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Microsoft predicts Office will save the world

by on12 May 2010

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Microsoft is talking up the sales of its new office product even while others are not so sure this one will do very well.

According to a Redmond press release Microsoft expects customers to adopt the new version of Office at the fastest pace in the software’s 20-year history. This will reverse a sales slump and fend off competition from Google Web-based programs, Redmond thinks.

Redmond is hoping that users will upgrade to the new package of business software at the same time they install Windows 7, released last year. Microsoft’s $19 billion business division, gets most of its revenue from Office. Its sales are expected to drop by three percent in the fiscal year ending in June.

But it is not cut and dried. The new software might spur orders in the coming year, but the comeback will hinge on whether businesses recommit to technology spending. Sarah Friar, an analyst at Goldman Sachs told Bloomberg that Microsoft’s position was precarious.

However, although she recommends buying Microsoft shares she is expecting a more moderate migration to Office.


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