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Microsoft christens its cloud business suite as 'Office 365'; launches beta

By | October 19, 2010, 8:16am PDT

Microsoft is rechristening its Businesss Productivity Online Suite (BPOS) and Live@edu suites as “Office 365″ and is launching a limited beta of the business version of the suite on October 19.

The codename for what some have called BPOS v2 was “Union,” according to my sources. Microsoft was rumored to be changing the final name of the new suite to Union, but that’s not the case, it turns out. Microsoft chose Office 365 to reflect “dependability every day of the year,” according to officials. (The recent BPOS uptime track record has been not quite so dependable, but it’s an aspiration….)

A look at Office 365 (screenshots)

Office 365 is the new name for BPOS, going forward. There will be small-business, mid-size/enterprise, government and educational versions of the product, Microsoft officials said today. Office 365 for Education is the new name for Live@Edu.

Microsoft execs said today that Office 365 will be available starting in 2011. (They won’t say anything more detailed than that.) A few thousand customers in 13 countries will get their hands on the beta starting today. Microsoft also is folding Dynamics CRM Online into the Office 365 suite in some way in 2011, officials said today. Microsoft also is allowing users to add Office Professional Plus, an on-premises version of Office 2010, to its Office 365 bundle.

It’s been known for some time that Microsoft was refreshing its BPOS elements with a number of the features it has delivered (or soon will deliver, in the case of its Lync offering) as part of its “Wave 14″ on-premises software releases. Exchange Online in the new version of BPOS will get features from Exchange Server 2010 Service Pack 1. SharePoint Online will get some of the features — especially the Office Web Apps support — that are part of the SharePoint Server 2010 release. Lync Online will get selected features from the Lync Server 2010 product that Microsoft is expected to release to manufacturing any day now. (The Live Meeting conferencing product, which used to be part of the BPOS bundle, is being subsumed by Lync.)

Microsoft has been telling customers and partners for months that the new version of BPOS was in the pipeline. At TechEd and the Worldwide Partner Conference, the Softies gave attendees information about some the coming features, and promised a beta build of the new BPOS would be out before year-end.

On the promised feature list, in addition to updates to the core products in the suite, were also single sign-on with identity federation; a redesigned User Interface (for the console); More administration and access control; support for new markets and languages; and an enhanced Syndication partner interface. (”Syndication” is Microsoft’s program allowing mostly telco companies, but also some other partners to private-label its BPOS services.) Microsoft officials said to expect some of these features to arrive before the end of 2010, but not to expect all of them to show up until the second half of 2011.

Microsoft officials said Office 365 for users with fewer than 25 employees (which may or may not be is the BPOS Lite offering I wrote about earlier this year) will be available for $6 per user per month. For enterprises and government organizations, (BPOS has been priced at $10 per user per month up until now.) The basic (formerly known as Deskless Worker) offering is $2 per user per month. Office Professional Plus software may be added on a pay-as-you-go basis. For $24 $27 per user per month, users can get Office Professional Plus, the basic Office 365 cloud services.

Those interested in kicking the tires of the limited beta, may sign up on October 19, starting at noon PT at office365.com. That will get you a spot in the beta line, but not the code today (the beta will be expanded gradually).

Other related coverage

Is Microsoft ready to roll out its new BPOS v2 test build?

Live@edu merging with BPOS: Outlook Live v2 on the way?

Microsoft shares (officially) its future BPOS plans

IBM throws its hat into the hosted e-mail ring with Exchange Online competitor

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Mary Jo has covered the tech industry for more than 25 years for a variety of publications and Web sites, and is a frequent guest on radio, TV and podcasts, speaking about all things Microsoft-related. She is the author of Microsoft 2.0: How Microsoft plans to stay relevant in the post-Gates era (John Wiley & Sons, 2008).

Disclosure

Mary-Jo Foley

Freelance journalist/blogger Mary Jo Foley has nothing to disclose. WYSIWYG (what you see is what you get). I do not own Microsoft stock or stock in any of its partners or competitors. I have no business ventures that are sponsored by/funded by Microsoft or any of its partners or competitors.

Biography

Mary-Jo Foley

Mary Jo Foley has covered the tech industry for 25 years for a variety of publications, including ZDNet, eWeek and Baseline. She has kept close tabs on Microsoft strategy, products and technologies for the past 10 years. In the late 1990s, she penned the award-winning "At The Evil Empire" column for ZDNet, and more recently the Microsoft Watch blog for Ziff Davis.

Got a tip? Send her an email with your rants, rumors, tips and tattles. Confidentiality guaranteed.

