No CD needed: Taking the office to the Web

'Software as a service'
Last fall, as part of a survey about Microsoft Office 2007 and Microsoft Office SharePointServer 2007, research firm IDC gauged interest by business, government and education professionals in what is becoming known as “software as a service,” which includes online-based productivity programs.

While nearly 97 percent of the respondents said their companies are using a version of Microsoft Office, IDC noted a growing number of companies also using open source desktop suites and Web-based tools, including OpenOffice, org, Lotus Symphony, Sun StarOffice, Google, Zoho and ThinkFree.

“Virtually all of those using Web-based tools are also using a desktop productivity suite,” IDC said in its report. “This supports our view that Web-based tools won’t replace desktop editing any time soon, but rather are complementary and add value by enabling document sharing.”

Melissa Webster, an IDC vice president who authored the study, said that “from an enterprise perspective, online productivity applications aren’t ready to replace the server world that we’ve lived with for a long, long time.

“But for small and medium businesses, it’s very attractive to look at a hosted server, and to not pay for software, particularly if you don’t do a lot of complex work in a document and don’t have very demanding needs.”

IBM is testing an online productivity suite, Lotus Symphony, which includes a spreadsheet program.

While security is an issue, so is records management. Webster said many businesses and private and public agencies need to maintain electronic records, including e-mails, for up to seven years, and sometimes longer.

Companies “need pretty rich functionality these days for content and records management, so the question is, that document you authored using that online collaboration tool — where did it go? And who’s keeping track of when it needs to be destroyed and when it needs to be retained?” she said.

Draw for home, student users
But for home users or students, online software, with its low- to no-cost approach and its collaborative aspects, may have more appeal.

Young said many people already are comfortable with the notion of Web-based software because they’re using Web-based e-mail and calendar programs by companies like Google and Microsoft.

“When we talk about consumers, I think the movement toward software as a service is inevitable, and is moving quite rapidly,” he said.

“One of the most difficult obstacles to getting people to use software is getting it onto the computer. Software as a service really solves that problem,” he said. “They don’t have to install software, so they don’t need to be technologically savvy. They just have to point their Web browser at an application and start using it.”

Vegesna, of ZoHo, which released its first online program in 2005, said the time is right for online software.

“You used to pay $4,000 for a laptop or a computer, and paying $400 to $500 for an office suite made sense,” he said. “Now, you get a laptop or desktop for $400 or $500. It doesn’t make any sense to pay $400 or $500 for an office suite.”

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