Digital Journal — In yet another move poised to shake-up the tech industry, Google has purchased a small Silicon Valley start-up called Upstartle, a company that has a word processing application known as Writely.
Positioning itself more aggressively against competition, Google’s acquisition will allow the company to compete directly with Microsoft’s Word software, except this Internet-based word processor will allow users to write and share documents through Web browsers rather than with software on a PC. The result: Files can be accessed from anywhere with an Internet connection.
The move is Google’s latest expansion from being simply a search engine and signals the company is looking to penetrate markets long dominated by its Seattle-based rival Microsoft.
In a recent note published by Forbes, Goldman Sachs said, “We disagree with Microsoft’s approach of ignoring the consumer market for a hosted solution and leaving the door wide open for Google to come in and establish a presence in the consumer or potentially the small business market.”
Founded in 2004, Writely allows users to create documents using Web browsers. Files are then saved on the company’s servers in formats including Microsoft Word and Adobe PDF. Third parties can then access files from any location.
While Writely is currently a free service, Google has not ruled out the possibility of introducing additional features on a pay-per-use basis. It could also license the technology to businesses which, if adopted widely, could cut right into the heart of one of Microsoft’s biggest profit sources.
Google currently offers a variety of search-based tools as well as its email and chat services, Gmail and Google Talk. In conjunction with those offerings, Google is gearing up to become a serious threat to Microsoft in more ways than just simply Web searching.
As Forbes was told: “In isolation, a hosted word processor may not be a big draw, but as part of a hosted personal productivity suite it takes on greater strategic significance. Strategically, it seems like Microsoft should have been more proactive in leveraging its strengths to hold turf in the consumer space.”
Last year, Google and Sun Microsystems inked a deal to direct Google users to OpenOffice, a free software package similar to Microsoft’s Office package. OpenOffice is backed by Sun.
According to the company’s website, Upstartle has four employees.
