OCTOBER 28, 2008, 1:11 P.M. ET

Microsoft Takes Wraps Off Windows 7
Software Giant Plans Free Web-Based Version of Office Programs

By NICK WINGFIELD
Wall Street Journal

  http://online.wsj.com/article/SB122521085638276479.html


LOS ANGELES – Microsoft Corp. on Tuesday provided the most complete 
demonstration yet of its upcoming Windows 7 operating system and gave 
programmers an early test version of the software.

The Redmond, Wash., company also said it will make new versions of its 
Office suite of productivity applications that run inside Web browsers 
available for free over the Web, a move to counter efforts by Google Inc. 
and others to encroach on Microsoft's turf with free word processing, 
spreadsheet and other programs.

At a company technical conference here, Microsoft said Windows 7 will come 
with a number of improvements, including a feature called libraries that 
will give consumers a way to easily access in one location music, videos, 
photos and other documents that are located on many different storage 
devices, whether other PCs connected to a home network or removable USB drives.

Another feature called homegroup will make it easier for users with, say, a 
laptop to move their machine between office, home and other locations. The 
feature will automatically configure the laptop, for example, to work with 
a local printer so users don't have to manually adjust their printer settings.

Microsoft has said that it expects to ship Windows 7 for consumers by 
January 2010.

Microsoft's move to make Web-versions of its Office suite, including Word, 
Excel and PowerPoint, for free online represents a gamble that it can 
expand its audience for the software without cannibalizing one of the 
company's biggest cash cows.

Microsoft Senior Vice President Chris Capossela said he doesn't believe 
people will choose to use the free online version of the software instead 
of buying the software and installing it locally on their PCs. That's in 
part because the online versions won't be as responsive for large, complex 
files – for example, Word documents with lots of pages of text and photos.

Instead, Mr. Capossela says Microsoft sees the online Office as an 
opportunity make at least some revenue, through advertising, from consumers 
who wouldn't otherwise purchase the software. Earlier this year, Microsoft 
made an online version of Office available, but it only allowed users to 
view Office files. The new version will also allow users to edit and 
compose files.

"I don't see it as a defensive move," said Mr. Capossela. "We see as 
opportunity to grow our business."


=================================================
George Antunes                    Voice (713) 743-3923
Associate Professor               Fax   (713) 743-3927
Political Science                    Internet: antunes at uh dot edu
University of Houston
Houston, TX 77204-3011         

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