• Reuters, Thursday, August 2, 2007 11 AM

Taking a page from the Google playbook, Microsoft on Wednesday said it would start offering a free, ad-supported version of Works, its basic spreadsheet and word-processing software, as part of a testing program with computer manufacturers.

The free Works would be a rival to Google Docs and Spreadsheets, which is Web-based, although Works is not. That means ads would be stored in users cache folders, refreshed each time a user logs onto the Web. Microsoft is yet to disclose its partners for the new software, which used to go for $40.

Desktop productivity software still has certain benefits. Web access still isn't universally available, and small businesses will like that free software will still be accessible on planes and in remote areas. Microsoft CEO Steve Ballmer said the company plans to embrace the "software as a service" movement without abandoning desktop software. A free version of Works falls into that ethos. It still remains to be seen whether Works can generate enough users to be of interest to advertisers. Microsoft did not disclose what kind of ads will run on the program.

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