<IT
WORLD>
Sweet fruits of competition By Martin J
Young
HUA HIN, Thailand - In a timely
response to Google's announcement of its operating
system ambitions last week, Microsoft has
responded with its own salvo by announcing a free
online version of Office 2010. The software
company's popular productivity suite will undergo
a number of improvements for the next edition, but
the big story is that it will offer simplified
online versions of Word, Excel, PowerPoint and
OneNote.
Enhancements to the non-free
desktop version include the ability to embed web
video content into PowerPoint presentations,
advanced editing tools for publishers inWord,
advanced document properties, and full
customizable "ribbons" - or menus.
Office
is one of the most profitable products the company offers
so it stands to reason
that Microsoft would want to stop Google muscling
in by offering an equivalent. Google is already
taking steps towards a web and data domination
plan with its Gmail, its Google Docs and now its
own operating system - Chrome OS, not to mention
practically owning Internet search and the online
advertising revenue market.
This is the
second significant return of fire from Microsoft
in as many months following the launch of its own
search engine, Bing, in June. However, the company
is risking cutting into its profits by offering a
free version of one of its flagship products. The
Office suite made US$9.3 billion in profit from
$14.3 billion in sales during the first three
quarters of its 2009 fiscal year. The outlook for
Office looks strong, though as, according to
research firm Forrester, around 80% of companies
are using it so an online version would be a
welcome move.
Google will not be too
concerned as revenue reports out this week show it
made $5.52 billion in the second quarter. The
company showed a 3% increase in sales despite the
gloomy economic outlook, so it is still full steam
ahead regardless of the recent activity in the
Microsoft camp.
Web-based computing will
become more popular but still has its problems,
users will still be reliant on their Internet
providers and connections to get any work done,
and the privacy issues over storing all of your
data online in the hands of a third-party company
are still a concern to many. Both companies are
escalating their efforts to compete in the shift
towards cloud computing, but those clouds are
still a long way up.
Hardware Industry research this
week indicates that netbook sales are expected to
double this year while notebook shipments will
remain flat. Analysts at DisplaySearch predict
that netbook shipments this year could reach
around 32.7 million units, almost double the 16.4
million of last year. Competitive pricing and
improved hardware have been drawing consumers away
from laptops and towards these smaller, lighter
computers.
The lines defining the two
devices may soon become blurred as the hardware,
graphics capability and screen sizes of netbooks
approaches that of their bigger brothers. The
sales figures are good news for the likes of
Intel, which supplies the Atom processor to drive
the majority of netbooks, and Google, which
recently announced its Chrome OS specifically
designed to run on them. Microsoft has also stated
that it will offer a version of Windows 7 for
netbooks.
Greater China is expected to
account for just under 4 million of the 32.7
million units estimated to ship this year.
Emerging markets across Asia are prime targets for
manufacturers as low-cost computers will always be
in high demand. Apple has missed the boat on the
netbook craze since its lowest-priced laptop is
still around $1,000, whereas a half decent
specification netbook from HP, Asus, Dell or
Fujitsu would cost around $300-$500.
Software This week Microsoft
denied that Windows 7 is virtually finished and
ready for "release to manufacturing" (RTM). "RTM"
is used to indicate that the software has met a
defined quality level and is ready for mass
distribution. The second half of July is the
target that the company expects to release to
manufacturing the much-hyped replacement for the
maligned Vista operating system.
Announcements on the company blog
cautioned people against downloading earlier
builds of Windows 7 from file-sharing websites as
many of these bogus copies contain a malware
payload in the form of an infectious Trojan. The
final release date when the general public will
get their hands on the fully packaged product with
all of its bells and whistles is October 22,
although early versions and upgrades have been on
sale at discount prices in the US and Europe.
If you're waiting for the big release, be
prepared for a slew of teething problems, hardware
compatibility issues, software installation errors
and all of the general delights of a complete
operating system upgrade. Remember the early days
of Windows Vista, XP, 2000, 98 ...
Martin J Young is an Asia Times Online correspondent based in Thailand.
(Copyright 2009 Asia Times Online
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