Microsoft  has upgraded its popular Word, Excel, Outlook and PowerPoint applications plus adding its online version to keep up with the new class of mobile and web connected users since the last time they upgraded in 2006.The company which currently has over 500 million users hopes to retain its solid stand in the market especially in the business world.
Microsoft's business division which gets 90 percent of its sales from Office averages around US$2.8 billion profit per quarter. That is 47 percent of Microsoft's total profit so far this fiscal year, second only to Microsoft's core Windows franchise.
Analysts have said that the Microsoft Office 2010 will keep it ahead in the market, despite it playing catching up to some Google applications. As well as a number of new features and improved functions in the programmes within office, Microsoft is giving ordinary consumers a chance to use online versions free of charge from next month through Microsoft Windows live service.

But Microsoft faces more pressure in email and calendar programs, the area’s most amenable to online and mobile use, where Google already has a strong foothold. Google Docs stripped down versions of Microsoft's core programs are available over the Internet with no need to download software.They are free for personal users and US$50-per-user per year for companies. Google says it has picked up 25 million users since launching almost four years ago. Starting this week, the software giant company is expected to push a list of improvements such as editing photos in word, using video in power point and collaborating on documents and managing e-mail conversations in new ways.

Although Microsoft has 500 million users, it will be facing stiff challenge from one of its core rivals Google who have 25 million users, a number that is growing everyday which is a fraction of Microsoft strong hold base. Google Executive leading in the company charge into business applications Dave Givouard said Microsoft had conceded that it was the future and hoped that Google products and services will get a lot more consideration.

According to the latest data from tech research firm Forrester, 81 percent of companies are running Office 2007, compared with only 4 percent using Google's online equivalent.

A Forrester poll indicates almost a third of existing Office users plan to upgrade to Office 2010 -- which will be available to them from in the soonest time possible. Ordinary consumers will now get a chance get the chance to buy Office 2010 next month, at prices ranging from US$119 to US$499, depending on the level of sophistication.

"Google is not the threat that it will be once the 'virtual desktop' becomes a no-brainer," said Richard Williams, an analyst at Cross Research, referring to the practice of accessing software over the Web. "That's the time Microsoft really has to worry about."