Microsoft today appeared to finally give away its golden goose: It announced that Office — the productivity suite that has set the standard for more than 20 years — is now free on iPads, iPhones and Android devices. On the surface (if you'll excuse the pun), this doesn't make any sense. Microsoft makes loads of money from selling Office software. The suite of apps accounted for about a third of the company's revenue in its last fiscal year, according to financial records. SEE ALSO: 5 Free Android Apps for Tethering The company appeared to toe the line between the need to spread Office to new platforms and preserve its revenue stream when it launched Office for iPad earlier this year. While anyone could download and install the apps, you could only create new documents if you had a paid subscription to Office. As of today, that's no longer the case. The new apps for iOS and Android — which remain free — let anyone create and print documents. You can hear the revenue from Office on mobile crash down to zero. The move makes sense, though, for two reasons: First, anyone serious about using Office will want it on a keyboard-first device — i.e. a laptop or desktop, where it costs money to use. And second, businesses will pay for it anyway. The second point carries the most weight: The reason Office makes so much money for Microsoft is because it's the gold standard of productivity apps, and businesses are more than willing to pay for it. Business customers account for 87% of Office revenue, according to one analyst quoted by the New York Times. On the consumer side, I also doubt that the remaining 13% will drop at all in the wake of the free mobile versions. If you live and breathe Office, the prospect of doing most of your work on an iPad isn't that attractive If you live and breathe Office, the prospect of doing most of your work on an iPad isn't that attractive. The iPad apps work well with touch, but the suite is inherently more useful in a mouse-and-keyboard setting. If you're doing real work with the apps, you'll need to pay. The reason this move is so smart is it means in those situations where you do need to work on — or even create — a Word or Excel document on a tablet or phone, you no longer have a reason to seek out an alternative like QuickOffice or Google Docs. People who might otherwise have sought out a competitor, one they might have even liked better, will no longer have reason to do so. Instead, they'll stay with Office, strengthening the suite's mindshare as the only productivity suite that matters. Sure, there'll be a few people who get themselves an iPad with a Bluetooth keyboard and call it a day, but anyone who really wants to do work will want to use Office on a laptop. And they'll pay for the privilege.
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