Maybe Google will be able to rescue something from its Docs misadventure, but it better do something quick. Microsoft says it can solve big customers' big complaint about Google Docs and will do so at a price Google understands: Free.
Here's the gripe: Corporate IT doesn't think Google Docs are a secure place for important information. Microsoft will deal with this by offering something Google doesn't, the ability to host Office Web on the customer's own servers.
And Microsoft will include this capability--for free--as part of all Office 2010 volume-licensing agreements. OK, that isn’t totally free, but for customers who will upgrade to Office 2010 it's a nice value add. It is also something Microsoft could easily package with other deals, such as server operating systems and even Windows 7, as an incentive to upgrade.
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