Microsoft Corp launches an updated version of its Office software on Wednesday, aiming to keep its grip on the hugely profitable business application market while countering the challenge of free online alternatives from Google Inc.
The world's largest software company is upgrading its popular Word, Excel, Outlook and PowerPoint applications, and rolling out its own online versions to keep up with the new class of mobile, web-connected users that have emerged since the last upgrade in 2006.
Most are expecting the Office franchise -- which Microsoft says has 500 million users -- to retain its dominance in the business world. But Office could be facing the beginning of an erosion of its "must-have" status.
"Every time Microsoft releases a new version of Office, they get a bump up in revenue," said Toan Tran, an analyst at Morningstar. "But how big of an upgrade is this? They might have a harder time getting people to update."
