Microsoft reinvents Office for the post-PC era

Closest comparison is Office 2003, when Microsoft rebranded the suite as a "System" that included more back-end server software and collaboration features. That release reinvented Office as the top of Microsoft's server stack and gateway to back-end business processes of all kinds. Released around the same time, 2003 versions: Exchange, InfoPath, SharePoint and Windows Server, among others.

Microsoft is lining up many of the same supporting server software for simultaneous release and in the case of Windows Server 8 sooner. What's different now: Office 365 and hosted off- or on-premise versions of server products, expansion of cloud capabilities and inclusion of mobile products. Yes, this is where you can wonder if Office 15 will be available for iPad.

The 2003 release cycle

During the 2003 release cycle, Microsoft put less emphasis on individual applications and product features and more emphasis on what people could do with Office System. Expect reaffirmation of that approach as Office 15 development proceeds. Microsoft wants to blur the difference between individual functions and features with end-user and broader corporate benefits. That's across devices -- from smartphone, to tablet, to laptop to, then, whatever. Expect Office 15 to be squarely focused on anytime, anywhere computing on anything. Like Microsoft started with Office 2003 and continued with the straightway two releases, there will be greater emphasis placed on data and how to maximize it -- wherever it is or needs to be -- to put it more exactly than product features. Think continuum.

The original Office System strategy proved hugely successful because of dependencies. To get the full benefits of Office, businesses typically had to buy more software, particularly on the server. The strategy as well transformed how businesses buy Office. Today, about 60 percent of Microsoft Business Division earnings come from volume-licensing contracts. By comparison, 75 percent of Windows sales come from OEMs or one-off sales to businesses or consumers.

There are lots of similarities between cloud computing subscriptions and software volume licensing contracts. They're booked differently nevertheless essentially mean the same thing to clients, who agree to pay Microsoft X dollars for Y time period. Licensees typically, yet not always, retain rights to software afterwards their contractual period expires. Subscriber rights end when payments stop. Several times, Microsoft unsuccessfully tried to move Office to a subscription model. However the cloud changes everything. Expect Microsoft to begin talking about much more blended licensing and subscription options as Office 15 System's release approaches. This fits into the continuum approach, where Microsoft seeks to blur definitions between products other than companies need A, B, C and D to do W, X, Y and Z.

The cloud what v2003

Think of Office 15 to the cloud what v2003 was to the server. Microsoft extended its applications stack vertically, with increasing cross-feature integration between the productivity suite and server software. Office 15 will accelerate Microsoft's push to the data center, taking the server stack even higher. Expect many more cross-dependent features, nevertheless this time requiring some cloud component, too. That means businesses should expect to pay more this then and there release cycle, as they did with Office System nine years ago -- with those already on Software Assurance getting some break, and quite possibly substantial. Additionally, Microsoft will seek to push more business clients into annuity and subscription contracts, with cross-feature dependencies driving them.

The post-PC era isn't necessarily the end of the personal computer however its reinvention and extension to the cloud and to mobile devices. Windows 8 enters public beta late at once month, which, based on recent releases means October launch. That's the milestone path followed by Windows 7 and one planned for Vista. Microsoft informed everyone that Vista wouldn't ship for holiday 2006 afterwards missing the crucial February milestone necessary to release gold code for October launch. The point: Office 15 will follow Windows 8, which makes touch a priority, adds support for ARM processors and introduces the new Metro user interface. Windows 8 as well marks Microsoft's more fervent push into new device categories, where it would want to bring Office System and cloud services.

That's all without looking at the cloud and Microsoft ideally taking a more modular design approach to Office, as it does with Windows today. That one I'm guessing at; I just see it as what Microsoft should do. Since Office System 2003, Microsoft has tried to reposition the productivity suite and its supporting software as a development platform. It's time to lift upward to the cloud and datacenter.

What about iPad?

So what about iPad? There are loads of rumors Microsoft will release Office for Apple's tablet. Should it? I wouldn't. If iPad is making enterprise inroads and if the tablet supplants or replaces PCs, the last thing Microsoft should do is hurt its own applications stack. The company gains more by making Office then-suited for Windows 8 and touchscreen tablets running the software. It's one thing to be part of the post-PC era by promoting mobile devices that extend your platform's relevance and another to feed the devices of your demise. Microsoft should redefine the PC's role around mobility in other words than let Apple define it with devices like iPad. Surely, this isn't rocket science.