I believe there are some strong arguments for this, this time. If we take the new entrants in that space through a classic Clayton Christensen analysis, new online office suites clearly have new market disruptions characteristics. Compared to Microsoft Office, they provide:
- Lower performance in "traditional attributes" but improved performance in new attributes, simplicity and convenience
- Target non-consumption: customers who historically lacked the money or skill to buy or use the product. The standard version of Office costs about $400 where most online office suites are typically free.
- The business model of these new entrants make money at a much lower price per unit sold.
Over the next few weeks, I will take a look at a few of those online Office suites.