Microsoft are offering Office 365 as a public beta, to begin real-world testing of its cloud-based Office software. This cloud version of Microsoft’s popular productivity suite will be available to trial in 38 countries, with one version available for small businesses and another for enterprises.
Microsoft are seeking to simplify business connectivity and collaboration with Office 365, through features like document sharing, email, online meetings, and public websites. In many ways, Office 365 will be direct competition to Google Apps, although many commentators are calling this Microsoft’s offering ‘too little, too late’.
“Microsoft desperately needs a comprehensive cloud-based strategy to fend off competition from Google and other cloud-based vendors. Office 365 is trying to fill that gap,” said Azita Arvani, principal of the Arvani Group. “Structurally speaking, Office 365 seems to include a decent set of components, including Exchange, Office Web apps, SharePoint, IM and Web conferencing. The reported pricing seems to be competitive too.”
“The biggest challenge is timing. Office 365 is something that Microsoft should have had a few years ago,” said Arvani. “Google Apps has been a product for a while now. Yet, Office 365 is still not released yet. It has just entered the public beta. On the performance side, it will be interesting to see how Office Web apps can perform in the cloud version. The original Office apps are designed for desktop usage.”

The fundamental difference between regular Office and Office 365 is the fact that you can access the later from virtually anywhere. Because information is stored in the cloud, your data and that of your colleagues is not tied down to any particular computer or device. Cloud based services like this normally utilise a different business model than that used with desktop applications, and Office 365 is no different in this regard.
Different subscription plans will be available for Office 365, with US$6 per user per month for smaller companies with less than 25 employees and additional suite components available for larger companies for US$24 per person per month.