Free Microsoft Office coming 2010

Microsoft has announced that ‘lightweight Web browser versions of Word, PowerPoint, Excel and OneNote’ will be available free of charge through Windows Live in 2010. This is certainly excellent news for the 400 million odd Windows Live subscribers however should Microsoft (MSFT) shareholders be concerned? After all, Microsoft has had significant financial success over the years through the sales of Office software and Operating Systems. Suddenly Windows Operating Systems have a likely serious competitor with Google’s (GOOG) announcement of the release of Google Chrome Operating System in 2010. MS Office is also feeling the ‘heat’ of increased competition again through Google in the form of Google Apps. It’s early days yet however Bing appears to be gaining market share in the Search Engine ‘war’ however Microsoft still hasn’t proven that it is able to make money from a Search Engine.
Microsoft and Google are increasingly offering competing products. This has to be beneficial for consumers however investors in MSFT certainly have a reason to be concerned! The days of high margins on Operating Systems and Office Software looks to be ending.