Microsoft Corporation (MSFT)’s Office Business Could Be in Trouble

Microsoft Corporation (NASDAQ:MSFT) has even gone on the offensive. The company released an ad attacking Google Docs for its inability to properly handle Office files.

And that, of course, is the crux of the situation. Office has been so dominant for so long that its files are the standard. Although Google Docs may be cheaper, enterprise users in particular are loathe to upgrade to a new system that can’t handle existing files.

After all, a large amount of business users (perhaps as much as 80%) might still be using Windows XP to some extent.

The importance of Office

Office is a huge part of Microsoft’s business. For the full fiscal year 2011, Microsoft Corporation (NASDAQ:MSFT)’s business division (which is composed mostly of Office) brought in more revenue and profit than any other division.

The loss of Office would be a devastating blow to Microsoft. But will that happen? Microsoft has a deeply entrenched user base, and it continues to work on improving its Office suite.

But both Apple and Google are moving after Microsoft Corporation (NASDAQ:MSFT)’s customers. If they start to have any meaningful amount of success, Microsoft’s investors should be alarmed.

The article Microsoft’s Office Business Could Be in Trouble originally appeared on Fool.com and is written by Salvatore “Sam” Mattera.

Joe Kurtz has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft. Salvatore “Sam” is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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