Nov 9th 1999: Microsoft today announced Office Online, a hosted version of its flagship suite of productivity apps. Office Online is available immediately on a pilot basis from ASPs and others among a total of fifteen initial partners. Microsoft will also offer the service itself through its bCentral Web services portal for small businesses by the end of the year.

Microsoft is piloting a pay-as-you-go rental model with its partners, some of whom expect to offer pay-per-use licensing to their customers as part of the trials. Others are providing monthly subscription pricing within a multi-year contract, or bundling the application suite as a component of a broader service package. The scheme is expected to move out of its pilot phase by the middle of next year.

Microsoft is positioning the service as an alternative for users located at branch offices or in small businesses who do not have easy access to IT support facilities. The company stated it believed most users would continue to buy and install Office on local machines rather than renting the Office Online service.

The first partner to announce an existing customer for the service is Fort Lauderdale FL-based ASP Telecomputing, which is rolling out its pilot programme in the Mid-Atlantic US states of Maryland and Virginia and in neighbouring Washington DC. Once the pilot is completed, the ASP plans to roll out its offering next year throughout the USA and in Europe.

Office Online uses Windows Terminal Server technology to deliver Word, Excel, Powerpoint, Access, Publisher, Frontpage and Outlook to users across an Internet connection. Users can configure the online package to their individual requirements, and also access additional services from providers, such as website hosting and file storage, hosted Exchange servers, and group collaboration using Microsoft's Office Server Extensions technology. Other, more customised offerings are planned by providers.

For instance, wireless telecoms carrier and ISP Winstar Communications will bundle Office Online as part of a complete communications services package, while PC manufacturer Micron Electronics and startup CenterBeam will include access to Office Online as part of a remotely-managed PC solution for small businesses.

Other participants in the scheme include British Telecommunications, Concentric Network, Digex, Equant, FutureLink, Interland, Interliant, the MTT Mpowered division of Aliant, Qwest Communications, USinternetworking and Verio.