Microsoft Offers Works For Free

Microsoft has released the new version of Microsoft Works as a free, ad supported office package that will compete directly with Open Office and Google Docs & Spreadsheets.

The Works package offers word processing, spreadsheet and slide (powerpoint) functionality partially based on code from older versions of Microsoft Office.

The move by Microsoft to offer a free office suite comes as online office packages including Google Docs & Spreadsheets, Thinkfree Office and Zoho continue to grow market share due to increased broadband penetration, online convenience and lower costs.

It was not disclosed whether the new version of Microsoft Works would sync with or support Microsoft’s online services under the Live brand. Whilst the version was said to be released July 27, it was not clear where it could be downloaded from or accessed.

Microsoft Works first launched as a Mac application in 1986.

Microsoft Now Selling Digg’s Ads

Kevin Rose writes a somewhat cryptic blog post announcing that Digg has done an ad deal with Microsoft. He says it’s a deal similar
to the one Facebook signed with Microsoft last year. That probably means that, as with Facebook, Digg is getting a guarantee, and Microsoft will be losing money on the deal.

The status of Digg’s relationship with Federated Media is somewhat up in the air right now. Rose says that they will still working with FM (he calls them an “awesome partner”) but in a slightly different capacity. From what we gather, FM will still be selling as many high-CPM ads into Digg as they can.

Update #1: We received this email from FM. It doesn’t clear things up much.

Dear FM Authors,

Our partners at Digg are announcing some wonderful news. Microsoft has agreed to use its technology and sales force to manage Digg’s advertising. It turns the two-way FM-Digg partnership into a three-way one, with FM primarily responsible for selling the conversational and integrated marketing deals that have been so successful for Digg in recent months. It also opens up new doors that will help FM build opportunities for all of our authors’ sites.

We at FM have always been clear about what’s important to us. That’s why our logo includes the words “Author Driven.” So we’re very happy for the team at Digg, as this affirms their success in building a great idea into a great media business in a very short time. We’re proud to have helped Digg grow to this point and prove the value of a true conversational media site. This is also an endorsement of the value of what all FM authors do, and a sign of the great potential for all of your sites.

So please join us in congratulating Digg. Here’s their blog post about it: http://blog.digg.com/?p=89. A joint release from them and Microsoft will be issued shortly.

Microsoft Acquires Advertising Exchange Platform AdECN

Microsoft announced today that it had agreed to acquire AdECN, an advertising exchange platform company based near Santa Barbara.

AdECN offers a real-time, auction-based, neutral exchange for online display advertising that works in a similar way to stock exchanges. A member of the AdECN exchange buys on the exchange for its advertisers and sells on the exchange for its publishers.

AdECN is a direct competitor of Right Media, a company acquired by Yahoo in April for $680 million. Microsoft previously acquired online advertising network aQuantive for $6 billion in May.

Microsoft said the acquisition would assist Microsoft in building a comprehensive search and display advertising platform “that helps advertisers and publishers maximize ROI on digital advertising investments.”

AdECN was founded in 2003. The acquisition price was not disclosed.