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Microsoft has announced plans for a free web-based version of its popular Office software. From 2010, computer users will be able to use software such as Windows, Excel and PowerPoint on the Internet. Analysts believe Microsoft has to go online to compete against similar software offered by Google. One expert said: "Microsoft was forced to provide a free product" because of Google Docs, a free, online document and spreadsheet editing programme. The Web-based version of the Office suite will be available next year. There is an intense rivalry between Google and Microsoft. Google has the lion’s share of the search market. Google hopes its Chrome browser will lure people away from Microsoft’s Internet Explorer.

Microsoft’s latest announcement has raised eyebrows in the technology world. Analysts are surprised it is giving away a free version of one of its most profitable products. They say the software giant looks like it is shooting itself in the foot. The Office suite made $9.3 billion in profit from $14.3 billion in total software sales in 2009. Free versions of Office will surely put a dent in these figures. A Microsoft Office spokesperson, Chris Bryant, said the free version was responding to customer needs, saying: "It's something our users have said they'd like." The Web version of Office 2010 does not yet have a name, but it will have advertising. There will be five different versions on sale for personal, small business and corporate use.