siphoning business away from Microsoft, whose Windows operating system and Office software are used by more than one billion people worldwide, according to Microsoft. Smaller businesses have been reluctant, especially in tough economic times, to install a number of Microsoft's server programs, since the cost of installation and upkeep can strain a tight budget.
Microsoft 365 offers customers a setup that includes traditional Office programs, either online or via an installed product, as well as productivity applications to rival Google's.
"We see this as a super-exiting way to grow our business," said Kurt DelBene, president of Microsoft's Office division, adding that the company hopes the new product will encourage businesses running older versions of Office to update.
