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Office XP: Should you upgrade?

Cliff Saran
Thursday 31 May 2001 01:00
Microsoft has launched Office XP, the latest version of its seemingly ubiquitous office productivity suite.

Office counts for 40% of Microsoft revenues and the rapid uptake of XP is vital for the company. But users will want to be convinced that its new features make upgrades worthwhile. They will also be concerned about controversial changes to Microsoft's licensing regime that have left industry experts split over whether users should upgrade.

The new version of Office is the first Microsoft product to include features of its .Net platform for Web services. Key features include smart tags, task panes, context-sensitive menus, and improved document recovery.

Microsoft managing director Neil Holloway told CW360.com that smart tags used within Word would allow users to access a mass of extra information from within documents.

He described a development programme with OAG, the online business travel information service, to use smart tags to allow a user to access third-party information from within a document.

With smart tags, a user typing in British Airways flight number in Word, for example, could be presented with full flight details and the status of their booking.

Task panes, said Holloway, allow easier access to Office features. Some 80% of Office XP features already existed in Office 2000 but were hidden away under layers of menus.

The task pane makes access to these features easier. A context-sensitive menu examines the task a user is trying to perform within Office XP and provides an appropriate selection of options.

For Holloway a key improvement in Office XP over its predecessors is the ability to recover documents following a PC crash - a common problem for users and major headache for IT support desks.

Microsoft has also attempted to reduce the spread of e-mail-borne viruses, such as Melissa, by closing a security loophole in the new Outlook address book.

Some of these features may well tempt IT professionals but Office XP is not a low-cost upgrade. Tony Lock, senior analyst at Bloor Research said large business users generally do not upgrade "at the drop of a hat".

Lock said: "Users need an upgrade policy." That means budgeting for much more than just the cost of the product. Training and the inevitable upgrade to hardware that will be required in order to run Office XP must be taken into account. The cost of deploying the software will be significant, even if technical developments have made it easier than previous Office upgrades. Enterprise management tools like Tivoli Enterprise, which provide software distribution, will need to be configured to load up the new software.

Lock told CW360.com: "If there is a compelling reason to upgrade to take advantage of new features, then individual departments within a business may start using Office XP."

However, the lifespan of a desktop PC is generally three to four years and Lock does not believe many organisations will rush to upgrade to Office XP.

Analysts organisation Meta Group thinks users will still need to consider whether to stick with Office 2000 or move to Office XP. Office 2000 has had its "shakeout" period and is a stable platform, according to Meta, whereas Office XP is an unknown quantity.

Meta's advice is for users to wait three to six months after release of a major product upgrade before committing to it.

Microsoft is trying to speed up the process with major changes to its licensing programmes and an upgrade discount which runs out on 1 October 2001.

Users on Enterprise Agreement licences will not have to pay anything to upgrade - as upgrades are free in this licensing package. However, those who have Microsoft's Select licensing agreement - where upgrades are not free - face significant spending for the new product.

Analysts Gartner Dataquest suggest that 80% of enterprises worldwide will have to take a conscious decision about whether to upgrade Office XP before the October deadline.

Meta estimates that no more than 25% of Global 2000 organisations, the world's largest organisations, use Enterprise Agreements, with the remainder purchasing software under the Select programme.

Meta suggests that organisations that are happy with their current Office product and do not plan to upgrade for three to four years might be able to ignore Office XP and save money. However, it warns that these users may find that other elements of the Microsoft strategy force an Office upgrade.

After all, it was Bill Gates who last week told 160 top US business leaders at Microsoft's CEO Summit: "Customers don't always need to upgrade. Your own installed base is, in effect, your own competition."