Microsoft testing Office 2007 as a hosted application

Microsoft is testing its suite of office tools for delivery as a hosted application, reports ComputerWorld. The yearlong testing period will help the company to determine when and whether the new Office 2007 will be released to the hosting market. Web hosting companies will then be able to offer the service to their clients, using a technology called "application streaming."

From the ComputerWorld article: "...a streamed version of Office would be stored on a server at a hosting provider or enterprise but delivered bit by bit to users on demand through a local network or the Internet, just as streamed music and video are."

Microsoft's foray into the "Office 2.0" arena comes at a time when the ruling paradigm of desktop software is being challenged. Last month's release of Photoshop as a web service is a good indication that significant effort is directed towards making top software brands run in a browser, or served off the net. There remain obstacles, but with the internet becoming a more and more ubiquitous utility, it seems the idea enjoys popularity.

Google Apps will most likely be the major competitor to Microsoft's hosted Office 2007. It is already established as a service, and an ad-supported version is available for free, although lacking some of the perks of the paid version. Google Apps currently contains a number of web applications replacing traditional office software, including Gmail, Google Calendar, Talk, Docs, Page Creator, and Sites.

Microsoft, on the other hand, has secured a large potential user group, as thousands of web hosting companies are already using Microsoft software on their servers. At this juncture, this editor is unable to predict a clear winner in the hosted office suite arena.