Microsoft Office 365: What's on tap for big businesses, federal users?

By | April 15, 2011, 8:33am PDT

While Microsoft has begun detailing some of the planned packaging and pricing for its Office 365 suite of cloud-hosted applications, a few details still remain murky.

One of those is whether Microsoft will carry over from its current Business Productivity Online (BPOS) suite the “D” (dedicated) and “F” (federal) SKU options.

I’ve heard from some of my contacts that Microsoft is poised to offer a public beta of Office 365 the week of April 18, in anticipation of its early June launch of the Office 365 suite. So maybe we’ll hear more about the company’s SKU plans next week. Or maybe not….

Check out Office 365 in pictures: 70 slides showing SharePoint Online, Lync Online, Exchange Online and more

Office 365 is Microsoft’s successor to BPOS, its bundle of hosted SharePoint, Lync (unified communications) and Exchange services. It is Microsoft’s head-to-head competitor with Google Apps.

With BPOS, Microsoft currently provides users with a choice of “S” (standard, i.e., mulitenant); “D” (dedicated); and “F” (federal) SKUs. The BPOS-F option is a highly locked-down bundle of Microsoft-hosted SharePoint, Exchange and Communications Server. (“Physical access to those (BPOS Federal) systems is limited by biometric access controls to a small number of individuals who, in compliance with International Traffic in Arms Regulations (ITAR), must be citizens of the United States who have undergone rigorous background checks, including fingerprinting,” according to the Microsoft press release announcing BPOS-F last year.)

When Office 365 ships, those three SKUs may not carry over, from what I’m hearing from some of my contacts.

When I asked the team whether there’d still be S, D and F options with Office 365, I received this rather vague response from a spokesperson:

“There will definitely be an offering for those government organizations that have additional regulatory needs, like ITAR-compliance (included in the FAQ on the Office 365 website), but Office 365 for enterprises works well for most federal, state and local governments, because the services have been certified as compliant with ISO 27001 standards, completed SAS70 Type I and II audits, and achieved the EU Safe Harbor seal. Microsoft has also added controls for helping customers comply with HIPAA (Health Insurance Portability and Accountability Act) and FERPA (Family Educational Rights and Privacy Act).”

So does that mean there will be an Office 365 D offering or not? Your guess is as good as mine. I (kind of) think there will be some kind of F option for Office 365, but again, I am not 100 percent sure.

BPOS-D currently requires a minimum of 5,000 seats and requires an automatic three-year licensing agreement. It offers users more options for customization. BPOS-S has a minimum requirement of five seats and is the version of BPOS that Microsoft targets at SMBs.

Any customer out there care if Microsoft does away with the Dedicated option for Office 365?

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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 Office 365: What's on tap for big businesses, federal users?
dfwekrdfe3701-24353674902965393353664642483588 Updated - 10th Nov
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All the things that inspired security in these services from Google and Microsoft. Sometimes I wonder, if things like 9/11 never happened, would this paranoia level requirement in software service security be so stringent?

I am just saying, you could be born US citizen, raised in the US and christian that teaches Sunday school, it doesn't prevent a person from cultivating evil malicious thoughts. As the in the case of wikileaks, I am sure those leaks came from persons who were in some position of authority with a high level of trust.
I disagree with your assertion that Office 365... wait... what?
@Mr. Dee
Umm people are not being paranoid. The people who were victims of Identity, before September 2001, were in general not practicing smart (safe) computing. People should realize that communications over public networks can be intercepted. Just as anything sent by snail-mail can be intercepted. I have always used prepaid cards for online transactions, if only to prevent fraudulent charges on my normal cards.
Nothing but viruses.
So many Microsoft Office versions to choose from.

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RE: Microsoft Office 365: What's on tap for big businesses, federal users?
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