Hosters hail MS Office 365 launch

Microsoft's BPOS replacement gets channel approval but some question the decision to exclude it from SPLA list

Welcome news: Hosting providers will be celebrating the replacement of BPOS with Microsoft Office 365

Hosting providers have welcomed Microsoft’s decision to phase out its software-as-a-service (SaaS) Business Productivity Online Suite (BPOS) offering.

The software giant has announced plans to replace BPOS with a new SaaS package called Microsoft Office 365 in the first half of 2011.

The reworked suite will offer some of the same services as BPOS, including online versions of Exchange and SharePoint. However, unlike its predecessor, it will include a cloud-based version of Microsoft Office.

Peter King, Office server group manager at Microsoft, said partner feedback had prompted many of the changes made.

“The overall aim was to give partners the same flexibility and service online as they get from our on-premise products,” he said.

James Griffin, director of hosting strategy at service provider Star, said BPOS had been in need of a refresh for some time.

“The new name is going to make it a lot easier for end users to understand what they are getting,” he said. “The feature set is also very good and reflects the fact that customers want more than just email and Exchange in the cloud.”

However, Griffin added that he was disappointed to see that Microsoft has not announced plans to include Office 365 on its list of service provider licensing agreement (SPLA) products.

“We were expecting Micro­soft to make it a more level playing field by making it available through SPLA, as well as through the volume licensing agreement, but they have not,” he said.

BPOS Syndication Partner intY said Office 365, currently only available for beta testing, should see off Google’s attempts to do battle with Microsoft in the cloud.

Mark Herbert, business development manager at intY, said: “Google Apps is not getting the kind of traction it needs to be taken seriously as a tool for business and Office 365 is not going to make it any easier for them.”

The reason for that, according to Herbert, is that Mic­rosoft’s on-premise solutions are so widely used in the workplace. Business users tend to stick with what they know when it comes to moving to the cloud.

“Google has seen the best adoption in businesses where the IT staff and
decision-makers want to be seen as trailblazers,” he said.

Clare Barclay, director of partner strategy and programmes at Microsoft, said the time lag between Office 365 being announced and its launch would give partners time to refine their cloud strategies.

“There is a lot more to come from Microsoft about cloud, and now is a good time for partners to prepare for that by developing their skills and refining their business for cloud,” she added.