Microsoft (NASDAQ:MSFT) launched the Technical Preview of Office 15, the next version of the productivity suite, in January. It will reportedly unveil Office 15 to the general public on July 16, and follow it up with a public launch of the Office 15 Consumer Preview. Office 15 will offer a completely redesigned interface, optimized for touch-based tablets as well as standard notebooks. Microsoft Office competes primarily with Google (NASDAQ:GOOG) Docs, Apple (NASDAQ:AAPL) iWork and open-source alternatives like Open Office and Libre Office. [1]
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Office 15: A Major Release
The last version of Office – Office 2010 – has sold more than 200 million licenses since launch. With Office 15, Microsoft is targeting a larger market, and may sell even more licenses, though the average selling price (ASP) may take a hit due to cheaper versions for tablets.
According to Microsoft, Office 15 is its “most ambitious undertaking” yet, and will unite the Office software suite with its cloud and mobile versions. Besides the core Word, Excel and PowerPoint apps, Office 15 will also include upgrades to Exchange, SharePoint, Lync, Project and Visio. Despite increasing competition, we expect Microsoft’s market share in the office productivity software market to show only a slight decline in the coming years.
Along with a boost in Windows 8 sales, we expect the entry in the tablet market to spur the sales of Office 15 as well.
Office is Microsoft’s most valuable business and generates a majority of its revenue. It accounts for more than 30% of Microsoft’s $40 Trefis price estimate, which stands nearly 30% above its current market price.
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