Microsoft’s Office Web Apps Is “Me Too” To Google Docs –Yet Gives Enterprise Options for Collaboration and Security

This post was collaboratively written on a wiki by Jeremiah Owyang, who maintains a focus on Customer Strategy and Ray Wang, who maintains a focus on Enterprise Strategy. Together, we’re covering the convergence of emerging technology, Ray has cross-posted on his blog.

Summary
Microsoft gets serious about collaboration using the web and it’s office products by offering Microsoft Office Web Apps. On the consumer side, it’s just catching up to Google Docs, Zoho, and whatever collaboration start-up emerges. On the enterprise side, this could give internal teams real-time collaboration tools –and close security gaps through an on-premise solution. Regardless, IT must develop a collaboration strategy or run the risk of being blind-sided by business units developing it without them.

Microsoft Office Now Web-Based
Enterprises seek unified solutions for web-based applications that complement their desktop productivity tools. Today’s tools often do not work seamlessly across on-premise, on-demand, mobile, and disconnected scenarios. The delivery of Microsoft Desktop Apps just under a year after the October 28th, 2008 PDC announcement in LA puts Microsoft back in contention among corporate user who have been actively piloting alternative solutions from Google, Zoho, and others. Microsoft Office Web apps includes web-based versions of Word, Excel, Powerpoint and OneNote. In addition, Microsoft delivers an online document management system with permissions called SkyDrive, which is advertising supported. These set of features are available to both consumers who have Windows Live accounts as well as to enterprises who have purchased the Office Volume License, who can install an on-premise version on internal serves for intranet usage.

Jeremiah’s Take: For the CMO
CMOs should be aware of the broad ranging changes of consumer behavior, but should recognize this is just catch up to Google docs which has beginnings as far back as 2006. Despite this “me too” there’s a few distinguishing points that make this announcement stand out:

  • Gives consumers the option over Google Docs. Consumers and certainly stakeholders in B2B prefer the no-nonsence experience of corporate issued Microsoft office. The upside for Microsoft is the spreadsheets appear to have more features than Google sheets, although some of the advanced functionality of web-based excel is not available. As a result, users will have to use the desktop client to perform advanced features like pivot tables.
  • May have better performance –attracting consumers. Microsoft makes claims its service will be faster than the somewhat slow Google docs products, which we believe as we’ve noticed latency in real-time collaboration in Google Docs. (which we’re using for this blog post)
  • Microsoft’s big footprint will accelerate adoption. A research survey conducted over a year ago suggests that Google Docs was used by just a 1% of the US consumer base, and Microsoft Word had over 51% adoption. Expect Microsoft’s large footprint in enterprise combined with over 375 million users of Hotmail and Live to push these web based apps to the mainstream –expect integration into other MS web products.

Ray’s Take: For the CIO
Enterprises will benefit from a familiar solution that delivers enterprise security and collaboration. For intranet deployments and mobile, there are three key use cases that standout:

  • Secured experience behind the firewall. Microsoft delivers an on-premise install that does not expose corporate data to consumer products such as Google docs.
  • Improved real-time collaboration. Consumer teams can now use these light weight web-based tools for near-real time collaboration. Apparently, this is Microsoft’s first real time collaboration tool, as we know Sharepoint often acts more like an asynchronous DMS and CMS.
  • Lighter mobile footprint. Browser based docs give the mobile warrior less resource limitations on laptops or other mobile devices.

IT Must Develop A Collaboration Strategy –Or Business Units Will Do It Without You
Enterprise IT must develop a collaboration program, as the advent of consumer collaboration tools will quickly outpace ITs ability to play catch up. As employees continue to create collaborative workspace in the public web, data can become mishandled, not accounted for, or orphaned. To avoid these risks, we recommend that:

  1. Enterprises should take inventory of the vast teams using consumer based collaboration tools, evaluate their usage and decide if an enterprise solution should be available for internal collaboration features.
  2. IT leadership shouldn’t shut down the firewall and block third-party collaboration tools, as work is often being done at the edges of the company with business units working with partners, customers, and prospects. Instead, focus on providing secure tools within the enterprise for collaboration, then roll-out proper awareness campaigns, training, and ongoing support for company supported technologies.
  3. IT departments should be proactive resources to business units and provide them with the right tools, training, and resources. IT departments that are reactive or clamp down on business units needs for collaboration will find employees finding work-arounds on consumer collaboration tools.
  4. Enterprises will want to reevaluate how Microsoft Web Apps work within existing volume licensing agreements and enterprise agreements, especially as many have considered alternatives during contract negotiations.

