SAN FRANCISCO (AP) — Microsoft’s retooled version of itsOffice software is hitting the market as
the company tries to extend oneof its key franchises beyond personal computers.Tuesday’s debutcomes six
months after Microsoft previewed the new-look Office, whichincludes popular word processing, spreadsheets
and email programs.Therevamped Office boasts touch controls, just like the redesigned versionof the Windows
operating system that Microsoft Corp. released threemonths ago. The company, which is based in Redmond,
Wash., is trying toensure that its products retain their appeal at a time when peopleincreasingly rely on
smartphones and tablet computers instead of PCs.YetMicrosoft still isn’t trying to get Office on the largest
number ofdevices possible. Office 2013 doesn’t include an option that works onApple Inc.’s iPhone and iPad
or smartphones and tablets running theAndroid software made by Google Inc. That leaves out the majority
ofsmartphones and tablets sold in the past two years.The companybelieves Office 2013 is currently best
suited for Windows devices, saidChris Schneider, Microsoft’s senior public relations manager for
Office.Microsoft is trying to become a bigger player in the mobile market withits own operating system for
smartphones and tablets.Office 2013 is the first overhaul of the software suite in three years.The bundle of
programs has become a staple on desktop and laptop computers, providing a rich vein of revenue for
Microsoft.Thecompany has reaped most of its Office sales from licenses allowingbuyers to install the suite
of programs on individual machines, a verylucrative strategy. The Microsoft division anchored by Office
generatesabout $24 billion in annual sales, accounting for nearly one-third ofMicrosoft’s total
revenue.Revenue in the Office division fellfrom the previous year during the three months ending in
December,partly because many prospective buyers have been awaiting the latestversion.In one of the biggest
changes, Microsoft has tailoredOffice 2013 so it can be peddled primarily as a program that’s used
overInternet connections. All information is automatically stored inMicrosoft’s data centers, allowing for
access to the same material onmultiple devices. The content also can be stored on the hard drives
ofdevices.Microsoft is offering Office 2013 in a $100 annualsubscription package, called 365 Home Premium,
which includes onlineaccess on up to five Windows devices or Mac computers. The fee alsoprovides 20
additional gigabytes of storage on Microsoft’s SkyDrive tosupplement the 7 gigabytes that the company gives
away to accountholdersfor free. Subscribers also will get 60 minutes of free internationalcalls on
Microsoft’s Skype service for Internet phone calls and videochats.College students and teachers will be able
to buy Office2013’s online product for $80 for four years, which works out to about$1.67 per month.The
online push reflects Microsoft’s recognitionthat people want access to documents and email on
whateverInternet-connected device they might have, wherever they may be, whetherit’s at work, home or a
store while running errands."The technology needs to be able to move with you," Schneider
said.It’sthe first time that Microsoft has tried to persuade consumers that arecurring online subscription
is the best way to buy and use Office.Microsoft had previously sold online Office subscriptions primarily
tosmall businesses.Office will still be sold under a one-timelicensing fee that allows the software to be
installed on a singlemachine. The fees start at $140.Microsoft’s decision to reshapeOffice into an online
service makes sense, although it may takecustomers a while to sign up for the subscriptions, said Edward
Jonesanalyst Josh Olson. He suspects major companies that rely on Officeprobably will be among the last
users to make the switch."This is a good innovation, but the uptake may be slow to begin because it is
so different," Olson said.Copyright 2013 The Associated Press.