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Jul. 31, 2007 at 8:43am Eastern by Barry Schwartz
Microsoft Works To Be Ad Funded
Microsoft Works to become a free, ad-funded product from ZDNet reports that the next version of the Microsoft Works office suite is to be ad funded.
Microsoft Works 9.0 isn't yet available, and it's not clear whether in addition to ads, a web-hosted version would also be offered. If a web hosted version was provided, then it would compete directly with Google Docs & Spreadsheets.
Microsoft And Google Moving More Deeply Into Each Others' Businesses from Greg Sterling this past Friday details Microsoft's strategy to develop web-enabled applications and more ad-based products.
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By Barry Schwartz
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See Related Stories In: Microsoft: Business Issues
That's interesting. At the Netimperative Directors Dinner on Search last month, which had a pretty good turn out from the main UK agencies and Chris Salmanpour from MSN speaking, he got really heckled about what MSN could do to increase traffic volumes. Everyone agreed that the discussion had nothing to do with the platform or commissions and everthing to do with access to good quality traffic. I chipped in that the only option I could forsee for Microsoft was to release products for free, funded by advertising revenues. I even went as far as saying consumer versions of Vista should be free and advert funded as that would quarantee access to traffic and make their service viable. If you think about it logically there is almost no other strategic play for them to make, as in all other outcomes Google wins the desktop with their push into apps, and takes more consumer traffic from them.
You can read the write up online:
http://www.netimperative.com/2007/07/02/end_game_Google/view