Acquisition strengthens online apps

Google's JotSpot acquisition could put pressure on Microsoft's online apps business

Google has taken another step towards building up a free online applications suite with the purchase of JotSpot. The move builds pressure on Microsoft to add more detail to its strategy for web-based apps.

California-based JotSpot is one of the better-known members of a group of startups building web-based productivity programs. It uses a wiki-based approach to develop spreadsheets, documents, calendars, customer relationship management and other applications.

JotSpot users who pay for use of the firm’s programs will no longer have to pay their fees as Google transitions the purchase to its free model. However, as occurred with another acquired online program, Writely, JotSpot said it will not accept new accounts while it adapts to life under Google.

The JotSpot deal will add fuel to the suggestion that Google is building a genuine alternative to Microsoft Office. JotSpot joins online word-processing program Writely, acquired with the purchase of Upstartle earlier this year, Google Spreadsheets and the bundle of communications, calendaring and web development tools called Google Apps for Your Domain.

In a September interview with IT Week, Chris Capossela, vice-president of Microsoft’s Information Worker division, said Microsoft was still pondering its competitive strategy.

“The most important thing we can do is invest very heavily in Works, Office and Live,” he said. “We think [the balance lies] in a combination of rich desktop services like Word and complementary services. It’s not about Word on the web. Customers are more involved in solving problems.”

Capossela added that Microsoft was considering letting users download Office applications to another computer when travelling.

In the meantime, Microsoft earlier this week [31 October] said that Office Live, a set of online programs including storage, email, calendaring and web-site design tools, will be released in the US and become a free beta in the UK on 15 November.

Despite the excitement around Google’s applications push, web-based apps are unlikely to displace their disk-based equivalents soon for most businesses. While online programs have advantages in terms of free or low pricing, file sharing and accessibility from any browser-based PC, critics also point to performance issues, relatively limited feature sets and integration issues with popular programs.

Some watchers criticised Google’s purchase, suggesting that the online apps field is becoming uncompetitive. However, VisiCalc spreadsheet pioneer Dan Bricklin sent his WikiCalc online spreadsheet into what is likely to be its final beta-test version.