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Eye of the Needle by David Needle (bio)

Insights from Silicon Valley and beyond



Zoho takes pride in Microsoft's 'Fake Office' zing

When the big boy kicks sand in your face, you can either go home and sulk or make jokes about what big feet the bully has. You’ve gotta love upstart Zoho for taking the second course of action.

An early provider of online productivity applications, Zoho has moved quickly to build out a substantial suite of integrated applications that compete with Google and others in the cloud computing space.

Zoho’s CEO Sridhar Vembu had an entertaining blog post yesterday responding to a Microsoft executive’s reference to “fake Office” products. Earlier this week, Microsoft announced price cuts to its Business Productivity Online Suite (BPOS) by a third, bringing the price down from $15 per user to $10 per month. Google’s App Suite, by comparison, costs $50 per user, per year.

Vembu quotes Ron Markezich, corporate vice president of Microsoft Online, as noting the company offers a scaled-down version of BPOS for $36 a year. And furthermore “…we’re not seeing any inclination that Zoho or Google or Zimbra or any other of those offering fake Office capabilities can replace [Microsoft Office].”

zoho-logo.gif

That was all too much of a red flag for Vembu not to charge after:

“Wow, wow, wow — Fake Office! That is indeed a badge of honor for us. We just have a polite suggestion to Microsoft: to be perfectly consistent, Microsoft should also label their Bing ‘Fake Search’ — fair is fair, right? For the record, we actually think Bing brings a welcome dose of competition and we certainly don’t think Bing is by any means fake, but with Microsoft marketing terming the entire competitive landscape to their number 1 cash cow ‘fake’, we have to wonder if that would apply to their own effort at competing with the other dominant vendor.”

And more:

“Seriously, the whole ‘fake office’ designation illustrates the main problem Microsoft faces. In their world view, with their quaint ‘Release to Manufacturing’ rituals, the fact that a Zoho user has no CD or DVD to buy, no bloatware to download, nothing to install, simply just visit a web site, log-in (using Google or Yahoo accounts, if they must), and they are on their way to Work Online, must all feel a bit, well, fake. But take it from us Microsoft: there is nothing fake about browser-based applications, no matter how you wish to keep the world on your ‘manufacturing’ world-view of software, with your proprietary lock-ins and your 90 percent operating margins.”

In light of Markezich’s comments, Sembu finished by ‘thanking’ Microsoft for the Fake Office name and announced a new site FakeOffice.org site to help make Zoho’s case.

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