Microsoft brings cloud version of Office apps to India

Microsoft on Wednesday launched Office 365, a cloud version of its popular Office offerings, aimed to enable enterprises in the country to use the software on a pay-per-use model. This the first time customers here can avail of Microsoft Office — including Word, Excel, PowerPoint, email and other software — on a subscription basis off the cloud.

The software giant made the commercial launch globally from Tuesday. The service will be available in 40 countries. Microsoft plans to charge $2 (for basic e-mail) to $27 per user per month for Office 365, depending on what's included.

SaaS or “on-demand software,” is a model in which software and its associated data are hosted centrally (typically in the cloud), and accessed using a web browser over the Internet. Cloud computing facilitates sharing of technological resources, software and digital information. Since the technology is Internet-based, data and solutions can be accessed from anywhere using a browser. It is this market Microsoft is eyeing with the new product.

According to Zinnov Consulting, the Indian SaaS market is estimated at $66 million yearly Rs 300 crore) and growing at a compounded annual rate of 58 per cent. Office 365 will compete directly with Google Apps, which Google sells for $50 per user per year. Google Apps is the subscription version of Google Docs, which the search company sells to small businesses, governments and large corporations.