News

Google Expands Office Software

• By The Associated Press
• April 18, 2007

Google Chairman and Chief Executive Eric Schmidt described the software Tuesday at a conference for Internet entrepreneurs. He also blasted Microsoft and AT&T Inc., whose executives complained over the weekend that Google may soon have an illegal monopoly in online advertising.

Google announced Friday it would pay $3.1 billion to acquire ad-management technology company DoubleClick Inc. Almost as soon as Google announced the cash acquisition, Microsoft and AT&T executives said the deal could violate antitrust legislation -- and result in a dangerous concentration of Internet users' personal data at Mountain View-based Google.

But Schmidt, noting that Microsoft and AT&T have had their share of antitrust skirmishes, retorted, "Give me a break."

"They're wrong," Schmidt said. "It's false."

The verbal volleys come as Microsoft and Google escalate the rivalry to control how people use the Internet. Microsoft has long dominated the computer desktop with its Windows operating system. But people are increasingly using home pages, bookmarks, search engines and other Web-based programs to determine where they shop, how they communicate and how they play videos, music and movies.

The two companies already offer e-mail, word processing and spreadsheet programs, and other tools. Google's new presentation software will compete against Microsoft's ubiquitous PowerPoint software that's part of its popular Office suite.

"This completes what most users of PCs consider the Office suite," said John Battelle, who leads Federated Media Publishing and grilled Schmidt about the product at the conference.

Microsoft spokeswoman Lisa Koetz said competition is good for customers, and Microsoft is listening to the 450 million people who use Microsoft Office to ensure it is meeting their needs.

"The success we are seeing with the 2007 release of Microsoft Office tells us we are heading in the right direction," Koetz said.

People use Google's software over the Internet and can simply log in from any computer through a Web browser, while Microsoft Office must be installed on an individual computer.

Google would not release more details about the presentation software, though product manager Rajen Sheth said users would be able to store documents online and let anyone with a free Google account view the slides, spreadsheets or documents online.

Google will give away two versions of the presentation software starting this summer, and it will sell a "Premier" version with extra storage for $50 per year. The presentation program is part of Google Docs & Spreadsheets, which the company has been unveiling piecemeal for nearly a year.

Schmidt, who used a beta version to flash slides at the conference, downplayed the Microsoft rivalry.

"It does not have all the functionality nor is it intended to have all functionality of Microsoft Office," he said, but quickly added, "It seems to be a better fit to how people use the Web."

Google announced the acquisition Tuesday of Tonic Systems Inc., a startup based in San Francisco and Melbourne, Australia. The company specializes in collaborative presentation software and is expected to contribute to future versions to Google's productivity suite. Financial terms were not disclosed.

Google shares fell $1.47 to close Tuesday at $472.80 on the Nasdaq Stock Market, where Microsoft shares gained 12 cents to $28.85.