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Hosts Divine Meaning of Microsoft Moves

By Jay Lyman

December 14, 2005 -- (WEB HOST INDUSTRY REVIEW) -- Web hosting forums had plenty to say about the recent announcement of Microsoft's plans for Office Live, which the software giant says will include "a professional Web site, expertly hosted by Microsoft" for subscribers to the new service. Hosts contemplated the impact of customer migration to Microsoft's Live model, as well as "free," ad-supported software from Microsoft and difficulty updating because of OEM and manual key stickers.

   
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Redmond's plans for hosting along with its Office Live strategy came up on a WebHostingTalk (webhostingtalk.com) thread when a poster asked what those plans would mean for the industry. Highlighting Microsoft's billing of Office Live on the company's site (microsoft.com/office/officelive/default.mspx) and the key selling point of free expert hosting, free email and Web site, the post indicated some concern over losing customers.
 
"I am very interested to hear what everyone on this forum has to say on the matter as every one of my clients currently has a paid version of Office and I believe they would eventually migrate to Office Live," he wrote. "And would they be happy to continue to pay for hosting?"
 
Those fears were both reinforced and downplayed as hosts speculated what Microsoft might be planning for both Office Live and its associated hosting.
 
After some debate as to whether Office Live will evolve into a Web application-style Office offering from Microsoft, the original poster reiterated his concerns for the industry, adding that while Web developers may be spared since Microsoft will likely offer do-it-yourself site tools, hosting companies and Web developers with hosting revenue may be more at risk.
 
However, a subsequent post pointed out that Microsoft - which is probably not interested in "hosting everybody's Web sites" - will be ignored by a number of people who will not want the company hosting their sites, even if it is free.
 
"What I think they are interested in is getting people to use a Web based Office, because they would prefer to sell using a subscription model than have people buy a one-off license and then have to persuade them to upgrade," the post said.
 
The question of "do you really want Bill hosting your Web site," offered by another post in the thread, was left with Microsoft viewed as another huge company that still left room for smaller players.
 
"Honestly guys, look at 1&1, Go Daddy, and the like," said the final post in the thread. "If Microsoft's hosting turns out to be like any of theirs, the industry isn't going to have to worry at all. On top of which there are those clients who prefer to be hosted with smaller companies that would give a more personal touch to the industry. In any case, I do agree we all should prepare for both outcomes really."
 
Microsoft's reported contemplation of making software free to customers by supporting it with ads also drew some industry discussion on a thread at HostHideout (hosthideout.com). The discussion kicked off with the question of how any other software or operating system could compete given Microsoft's control of the PC software market.
 
"Giving it away for free would just increase their market share," the post said.
 
The words "Microsoft" and "free" used together prompted skepticism from subsequent posters, one of whom speculated that users would download free versions and use patches to remove the ads. However, that idea was refuted as other posters predicted Microsoft's maneuvers.
 
"I think the idea is that although there'd certainly be a fair number of those types, it would basically flood the market and ensure a strong footing of the OS on just about every consumer PC," said one.
 
"I'm sure the people at MS have already thought of that and they would ensure that their software would detect any work-around to their advertising," said another. "People might otherwise find their 'free' software suddenly disabled. There is a price to pay and 'free' is not necessarily free."
 
Another recent SitePoint (sitepoint.com) forum thread started out with a question about using the new Windows Update service, but having trouble with the OEM and manual key sticker numbers, resulting in a "not genuine" message from the Microsoft site.
 
One response suggested the Windows key had already been used too many times to update without issue, while another warned to be sure it was the official Windows Update site from Microsoft, rather than a scam.
 
The issue of the software dealer's trustworthiness came up, and in the end, the advice was for the original poster to try changing the CD-key to the "real" key on the COA, assuming the key had not been blacklisted as previously mentioned.
 
"If it still does it with the OEM sticker key, then take it back to the dealer and/or call Microsoft for a new key," said a response.

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