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OpenOffice 3.0 Wants to Compete with Outlook

I was just over at the OpenOffice site browsing through some of their marketing materials to see if there was anything interesting.  I came across a presentation that was given on September 19th at the OpenOffice 2007 Conference.

CyberNet Ryan

Context & Ripple Effects

Back in February 2007, Mark Evans asked whether Google Office would catch on, framing the year's central question: could anything dislodge Microsoft's grip on productivity software? OpenOffice's answer, per a September 19 presentation at the OpenOffice 2007 Conference that CyberNet surfaced from the project's own marketing materials, is to stop being just a document suite.

The significance is where OpenOffice is aiming: Outlook is not a word processor, it is the anchor of Microsoft's Exchange-and-email lock-in inside enterprises. A free desktop suite claiming parity there attacks the stickiest part of the Office bundle, not the easiest part.

First-order effects

  • Microsoft now faces a zero-cost desktop alternative positioning itself directly against Outlook, threatening the email-and-calendar component that keeps corporate customers renewing Office licenses.
  • OpenOffice's roadmap expands from documents into email and groupware, raising the project's ambitions — and its support and development burden — well beyond what a word processor and spreadsheet require.

Second-order effects

  • With Google pushing hosted office applications since early 2007 and OpenOffice pushing a free desktop suite, Microsoft is being squeezed on Office pricing from two directions at once, making bundling discounts its likeliest defensive lever.
  • Enterprise IT buyers gain negotiating leverage they have not had, since a credible free fallback changes the cost of rejecting Microsoft's renewal terms.

Third-order effects

  • If free suites keep absorbing groupware functions, the real battleground shifts from file formats to server-side integration — whoever makes Exchange-compatible collaboration workable without Exchange sets the terms of enterprise office competition.
  • The pattern points toward office software consolidating around platform ecosystems rather than standalone applications, with open-source projects needing institutional backing to sustain the broader scope.

The trend: Productivity suites are expanding into messaging and groupware as free and hosted challengers converge on Microsoft's Office-Outlook bundle from both the desktop and the browser.