Bullish on Office 2007
Maarten asks the $11.5 billion dollar question* – Why Office 2007? This is a question I’m interested in following as more and more people get exposed to Office 2007 beginning with beta 2. Personally, I'm more excited about this release than I was for the Office 97 release. As with Office 97, this release offers tons of new things for developers and end-users alike. Most importantly, the features have legs. To me, this release makes all releases since Office 97 feel like minor releases. Office 2007 is truly the next generation of Office (after Office 97).
Putting on my corporate finance hat for a second, I think there is definitely the potential for value creation with this release – definitely more so than any previous release. There, I said it. Go ahead – accuse me of drinking the kool-aid. :)
While personally I’m sold on the product, I think there is a significant segment of the user community that will have a hard time agreeing with me. There are always those who resist change and given the amount that has changed in Office 2007, these folks will be very vocal. On the one hand, I understand that many professionals are very busy and re-learning something represents a time investment when time is of short supply. On the other hand, real advancements in productivity cannot be made without change. It’s a matter of short-term costs versus longer-term benefits where the resistance to change stems from the risk that you may never recoup the short-term costs. Generally, I think the potential for value creation in this case, especially when viewed from a companywide perspective, makes this a risk worth taking.
So, why should Office 2007 be embraced? Off of the top of my head, here are a few things that stand out:
- It is simple to create professional looking documents. After awhile, “Plain vanilla” documents created with previous versions of Office will look so antiquated by comparison that companies/employees who create them will start to look second-rate.
- The integration between the core suite and Office SharePoint Servers took another huge leap forward. Big wins: Business Data Catalog, document libraries with user-defined content types, workflow, and Excel Services.
- XML file format. While I’ll follow the migration story closely, I think the developer potential around the XML file format is substantial, particularly for manipulating or creating Office documents on a server and for ISV’s looking for better ways to integrate their products with Microsoft Office (even if their product runs on different platforms).
- OK – this one probably doesn’t do much in terms of value creation and is purely subjective, but I love the new look. It doesn’t feel 10 years old anymore.
* annualized 2006 Microsoft Information Worker segment revenues using YTD results through 3rd Qtr