Below are screenshots provided by Microsoft to us of the web-based applications: Word, Powerpoint, OneNote and Excel. It’s not clear if the infamous “Clippy 2.0” will re-emerge –we hope not.

Microsoft Word Web App Microsoft PowerPoint Web App Microsoft OneNote Web App Microsoft Excel Web App

Silicon valley based Altimeter Group is a strategy consulting firm focused on providing companies with a pragmatic approach to emerging technologies..

  • http://blog.jazzper.se Jazzper

    It was only a matter of time, I guess. But it has been a long time, amazingly too long until it happened.

  • http://www.web-strategist.com/blog/ jeremiah_owyang

    Also, this will be rolled out to select test users first –this isn’t a mainstream rollout. I’ll give it a test drive once I receive access and report back findings.

  • http://www.web-strategist.com/blog/ jeremiah_owyang

    Jazzper

    Of all times for Microsoft to launch this no-cost product to the market, it’s at the bottom of the recession. Although slow, the timing for this launch couldn’t have been better.

    Consumers may get hooked on this free web based version, then choose to upgrade to office later –think of this as a free appetizer.

  • http://www.conexion-seo.com.mx Alex Angelico

    “Google Docs was used by just a 1% of the US consumer base”

    This line says it all, nobody uses web based application if a local application is available.
    This is like the VideoPhone, it looks like a great idea, but nobody uses it.
    All the companies are “pushing” the users to SAAS, but is slow, buggy and the timeout are a common thing.

    Regards
    Alex Angelico

  • http://www.web-strategist.com/blog/ jeremiah_owyang

    Alex, do note that report I referenced is a year old. I’m hoping someone has more updated info.

    The real question is, to your point, is can browsers support this resource hogging web apps?

  • http://www.twitter.com/microsoft sandra leduc

    background from MSFT on the office web apps preview: No clippy 2.0 app plans revealed, but info on gen availability, skydrive integration, roadmap: http://bit.ly/2z4fSP

  • http://www.web-strategist.com/blog/ jeremiah_owyang

    Thanks Sandra (from Microsoft) I actually saw that link and put in the summary earlier.

  • http://www.myspace.com/fenbi Fenbi

    I saw you quoted in the WSJ the other day, nice work! When are you heading back to Portland, OR?

  • http://www.facebook.com/officelive Andy

    Hey Jeremiah,

    Awesome post! For more information on Web Apps check out the Office Live page on Facebook at http://www.facebook.com/officelive

    Cheers,
    Andy
    MSFT Offive Live Outreach Team

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  • http://twitter.com/tenaciousJk Jake

    Now if they embrace more than just IE… was there any discussion of cross-browser compatibility?

  • http://www.web-strategist.com/blog/ jeremiah_owyang

    Andy, of the MS team

    Interesting marketing effort on Facebook. What would really be powerful is if you actually were able to extend collaboration tools IN Facebook. Or, vice versa, allow people to share documents with their Facebook, and allow FB connect to work with SkyDrive.

    Jake, I was told IE 7, Firefox, and Safari are supported, but not yet Chrome –ahem, go figure.

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  • http://www.wirearchy.com Jon Husband

    IT Must Develop A Collaboration Strategy –Or Business Units Will Do It Without You
    Enterprise IT must develop a collaboration program, as the advent of consumer collaboration tools will quickly outpace ITs ability to play catch up. As employees continue to create collaborative workspace in the public web, data can become mishandled, not accounted for, or orphaned.

    And this too can be crowdsourced, developed using participative work design principles, done via mass collaboration .. call it what you will.

    In that way you will have a good sense of the needs of various decentralized cells as well as the organizational / enterprise stewardship perspective.

    And I say “stewardship” because I think that’s the mindset shift with IT that needs to occur .. from control and imposed models to facilitation based on two-way (or more, if you include users and clients of the outputs from processes) dialogue about what works best or most easily.

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