Microsoft can answer the threat from Google's new suite

Will Microsoft mount a defense to the just-announced Google Apps suite of web services? More importantly, is Google gunning for more than Microsoft as it rolls out more pieces of the Google Apps suite in the coming year? Symantec? Intuit? Anyone is up for game against Google and its apparent voracity of trying to be everything (possibly) to everyone -- all over the Internet and all though a single, billion-dollar vessel -- the web browser.

Microsoft does not have to worry -- at this point, at least. Its Office franchise, while complex and expensive compared to Google's streamlined and free offerings, are also a way to keep data private and secure on company networks (and in homes). The trust issue that will inherently come up with Google's web-based offerings will take quite a virtual handshake to assure potential customers that data used "on the Google network" will have very cohesive semblance of privacy and security.

What about product quality? Microsoft's Office franchise has the perception that many useless features are added just to give the company an excuse to release another version (and to grab more consumer and business dollars). But, it's hard to say of Google Apps will have the robustness of a Microsoft Exchange server arrangement for email and calendaring, and Microsoft Excel, at this time, is legions ahead of the simplified Google Spreadsheets product.

But, Microsoft cannot rest on its laurels -- Google will be improving these products most surely, and the competitive strife will only tighten up further. Microsoft can innovate and keep an edge or, well, not. But, with its Office franchise bringing in billions every year in revenues, Microsoft has little choice in the matter.

[Disclosure: I own MSFT shares as of 8-29-06]