Software major Microsoft on Thursday launched 'Online Services' in India, which will allow small and medium businesses (SMBs) and enterprise customers to access e-mail and conferencing solutions through Internet, for as low as $2/user a month.

"Customers can access a suite of products directly from the company website and pay a use-based monthly subscription fee, and thus manage their IT needs efficiently and lower their capex. We estimate their IT spend can go down 10-50 per cent," Microsoft Business Group President Stephen Elop told reporters.

The company has also partnered with HCL Infosystems, Infosys and Wipro to market and offer value-added services around the Microsoft Online Services, he added.

Companies are now looking at adopting technology like cloud computing as IT spends have been lowered in view of the slowdown. The model works well for SMBs which have smaller IT budgets.

Cloud computing is Internet-based development technology services, where common business applications are accessed from a web browser, while the software and data are stored elsewhere on the servers.

'Online Services' includes Exchange Online (for e-mail), Office SharePoint Online (portals and collaboration), Office Live Meeting (for conferencing), Exchange Hosted Services and Office Communications Online (for instant messaging).

It will be available in India from November 7, 2009.

The entire suite would be offered at about $10 per user a month, while on a stand alone basis, one would need to pay between $2-5 depending on the product.

According to a study by Brown & Mohan, the market for hosted email is expected to grow at a CAGR of over 50 per cent, while over 28 per cent of email solutions are expected to run on the hosted model by 2012.

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