The State of Office 2.0 and its Future

Over the past 10 years, Corel, Sun, IBM and others have tried to compete with Microsoft in the office software business, but thus far none of them have been able to take a significant chunk of Microsoft’s large market share, which generates revenues exceeding $15 billion each year. These companies have tried everything; including Sun open sourcing their StarOffice suite and releasing it as the free OpenOffice. Yet, even this very compelling move has not been able to make a serious dent in the market.However, with web 2.0 and the rise of Rich Internet Applications there are renewed hopes for entrepreneurs to be able to compete with Microsoft’s Office juggernaut. Now these smaller players can leverage the sharing & collaboration capabilities of the Internet, remove installation & maintenance frictions, and provide globally accessible office software.

Competitive Landscape

By snapping up Virtual Ubiquity, Adobe has become the latest player in the web office market, but Google, Yahoo!, Zoho, and even Microsoft, are all established players in the game as well. Let’s take a look at all of the major contenders and their strategies:

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