Microsoft Pushes New Office into 2007

A day after confirming a delay of Windows Vista until 2007, Microsoft late Thursday said there would be a similar delay in the launch of Office 2007.

While the code for the productivity suite is expected to be completed this year, a consumer launch will occur in conjunction with Windows Vista, expected in January. Members of Microsoft's Volume Licensing Program would be able to get Office code in October, however, a month ahead of Vista's business launch.

With both Vista and now Office missing from the holiday season lineup, analysts believe that PC sales will suffer as a result. Although, some say the damage was already done with Vista.

"Unlike Windows Vista, I also don't see any major disturbance caused by 2007 delivery of the next Office version," Jupiter Research senior analyst Joe Wilcox said. "Microsoft is smart to release both products together."

Microsoft had also been rumored to be planning a massive launch campaign surrounding Office and Vista. Realigning the two products would allow such a plan to still take place, although a bit later than originally expected.

Wilcox explained that Microsoft is fighting the belief among consumers that what they already are running is "good enough." Shipping the two products together may give many enough impetus to go out and upgrade, he says.

Analyst Rob Enderle of The Enderle Group echoed Wilcox's sentiments, saying the delays as well as the restructuring of the Windows division would benefit all in the end.

"While the impact to 2006 revenue for the industry due to the delay will be painful, the end result should be a better Vista product, and going forward, a vastly more reliable Microsoft roadmap both in terms of product content and product timing," Enderle argued.

Office 2007 is a major upgrade to the ubiquitous suite, featuring XML-based file formats and a complete interface overhaul.