Microsoft Office Live

[Tom]

I came across this today - officelive .com

I'd be interested to hear what the guys in the hosting business think of this...

"Microsoft Office Live will provide your company with its own domain name, Web site, and e-mail accounts for free."

"A professional Web site, expertly hosted by Microsoft "

By the looks of things, they will be charging for hosting....

Interesting eh?

Tom

[-DataCenter-]

Thanks.

Had a look at the website. I must say that it looks as if it could be attractive to a lot of small businesses if it does work as a secure online network with database and 'customer, project, and document management tools'.

[Tom]

Would you be concerned about their hosting arrangements? Or do you reckon they have learned from their past mistakes?

Tom

[-DataCenter-]

I'm concerned about everyone's hosting arrangements.

I would certainly not use it personally until a good bit of time and criticism had passed. MS frequntly have to do things a few times to get it right as we all know.

I still think it could be very, very successful.

[Gabe]

It will be succesfull, the Microsoft brand sells, but don't forget that google gave some money for open office ...I feel something coming on ...

[Tony]

Yes, the computing world is moving to web-based apps. Personally, Microsoft's move does not scare me, as we are a low-cost host and they will be operating at the higher end, I'm sure. To those higher-end hosts out there, I don't think they'll be hurt either. Stay true to your core competencies!

Although Google says the rumors that they are putting OpenOffice online are not true, I think that they are indeed true. If you think about it, once Google tries to compete on the desktop, they will lose to Microsoft and other entrenched players - I think Google realizes this. It will be interesting to see what becomes of this OpenOffice play.

[-DataCenter-]

They'll be selling on added value, their name and probably simplicity of use. Any website design is likely to be through templates. Initially, their market will be small businesses who don't understand or want to understand the technical stuff AND all those who have had their fingers burnt with dodgy hosts.

I don't think the plan will work if it is just Office on line, but it does seem to be much more than that. If I were a host in this market I'd be very worried. Even if I were doing well with my current customers, I'd expect the number of new customers to slow significantly. And I would expect to lose current customers gradually if I couldn't match the added features from MS.

[Matt]

Just like you lose customers to 1and1 and GoDaddy, right?

[-DataCenter-]

How many people have heard of 1and1 & GoDaddy?
How much added value do 1and1 & GoDaddy offer?
How much can they afford to spend on advertising?
Do they sell software that nearly everyone uses to which they can add links & advertising for the online version?
Can they get all computer sellers to add adverts & links to each computer sold.
Hosting is a small & immature industry & the big boys in it aren't big enough to be pygmies next to MS.

MS have to get it right to make it work, but if they do they don't really have any significant competition. The only way for small hosts to go in this market will be service, design & settingup & tweaking & personalising websites etc for their customers - or to move to another part of the market (while it lasts). The bigger hosts, selling to bigger businesses are probably OK, so are those who sell web commerce packages (at least at the beginning).

[Tony]

Fear breeds failure. Don't let Microsoft intimidate you. You are grossly over-estimating the impact that MS Live! will have. Remember that this is not 1996 anymore - things have changed, and Microsoft no longer has the power to crush industries. I would be more worried about Google's entrance into the hosting field, and even then I don't think there's too much to worry about.