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RE: Microsoft christens its cloud business suite as 'Office 365'; launches beta
makrekdw87-24353647461810270232220173141352 Updated - 10th Nov
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Wow, they are being much more aggressive at moving businesses into the cloud than I thought they would, and are straddling the desktop-cloud space much more nimbly than I thought they could.

If you want to go all-in with MS, you can. If you want to keep your operations on-site, you can. And you can do it all with MS software, either way!

I'm impressed.
copy of the full MS Office product, and also Windows. These are baby steps, half hearted. And the name is corny. What will it be next year? Ofice366?
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Do you actually have a clue...
Stormbringer_57th 19th Oct 2010
@DonnieBoy ... about what "cloud" means? The exact purpose of a cloud service is to provide cross-platform intergration AND an alternative to a locally installed office suite. Seriously, that amount of Google-shilling is excessive, even for you.

That aside, the name does indeed suck.
installed version of MS Office, and it will not be cross platform, and it will really require MS Office and Windows for everything to work.,
@DonnieBoy

Local hardware is to cheap to not leverage the power of local clients. It is a silly fantasy to think the future is only HTML web clients.
you seem to forget with the performance of Java Script, and being able to automatically use DirectX and OpenGL, cloud applications will be able to take advantage of local hardware too, AND be cross platform, accessed from wherever you are. Web browsers are NOT standing still. HTML5 is like a freight train coming.
@DonnieBoy

HTML 5 A Freight Train?!?! hahaha! HTML 5 doesn't do anything that hasn't been done before in an 8 year old plugin.

Don't get me wrong, open standards are great and much needed in IT, but insinuating that HTML 5 is going to smash everything like a freight train is laughable. It will still be years before HTML 5 is widely adopted and by that time HTML 5 will already be in the dust by other technologies pioneering new innovation.

Standards don't pioneer innovation, they only codify it after the fact.

Sorry, HTML 5 is not your Microsoft smashing savior.
flash, and will enable a wide variety of applications with high performance graphics. You have local storage as well for offline access and to compensate for slow / flaky connections.
@DonnieBoy
Are you replying to me or are you just rambling? You don't seem to be making any counter point to my coment.
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mikefarinha, he can not make any counterpoints as
Mister Spock Updated - 19th Oct 2010
DonnieBoy historiclly has latched onto many a Google products over the years, claiming them to be the end of some offering Microsoft, or some other company, had out, only to watch Google discontinue them as their competitors product where growing in usage.

HTML5 is the last, great hope this gentleman has from Google. Most of the freight cars have derailed, and the HTML5 engine is all he has left.
@DonnieBoy
Do you need Windows? Yes... Can you use Linux? Sure... Apple's OS? Yup... It supports a lot of different browsers.

Do you have to buy Office? No - you can use WebApp versions of Office which comes included in the service...

Sorry - this is kind of a FUD posting...
@DonnieBoy

They may consider calling Office 366 on leap year otherwise it will probably remain Office 365 going forward
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Big brave steps
hakanernnews 19th Oct 2010
Microsoft is making a lot of money through Office sales. Office365 will definitely hurt these sales but in the long run it will be good for them. Cloud is inevitable.
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Small timid baby steps.
DonnieBoy 19th Oct 2010
Still requires MS Office and Windows.
@DonnieBoy How so? The article and the content on MS website says otherwise - especially on the Office front.
the best thing since sliced bread. But, it is really not functional if you do not have MS Office and Windows.
@DonnieBoy
and you're still trolling
@DonnieBoy - seems like you've never actually tried the browser-based online Office suite running in, as you like to point out, Javascript running in non-MS browsers.

You should sign up for a LiveID and go try it out for yourself over on http://office.live.com.

After all, it's free and we all know how much you like free wink

in case you can't be bothered to try, here's a screenshot I took ... just for you!

http://s1123.photobucket.com/albums/l542/de-void/Misc/?action=view¤t=Capture.jpg
@DonnieBoy No it does not. You obviously do not know what you are talking about.
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LOOK! It works on Mac!!!!!
Stark_Industries 19th Oct 2010
@DonnieBoy
Office Web Apps work great on my iMac. No Windows or Office required.
@DonnieBoy

Depending on which version you use you don't need Windows or Office. Watch the videos you will see the guy editing a Word document via Firefox and it saving in sharepoint with no loss of fidelity when it is opened on the Windows Word Client. The exchange web client is awesome.

Seriously no vendor has the desktop / cloud integrated so seamlessly e.g. You local active directory credentials are synced with your cloud credentials.

