Microsoft is locked in a battle with Google and other solid competitors in the cloud-based enterprise email and collaboration market, where Google Apps has been available since 2006 and also features a free version aimed at the education market.

Microsoft leads the on-premises enterprise email and collaboration market, but is having to fight tooth-and-nail to defend its turf as customers opt to switch to a cloud-based model for this software.

Microsoft critics have said that it took the company too long to come out with Office 365, giving Google and others opportunity to encroach on its stomping ground. BPOS, which Office 365 is replacing for businesses, lacked Office software, featured Lync's predecessor and its SharePoint and Exchange components were based on the 2007 versions of the products.

The IDG News Service