Microsoft CEO signals new course with Office for iPad

Monday, 31 March 2014 00:00 - - {{hitsCtrl.values.hits}}

REUTERS: Microsoft Corp’s new Chief Executive Officer, Satya Nadella, finally unveiled Office for Apple Inc’s iPad in a polished debut that set him apart from his energetic predecessor while signalling his plans to make mobile apps the top priority at the world’s largest software company. At a news conference Thursday, executives demonstrated a new “touch-first” version of Office crafted for the iPad, available for download as a free app, though a subscription is needed to let users create or edit documents rather than just read them.

Significantly, they did not demonstrate any software on Windows machines, telegraphing a departure from former Chief Executive Steve Ballmer’s focus on the personal computer operating software and its own devices. Nadella kicked off the presentation with a fluid, low-key introduction to Microsoft’s approach to the new mobile, cloud-centric world of computing, in his first public appearance since taking the helm 52 days ago. Nadella gave no indication of when Microsoft would release “touch-first” versions of Office apps for Windows 8, the latest version of the operating software, which he acknowledged had fallen behind in the mobile era. “The Windows strategy, there’s no change, except we want to be known as the innovative company that’s coming from behind in some categories,” Nadella told reporters in an ad hoc question and answer session after the presentation, another sign of new openness at the company. “If you look at the story of Windows, we lead in some, we have fallen behind in some. We’re grounded in that reality,” he said. “What we need to be is a challenger there and be able to show what we’re capable of doing in these new form factors.” Apart from the absence of any Windows devices, the Surface, one of Ballmer’s prized concepts, was conspicuously missing from a show floor at the event that included Google Inc Android tablets from Samsung and Acer as well as the iPad. Nadella did not mention the poor-selling tablet at all in conversations with reporters. The Office apps are free to download from Apple’s app store, but to create new documents, users will need a subscription to Microsoft’s existing cloud-based service called Office 365. Microsoft’s Office 365 Home Premium, designed for home consumers, costs $ 100 a year. For businesses it costs $ 60 or more per year, depending on features. “Welcome to the #iPad and @AppStore!” Apple Chief Executive Officer Tim Cook tweeted after the announcement. “Thanks @tim_cook, excited to bring the magic of @Office to iPad customers,” Nadella tweeted back. Analysts have estimated that Microsoft could rake in anywhere from $ 840 million to $ 6.7 billion a year in revenue from iPad-native Office, although some fear it may have moved too late to grab the attention of many. Easy to use, touch-friendly work apps like Haiku Deck, Quip, Smartsheet and Evernote, not to mention Google Apps, have quickly gained a following among younger users who have never worked with Office applications, or relish the change.