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Link to John Blossom: Team Member Profile     Comeback Kid: Can Contextual Content Save Microsoft Office from Irrelevance?
  John Blossom
    25 August 2003
SUMMARY:
 
 
Microsoft has been unveiling a steady and growing stream of commercial content partners who are integrating professionally-oriented wares into its Office 2003 product line via its new Research Library. Having so much invested in the power of its content authoring tools, it is wholly in Microsoft's interest to give today's leading publishers - the individuals and institutions equipped with powerful content authoring tools - the ability to integrate commercial content efficiently. But are publishers and the institutions that they serve really ready to accept and manage this new environment? There are as many dangers as there are opportunities to explore.

Elvis. Sinatra. Garland. Nixon. Napoleon. Our popular culture is littered with figures who had left their glory days behind and yet found new life in new packaging. Revered as much for their ability to survive as for their dimming talents, comeback legends are inherently appealing to those who have suffered similar fates as they have grown up alongside these icons. So it is that we have to tip our hat to Microsoft for its latest version of its perennial Office suite, now equipped with content integration features that promise new life for this omnipresent but fading software star. Office 2003 includes a new feature called "Research Library", which can provide "right-click" content lookup into internal and external databases - including content from commercial publishers such as Factiva, LexisNexis, Gale Group, eLibrary and newly announced partners Ovid and Thomson MICROMEDEX. Like trilling out a duet with Tony Bennett, these major content aggregators hope to keep their names in the limelight as institutions begin to deploy the new Office package on a network near you.

At first glance, it appears as if this show may have legs. Microsoft's Research Library brings professional-grade content sources right into the most common publishing tools in the world, thus enabling today's leading publishers - the individuals and institutions equipped with these and other publishing tools - to create content using these sources more efficiently and effectively. With its complimentary Office Marketplace ecommerce features, publishers and distributors can lock in existing institutional clients to their services or pick up additional revenues via spot purchases or periodical subscriptions. To Microsoft's delight, all of this is accomplished without people having to go to a Web portal or search engine to initiate a query: users can stay comfortably embedded in their good old Office apps, and stay focused on just the tools that provide Microsoft - and their content partners - the cream of their revenues. With the upcoming version of Windows (codenamed Longhorn), digital rights management capabilities will allow publishers to manage their wares as authors using Office tools distribute their professional content to their audiences.  All in all, this is a well-timed initiative that promises to leverage many of today's major trends in content creation and distribution highly effectively.

Research Library may buy both Microsoft and its partners  duet revenues for some time to come in the institutional space, no doubt. But there are a number of dangers in this effort for Microsoft, content vendors and the institutions to be aware of. Here are a few of our takes as to what to watch out for as Research Library begins to sing out:

  • Beware the Google-killers. Premium content aggregators have little choice but to follow the context of their content's use, wherever it may lead them. Working with a powerful and well-placed channel partner like Microsoft that provides built-in content purchasing channels is a far easier path for them to take than to wrestle with contextual content sales via open Web search engines that have no proprietary standards to leverage. But what happens when Microsoft begins to phase in "Google-killing" search technology into the Office content integration picture? Content vendors may then find themselves with far less leverage  in defining the value of their content in specific contexts versus other sources, and with diminished ability to define that context. By propping up Office suite sales, publishers are helping Microsoft to buy time to close down competitive distribution channels for professional content.
  • Beware the value of Office. It's omnipresent and defines much of the day-to-day workflow of today's professionals. How can you argue with success? But in fact, much of the content being created today by professionals does not fit well into the standalone PC-based world of Office content authoring tools. Office offers few content collaboration tools that enable effective collaboration between networks of authors. Emailing Excel spreadsheets is like waiting for the Pony Express to show up, and yet this kind of inefficient knowledge sharing still dominates most institutional publishing thanks to Office. Simpler solutions such as weblog authoring tools and collaborative workflow tools such as iManage are much more cost-effective in delivering bottom-line content publishing value than investing hundreds of dollars per person in overpowered, general-purpose standalone software. Habits are hard to break, especially when they are so easy to maintain on many levels, but organizations that have taken up the "No Powerpoint" chant already may take up the "No Word" chant when they realize that organizations that have "kicked the habit" are seeing bottom-line results from improving how individual publishers reach their audiences.
  • Beware neglecting other integration channels.  The ability to integrate vendor-supplied content into portals and web-based authoring tools via capabilities such as Web services is still in its infancy. Microsoft's efforts with Office come at a time when publishers have the opportunity to explore how they may be able to accomplish similar goals without reliance on Office and Windows "Longhorn" rights management hooks, and so the timing is at least curious. The danger is that major publishers and the institutions that they serve may be tempted to defer figuring out what to do with content commerce and rights management via Web services and cut off opportunities to integrate with solutions that ultimately may provide far better opportunities to increase the contextual value of their content. But given how many commercial publishers are floundering to come up with enhanced value propositions, the allure of Microsoft's well-timed efforts may be difficult for many to overcome - even if it may weaken their opportunities for long-term growth.

Office is still in the building, and as long as it is, most institutions will be glad to sing Microsoft's tune and gain some important short-term gains with integrated commercial content. But in the long run, this may be a comeback act that winds up hurting its content partners as much as it helps them.  Enjoy it while it lasts, but at some point it will be better to let Office leave the building on its own and to strike up the band with some newer tunes.

- John Blossom

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