In an attempt to beat Google (NASDAQ: GOOG) Apps at its own game, Microsoft (NASDAQ: MSFT) this week repackaged its software-as-a-service offerings--including Office and the online versions of SharePoint, Exchange and Lync--into a suite called Office 365. By using the new package of cloud-based software, customers can avoid hardware and deployment costs, access mobile docs with devices that support ActiveSync, and leave the patching and updating to Microsoft.

Office 365 should "eliminate the confusing array of Office-related offerings that Microsoft currently has, including Business Productivity Online Suite, Microsoft Office Live Small Business and Live@edu," writes Dave Methvin in a post at InformationWeek. "Microsoft is finally leveraging one of its best brand names, not hiding it behind a train of confusing buzzwords."

However, Office 365, at a minimum fee of $6 per user per month, could end up being costlier for some businesses in the long run, he writes. Under the traditional license model, the longer a company uses the software, the less expensive it becomes, falling well below the $6 fee if used long enough. "That's quite a cost increase, although it doesn't require the up-front purchase like Office 2003 did so it won't seem quite as painful," Methvin writes. "The business does, of course, get a more modern and powerful piece of software and services as well, but these may be things they don't need or that overlap with other services the company already purchases.

What's more, Office 365 could end up being quite a bit pricier than its rival, Google Apps, notes Klint Finley at ReadWriteEnterprise. "It seems like a tough sell, even for the Microsoft brand, when Google Apps costs $50 per-year, per-user and QuickOffice sells for no more than $20 per user," Finley writes, adding that Microsoft does offer more features than Google Apps.

For more:
- see Dave Methvin's post at InformationWeek
- see Klint Finley's post at ReadWriteEnterprise

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