Microsoft Office 365, A Google Apps Killer?

Microsoft is working hard to supplant Google in its dominance in the online office suite arena. They have announced a beta program for Microsoft Office 365. The service includes Office Professional Plus, Exchange Online, SharePoint Online, and a communication service called Lync Online. Currently it appears this service is geared toward schools and businesses. It also looks like you'll need to install a copy of Microsoft Office 2010 Pro Plus to utilize the service. The service also looks as though it will be subscription based. Why can't Microsoft get out of their own way? Again, they've taken a great idea and made it so complicated that it will drive away more users than it attracts. First, requiring the installation of Office 2010 Professional Plus is simply ridiculous. Where's the convenience in an online tool when the first thing you need to do is install a huge software suite? Secondly, Microsoft has some of the most painfully convoluted licensing options I've ever encountered. This just piles on to an already despised Microsoft business practice of gouging organizations (and individuals) through licensing. No word yet on pricing. I admit that when it comes to office suites Microsoft Office is superior to anything else. That being said, it is bloated software and most users only use a very small percentage of the functionality in each program. Instead of an inexpensive, streamlined cloud service, Microsoft is offering its behemoth applications online in a subscription model. I'm not sure why anyone wouldn't go with Google Apps for the enterprise. It's free for up to 50 users, $2.00 per user per year beyond that. An administrator can have their organization up and running in minutes and there is nothing to install. I really try hard to pull for Microsoft in many of its initiatives, but sadly once again, Microsoft has missed the boat.