Microsoft’s Office in the cloud takes on Google

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Microsoft’s Office in the cloud takes on Google

Microsoft on Tuesday started selling Office 365, a cloud subscription version of Office that starts at $6 per user a month that targets small businesses.

By Sharon Pian Chan

Seattle Times technology reporter

Enlarge this photo/ GETTY IMAGES

In this photo from Microsoft, CEO Steve Ballmer launches cloud-based Microsoft Office 365 on Tuesday in New York City. Office 365 is targeted at small and midsize businesses.

Even though its media event was in New York, Microsoft turned its sights to Main Street instead of Wall Street on Tuesday as it rolled out a service that targets florists, cleaning services and other small companies with a handful of workers.

Microsoft started selling Office 365, a cloud subscription version of Office that starts at $6 per user a month.

Calling the new service “where Office meets the cloud,” Chief Executive Steve Ballmer said at the event, broadcast online, “We believe that the best collaboration technology has to be available to all business, from massive global enterprises with thousands of workers to feisty startups with just a couple of employees.”

Office 365 will compete directly with Google Apps and Docs, which Google sells to businesses for $50 per user per year.

It’s a significant step for a company that has long relied on an army of IT service firms to upgrade and maintain software, back up files and patch security holes for businesses.

Office 365, now available in 40 countries, is a package of Microsoft Web software that includes Outlook Exchange email, SharePoint collaboration and Lync unified communications, as well as Word, Excel, PowerPoint and OneNote. It comes with 25 gigabytes of storage per user.

Businesses will use Office 365 through a Web browser. They can also opt for a regular version of Office 2010 that works with the Web service.

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