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Does Google Wave threaten MS Office?

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No, it's too distant from MS Office

I would say people are using MS Office for one of these reasons:

  • They're late/none-adopters who prefer to stick with what they know until practically forced to do otherwise.
  • They're not comfortable with reliability, security and accessibility of cloud-based applications.
  • They need the advanced specialist functionality that MS Office's
Eventually, all these concerns will disappear and MS Office will either be in the cloud or annihilated. That process is already under way. Eventually, people will all end up using something like Google Wave or Yoomoot. But Google Wave is not speeding up the process. For the people thinking of switching from MS Office to something else, Wave is too far from their mental framework to affect them (people using Office for reasons 1 and 2) or Wave doesn't have what they need (reason 3).

Office will die, but Wave won't be the murderer.