| Microsoft corporations plan to introduce a data gathering technology in its office business software is expected to squeeze smaller, more specialised competitors. |
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Microsoft Corporation plans to add to its Office business software suite a technology that can easily cull data from large corporate databases that could squeeze smaller, more specialised competitors.
Mainly full-time analysts or other specialised workers have traditionally used the technology, called Business Intelligence. But Redmond-based Microsoft believes increasing numbers of everyday workers may begin to use it for things like setting budgets or tracking customer satisfaction.
Chris Caren, General Manager for Office Business Applications at Microsoft, said the software would be part of Office versions geared towards business users, although he did not provide other details. The next version of Office, whose most popular applications are word processing and spreadsheets, is due to come out by 2006 end.
Caren said the planned offering could access data from competing products such as Oracle Corporation and SAP AG. For more sophisticated ways to sort data, however, a company would have to use one of Microsofts server products as well. Business Intelligence has traditionally been the domain of smaller companies such as Cognos Inc and Business Objects SA. Microsofts Caren acknowledged that its move to bake such offerings directly into office could put pressure on others.
"Were definitely designing Office 12 to eliminate the need for other BI technologies," Caren said.
Analyst Peter OKelly with the Burton Group said the move would force other companies to come up with new ways of making money, such as providing more sophisticated financial analysis tools or even more specialised products. OKelly sees Microsofts move as part of efforts to get people to upgrade to Office 12, which will compete heavily with previous versions of the same product.
He said the move also comes with Microsoft facing competition from Sun Microsystems Incs Open Office suite. "They need to innovate or one of their most profitable business franchises will face a risk," he said.
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