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Is SaaS Threatening MS Office?

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The ripples continue from Capgemini's decision to support Google Apps a few weeks back. Last Thursday, Rhys Blakely of UK-based Times Online issued an interesting report on the increasing competition to MS Office from IBM, Google, and Yahoo. The three companies appear to have full intentions of targeting MS Office's position as the market leader in office suites.

Blakely quotes Tom Austin of Gartner as saying, "This constitutes a real threat to Microsoftas business model. Eventually, it will have to switch from limited-use licenses to software as a service. That will require a fundamental re-engineering.a More here.

Eric Knorr of InfoWorld had a different take altogether. Musing on Microsoft's "eery" silence about its increasing competition from SaaS desktops, Knorr wondered if Redmond might have a secret project in the works that it will unveil in the near future.

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