Microsoft Corp. said on Monday that it plans on releasing and testing online version of its popular Office software in a first step towards shifting some of its computer-based products to the Web. This move seems to be strategically placed in order to announce, and at the same time, fend off Google Inc. and Yahoo Inc. competition.

The "beta" version of Windows Office Live will be released Wednesday for free. This is in order to work out all the potential bugs before its full release later on in the year. Their new product will definitely rival the services of Google and Yahoo, but some question the effect it will have on the market. Other are looking forward to seeing what Microsoft's got in the cookie jar. Jeff Raikes, president of the Microsoft Business division said in a statement, "We are making online services available for small businesses to create (big business-like computing) for them without the management requirements."

The service will be split up into three service tiers. The basic version is completely free and offers up to 5 separate email accounts (all with 2 Gigs of storage). Other versions are subscription based. Microsoft Office Live Collaboration offers online project management tools based on Windows SharePoint Services technology for companies that may already have a Web site.

Microsoft Office Live Essentials (the 3rd tier), provides up to 50 email accounts, more management tools, a package of internet based apps, projects and documents along with more advanced web features. The good news is that all three versions will be free during the Beta testing. Baris Cetinok, director of product management and marketing for Microsoft Office Live said that the two subscription services will start from $29 (16.6 pounds) per month. In an interview, Cetinok said, "We looked at the segment for Office Live and not only was there a great growth opportunity, there was a great unmet need." Get more info right here.