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Why Apple Inc. (AAPL)’s Decision Should Terrify Microsoft (MSFT)

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Apple Inc. has Microsoft in its crosshairs, according to Scot Finnie of Computerworld in his piece ”How Apple is playing hardball with Microsoft.”


Finnie sees Tim Cook’s company’s decision to stop charging for its operating system and business suite software as a declaration of war on Steve Ballmer’s corporation. That’s right OS X and iWork are going to be free, and rather than seeing this fact as a kowtow to the open-source minded, Finnie is convinced that taking down Microsoft Office is the Cupertino-based company’s goal. The number of applications from Apple that perform many functions, such as  faxing from iphone, is clearly flooding the market.


Of course Frank Shaw, Corporate Vice President of Communications at Microsoft bashed Apple Inc. in general, and iWork in particular in a blog post on the Official Microsoft Blog laughed off any idea of a competition between the two companies in the work suite realm, writing:

 

Apple reported recently that they were dropping their expenses on their “iWork” suite of apps. Presently, since iWork has never gotten much footing, and was as of now estimated like an untimely idea, it’s barely that astounding or critical a move. And it doesn’t alter the reality that it’s much harder to urge work done on a gadget that needs exactness input and a desktop for genuine side-by-side multitasking.

 


Shaw is right, of course. Microsoft Office outperforms iWork. However, as Finnie correctly asserts, that’s not the point. Apple Inc. has fundamentally shifted both “its market position and value proposition for both i-devices and the Mac against those of Microsoft and Google.”


Increasing access will ultimately lead to a better iWork and OS X. Apple’s decision shakes up the industry and captures attention. Microsoft ought to be worried, as Apple surely has plans to capitalize, and even the most loyal Microsofters are sure to be intrigued by the prospect of not paying for their work suite.


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