Microsoft has started beta testing on its new "Office 365" web based solution. "Office 365" wraps up Web-based versions of Word, Excel and other Office applications; the Exchange e-mail system and SharePoint online collaboration technology; and Microsoft's unified communications system, which includes instant messaging, Internet phone and video conferencing.
The "Office 365" package will be available to small businesses on a subscription basis for an estimated $72 per seat per year. Larger companies will have options that range from $24 - $324 per seat per year.
Microsoft's newest challenge goes directly at Google Apps. With early entry into the cloud market, Google would seemingly have the competitive advantage. Microsoft, however, is betting on the use of familiar desktop software to lure customers into the Office 365 world. Microsoft has 40 million paid users of their cloud solution. Google will not quantify their paid user count, instead saying there are 30 million users with "millions of paid users".
Office 365 will move out of beta in 2011.
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