Awesome. The fact that the desktop portion of the service requires Windows is nothing at all. They offer more in the cloud alone than anyone else does without the Desktop apps.
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Contributr
inclusion of Office Pro
Mary Jo Foley 19th Oct 2010
Hi. Not every version of Office 365 includes a copy of the Office Pro Plus software. Users can opt for that (and pay on a subscription basis) if they want, but they also can opt not to have it. If they choose the latter, they get a Web-based suite of Office-related services. MJ
Hot diggity, after seeing a quick walk through on Microsoft's Channel 9 blog site, this is exactly what I was hoping for in the next generation of Office Live Small Business. It pretty much retains the existing capabilities of OLSB but includes the one power user feature I was hoping for, the ability to publish MS Access database. The thing I want to get more info on is what/if any VOIP options are available. I imagine OLSB will be folded into Office 365 at some point.
@USArcher Doesn't the new Microsoft Office Access 2010 allow you publish databases to a SharePoint server allowing you to do basic editing and input of data.
@USArcher I wouldn't hold your breath on VOIP... Microsoft has to partner closely with Telcos and data providers... Microsoft doesn't want to compete with the hand that feeds them... it's a tough road to hoe. Also, lots of challenges around regional regulations. Sure Skype has found a way around it but it's much to the detriment to relationships with data providers.
I wonder why they didn't call it Microsoft Office Azure? (it's not as if SQL Azure actually runs on Windows Azure anyway).

It is also odd that after removing the "Office" bit from their on-premise server products (i.e. Microsoft Office SharePoint Server 2007 -> Microsoft SharePoint Server & Microsoft Office Communications Server 2007 -> Microsoft Lync Server) that they bundle them, put them in the cloud and name them... "Office"!

Surely Microsoft Office 365 implies a hosted version of Office (Word, Excel) rather than Exchange, SharePoint, Lync, CRM? Sure SharePoint will offer the rather hamstrung Office Apps but that's a long way short of being Office 365!

I'm sure the justification is that the Office brand is strong and easier to remember than BPOS but I don't think many people will make the right associations in the first place.

I think they've got this one wrong. Microsoft Union (or some other "cloud" reference) would have been better.
As a Managed Services Provider and BPOS proponent, we are thrilled with this announcement. I posted an article in response here:

http://www.fullymanaged.com/blog/microsoft-office-365-thoughts.html
Doesn't seem to be much new here. Looks like Microsoft is milking its brands rather than developing new products.
@curph
Nothing New?
* Exchange 2010 capabilities
* Office WebApps
* Lync rebrand and new capabilities
* Folding of LiveMeeting Service into Lync
* A host of offerings that start at $6.00 per user per month for BPOS
* Active Director Synching
* Retirement of BPOS connector
* New Interface
* A LOT MORE NEW STUFF

Sorry - do not know exactly what you are talking about...
@curph

Okay... not quite sure what you are talking about - sounds like you are spreading FUD...

* Lync with new IM interface and new presentation capabilities (retirement of LiveMeeting in the service)
* Mysite capability in SharePoint plus a LOT of additional features from Sharepoint Servers
* Office WebApps
* New offerings that start at $6 per user per month
* Exchange 2010 upgrade with new features and services
* Retirement of BPOS synch tool NOW Active Directory integration
* New Interface and massive interface overhaul
* Public Website creation
* Online Access Database
* Desktop Sharing
* Now starts at $6 per user per month versus $10 per month

Sorry - do not know what you are talking about...
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Why this is a killer technology....
jessiethe3rd 19th Oct 2010
a.) You do NOT need Office - it comes with WebApps which are a light version of Office - you could equate it to GoogleApps but with an interface people are use to and with the native support of Office docs users are use to.

b.) Integration - Across the full stack with ActiveDirectory support and sync... awesome.

c.) Cost effective - there are multiple types of versions which address different usage scenerios... want office as a service? BINGo. Need to address seasonality with on-again off-again? BINGo. Need to integrate with AD? NO PROBLEM. Want to keep on-premise and branch into the cloud for your changing user community? NO ISSUE!
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This is one of those considerations that can get costly if you don't consider when you do your TCO calculations- how much will MS charge for extra storage in case what's included is not generous enough. Also take into consideration if you want to use SharePoint you'll likely need a certified consultant to set up and probably maintain.
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RE: Microsoft christens its cloud business suite as 'Office 365'; launches beta
makrekdw87-24353647461810270232220173141352 Updated - 10th Nov
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