Microsoft Corporation (MSFT)’s Office Business Could Be in Trouble

Page 1 of 2

Proclaiming the inevitable decline of Microsoft Corporation (NASDAQ:MSFT)‘s Windows business is hardly controversial at this point. Tablets and smartphones have begun to replace traditional PCs for many users, while Microsoft Corporation (NASDAQ:MSFT)’s Windows 8 has, in general, not been received favorably.

Microsoft Corporation (MSFT)

But perhaps Windows isn’t the only business segment Microsoft is in danger of losing. Apple Inc. (NASDAQ:AAPL) announced some changes to its Office competitor (iWork) on Monday, while Google Inc (NASDAQ:GOOG) continues to go after Office with its Docs.

Apple’s iWork: now more like Google Docs

IWork has been around since 2005 but has never come close to Office in terms of popularity. Functionality aside, iWork adoption has likely been limited by the fact that it’s only available on Apple Inc. (NASDAQ:AAPL)’s operating systems.

Given that the overwhelming majority of desktops run Windows, and that tablets are still not a popular medium for traditional work-related activities, iWork has never had the opportunity to directly compete with Office. But that changed on Monday.

Soon iWork will be available as a cloud service, integrated directly with iCloud, and accessible across nearly all operating systems — one needs only a browser to access it.

This puts it on equal footing with Google Inc (NASDAQ:GOOG) Docs, the search engine’s own Office competitor. What’s more, iWork is compatible with Office files, meaning that it could be easily blended into existing work processes.

It hasn’t been announced yet whether or not Apple Inc. (NASDAQ:AAPL) will charge for this new version iWork, or if it will offer superior functionality compared to Office.

Nevertheless, putting it in the cloud (and therefore making it accessible to users of many different operating systems) at least gives it the ability to compete with Office.

Google Docs might be good enough

Like with most of its products, Google Docs has been a work in progress. Features have been added, storage has been expanded. Now, Google is looking to take a piece of the Office market.

Google’s head of enterprise, Amit Singh, told AllThingsD last December that Google Inc (NASDAQ:GOOG) wants Microsoft’s customers. Specifically, Google wants the 90% of Office users that don’t use Office’s most advanced features.

Google still has a lot of work to do in bridging the gap. But Singh is probably right in that many of Office’s customers could eventually survive with Google Docs alone.

This piece, for example, is being written in Google Docs. Its word processing functions are advanced enough for me, and it didn’t cost me a dime. Just five years ago, I would’ve likely been writing in Microsoft Word.

Microsoft isn’t sitting by idly

But Microsoft Corporation (NASDAQ:MSFT) isn’t sitting on its hands. It continues to make significant updates to Office, such as incorporating Yammer, and creating Office 365, a subscription, cloud-based alternative to the traditional Office software installation.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!