Microsoft has unveiled a brand new cloud-based product which they hope will win over the business community.  Cloud-based systems are in vogue at the moment – “cloud” basically refers to the internet – meaning all the software is presented to you in your browser.

This approach can pay dividends in terms of platform (you can run the software no matter what operating system or browser you have in front of you) and backup (your files aren’t stored on your machine unless you specifically download them, they are stored online, and therefore always safe!).  Cloud computing is especially useful for organisations whose staff travel a lot – you have access to your data anywhere, and it’s state is persistent no matter what machine you’re using or where you are.

Office 365 will bring together Microsoft Office, SharePoint Online, Exchange Online and Lync Online. Instead of having to install it on your computer, you can simply pay for and access the service online. Or, ‘in the cloud.’

The big advantage for freelancers and contractors will be the ability to communicate and collaborate via their office products online. It further emphasises the growing importance of cloud computing for the business community – and pitches Microsoft head-to-head with Google.  Google’s “Docs” has been the premiere cloud productivity suite since its launch in 2007, and up until now has had few competitors.

Microsoft will charge $6 per user per month for businesses with under 25 employees – for larger companies prices go up to $27 per user per month.  Google’s Apps programme, which includes Docs, is free for businesses under 50 employees, and costs $50 per employee per year for businesses with more than 50 employees.  Microsoft’s offering is substantially more expensive, although if they can bring the full, more powerful functionality of Office to the cloud, the extra cost will be worth it for some organisations.

To find out more about how Office 365 aims to help small businesses, see the Microsoft Small Business site.

So, what do you think? Will Office 365 be of use to your business?  Personally we use Google Apps at Freelance Advisor HQ and love it.