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Microsoft released Office 2010 in June, and the bundle contains new versions of its famous word processor, spreadsheet, database and related programs. The downside, though, is the cost: A hefty $499 per user, or seat; discount pricing for current Microsoft Office users is no longer offered. And here's where free or low-cost alternatives start to look attractive. Let's take a look at the most popular offerings. Then we'll cover how to make the decision.
Google Apps | www.google.com/apps | Price: $50 per year, per seat for business users; free for personal use.
There's no better indication of the hunger for software savings than the success of Google Apps. The company claims that some two million businesses have migrated to its programs since their introduction in 2005.
"The low cost of the programs is only one reason for their popularity," says Rajen Sheth, group product manager for Google Apps. "The ability to collaborate is another."
Collaboration in Google Apps works this way: All of the files you create are stored on a remote Google computer, or server. You and your employees can access these files using passwords from any computer connected to the Internet. This ability, in turn, means a number of people can work on the same document concurrently. They can even exchange comments about what they are doing, using a chat interface. Consultants praise this collaborative power as a real benefit that is not yet offered by Microsoft Office.
The downside, though, is part and parcel of the benefit. Note that Google Docs saves your documents on its own servers, or "in the cloud." Not all businesses will be comfortable with this arrangement. How certain are you that competitors cannot get to those documents that contain your business information? And what if your user name and password get stolen? There is a real risk in using online programs. Another downside: Google Docs does have occasional outages, which blocks users from their work for a time.
OpenOffice.org | www.openoffice.org | Price: Free for business and personal use.
When it comes to saving money, how can you beat "free"? Little wonder OpenOffice.org is the software suite of choice for many businesses around the world. Like Google Apps, the suite contains basic programs for word processing, spreadsheet calculations and database management. Some users complain that the suite has an awkward interface compared with Microsoft Office. This might not bother you, however. The word processor works very much like Word, but lacks some of the database integration features.
Generally speaking, OpenOffice.org gets praise for its power. "If I were to recommend a free productivity suite, I'd have to say it would depend on what the user wanted to do," says Figart. "If they're doing a lot of collaborative work, then Google Docs with its cloud computing is completely superior. If they're doing work more standard to a business office, OpenOffice.org would be the way to go. It has more options. You can create styles, tables of contents, and other things that Google Docs does not handle well."
Zoho | www.zoho.com | Price: Variable for business; free for personal use.
While not as well known as Google Apps or OpenOffice.org, Zoho offers a comprehensive range of typical office software programs, from word processing, spreadsheet and database varieties, to more unusual ones such as project management and note taking, and even a collaborative wiki.
The company prices each program individually, so business owners can pick and choose what they want. To get pricing on some of the modules-including the word processor and spreadsheet applications-business owners need to inquire via e-mail.
Like Google Apps, Zoho is "cloud based," which means your documents are saved not on your computer but on a remote server. Again, that Internet presence fosters collaboration while opening the door to worries about data security.
From the standpoint of design, though, you may find it easy to get up and running. "Zoho echoes Microsoft Office in many ways," says Laura Quinn, executive director of Idealware of Portland, Maine. "But the interface is simpler and there is an easier learning curve."
Before You Switch
Before taking the plunge, lay the groundwork by answering these questions: Will the software do everything you need? Some programs perform specific tasks better than others. Is the software compatible with your previous work?
Will your new software programs be able to read the documents you have already created? And will the new documents you create be compatible with the systems used by associates or customers with whom you communicate?
Also, what costs will you incur for training? Switching to new software can be costly in terms of interrupted workflows and additional labor hours while people climb the learning curve. One smart way to transition is to start small: Start with a few work stations at first. Laying the groundwork in this way will help you decide if ditching Microsoft Office for cheaper alternatives makes sense. And it will help smooth the way to a successful software transition.
For many businesses the long-term savings will be worth the requisite time and trouble. "With these applications businesses have a choice," says Google's Sheth. "Rather than upgrade to a new version of Microsoft Office, they can opt for compatible software that is cheaper and is sufficiently powerful to satisfy the needs of the vast majority of their users."
