Microsoft Readies Office in the Cloud

In a move that indicates Microsoft is looking to battle Google Apps in the cloud, Microsoft is now the owner of the domain (click here).

But, if Microsoft is going to going to compete, they will need to move away from the perpetual license business model. Some cannibalization of software sales will be inevitable as customers move to the cloud. Currently, however, Microsoft acknowledges that even the paid web version of Office 2010 will require a locally installed copy of all features to be operational.

In comparison, Google Apps stands-alone but has the ability to integrate with locally installed MS Office and Open Office software. So long as the local-copy is optional, Google Apps will have the advantage.