Sun will launch Star Office 8, based on the open source popular software from OpenOffice.org. 

Star Office will see the light of day in retail centers now, both US and abroad which will put it on the shelf next to MS Office for about $99 - a small amount compared to the Microsoft product.

The software is not just entering the market, they are currently 50 million downloads strong making it a very promising contender for when it goes to the retail shelves.  Of course, those of us who have used the OpenOffice platform know that it is more than a competitor...it could be the thorn in the side that causes Microsoft to offer a lower price point on their basic office product.   Although Microsoft has continually added innovative products and features, they do not have a low cost entry level package - nor do they embrace the Open Document movement.  Open Document is a format (using XML for you techies) that allows different software packages to be able to use the same document.  Microsoft has always used a proprietary document format, making it impossible for other software (like OpenOffice or Star Office) to output into their format.

For small business owners, a universal document format could mean more than just short term savings when purchasing the newest office application.  It could mean more savings in ongoing upgrades as the competition will be stronger.  Even more so it could mean stronger showing from industry based software in an attempt to build larger markets.  For example, a company may have a hard time competing in a generic market against Microsoft or Star Office (or the ever free OpenOffice for that matter), however if they built a presentation and document package specifically for a single industry (let's say Insurance) based on the Open Document format, they could build a vertical market for their product.

Many things rest on the shoulders of the consumer (the more push for a universal format will force software companies to comply) and Microsoft which is currently the leader in office document software sales.  If Microsoft both sees a demand that can not be brushed aside and can keep their profitability, they may bend to the whim of the consumer...time will tell.

In the meantime, try OpenOffice.org - its free and there is a stable version that many people are using.  In fact the state of Massachussets recently booted the Microsoft format to the curb to allow the usage of the Open Document format...a real win for those who support a universal document versus the current proprietary options.

- bE