Microsoft Finally Begins to Answer Google With “Office Live”

Microsoft finally responds to Google’s challenge to its Office monopoly by rolling out a half-measure, “Office Live Workspace”, which allows users to save Excel, Word and other documents online. This is belated but good, and there is still time to get in front of most PC users, only 5% of whom have played with a word-processing document online.  The current offering, which will be launched in a limited beta, still lacks some of the collaboration and browser-based editing features provided by Google Apps and other start-up web app companies like Zoho.  Next step: Adding those features and then figuring out how to compete with Google’s price point — zero — without cannibalising the product that accounts for 31% of its revenue. WSJ

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