Microsoft Announces Name, Pricing for Subscription Office

This is one important piece of the Microsoft strategy to integrate Software-as-a-Service as part of it Internet strategy. See, http://atomai.blogspot.com/2008/06/internet-business-models-and-analytics.html; and http://atomai.blogspot.com/2008/06/delivering-software-as-service.html. The price will need to be adjusted to an Internet model of less than $50, it should be on a month-to-month basis without limited restrictions, and it should incorporate Microsoft Analysis Services in order to be competitive. See, http://atomai.blogspot.com/2008/06/business-analytics-and-software-as.html.

On the other hand, it shows that Microsoft is aware of the basic components to have a sucessfull Internet strategy and the steps that it can take to make those changes. The failed adquisition of Yahoo would have made it easier for Micrsosoft in terms of the change management that need to occurr for them to make these changes. Yahoo already has an Internet business and culture that could more easily adapt to these type of changes than the Microsoft propietary software business culture.

Also, Microsoft adquistion of semantic search engine Powerset shows the understanding by Microsoft of the importance of Internet "search speed" as part of its strategy.