Google battles Microsoft with Doc Verse acquisition

Sunday, 07 March 2010 10:47 AM Maui A. Hermitanio

Internet search giant Google is waging a ‘Word war’ with Microsoft Corp. with its recent acquisition of San Francisco-based start up Doc Verse that allows Microsoft users to edit and share their documents on the Web.

According to Google product manager Jonathan Rochelle, "with DocVerse, people can begin to experience some of the benefits of Web-based collaboration using the traditional Microsoft Word, Excel and PowerPoint desktop applications."

In an interview with Reuters, Rochelle said that DocVerse software makes it easier for users and businesses to move their existing desktop PC documents to the Internet ‘cloud,’ where the documents reside on the Web and can be accessed from any PC.

Tech observers say this assault through ‘cloud computing’ is targeting Bill Gates’ productivity software business. Office is the most profitable unit of Microsoft’s business division with more than USD12 billion in profits last fiscal year, more than half Microsoft's USD20.4 billion overall profit.

In its blog, Doc Verse founders Shan Shinha and Alex DeNeui said that Google’s acquisition of Doc Verse is the first step in solving problems regarding transitioning to cloud computing. Both were managers at Microsoft before they left to form Doc Verse 3 years ago.

Their first step now is to combine DocVerse with Google Apps to create a bridge between Microsoft Office and Google Apps.

In a reaction, Microsoft said in a statement that the acquisition acknowledges that customers want to use and collaborate with Microsoft Office documents."Furthermore, it reinforces that customers are embracing Microsoft's long-state strategy of software plus services, which combines rich client software with cloud services."

Microsoft is also moving to the cloud computing direction with Office 10. In effect, Microsoft is countering Google Docs with the new Office, Tech Crunch observed.

According to a report in the AllThingsDigital blog, citing unnamed sources, the price of the deal was between USD25 million and USD30 million.

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