Microsoft Socks Google by Offering Free Web-based Software

Microsoft Corp will release a free version of Web-based Office software that users can access online. It looks like the ruler of paid software is competing head-on with rival Google for users and profit.

Microsoft will offer versions of Word, Excel, PowerPoint and a note-taking program promising the same look and function of its software found in the Office suites for personal computers. These products will interface with Bing, the company’s new search site. And they will be launched at the same time as Office 2010 at the start of next year.

Fortune.com’s John Fortt writes (Microsoft Office to online – for free),

The latest version of its ubiquitous productivity software, dubbed Office 2010, will come as both a piece of software you can buy for your computer, and as a service you can access in your browser. [UPDATE: Microsoft says it will support the Firefox and Safari browsers as well as IE.] For free. From Microsoft.

Office Web applications will be available through Windows Live. Consumers will get access to the Office Web applications for free. To service large volume license customers, Microsoft is offering a subscription service as part of a hosted offering such as e-mail.

Microsoft is also cutting the number of Office editions to five from eight.