Microsoft has set a new innovation in cloud computing by introducing a range of products of which Office 365 is to be the hallmark.  The new product will be hosted software for business which is currently available for small scale enterprises, at a price of $6 per user per month. However Office 365 will only include web-based Office software.

According to Microsoft, Office 365 will also be available for midsized and large scale corporation at the cost of $2 per user per month. This cost will only include the cost of basic e-mail; however the package can be increased further to $24 per user per month for a complete Microsoft Office suite. This suite will include the following:

  • Office Professional Plus desktop suite
  • Communications server tools
  • Online versions of the desktop software
  • Voicemail
  • Enterprise social networking
  • Instant messaging,
  • Sharepoint Exchange
  • Web portals
  • Extranets
  • Voice conferencing
  • Web conferencing
  • 24×7 phone support
  • On-premises licenses.

As Office 365 will be based on the cloud concept, it will work independently through multiple devices. Another important feature of the new cloud based product will be to introduce collaborative software with enhanced security features, which will include Microsoft Dynamics CRM.


The initial reviews of the product are being seen in the context of competition against the apps that have been introduced by Apple and Google for business perspectives. With Microsoft’s foray into the cloud computing arena, Microsoft 365 is the true test of the companies’ agility into this area.