Microsoft pushing its Cloud offerings with Exchange 2010 beta online!

Exchange 2010 is the first product to be launched as part what will be called Office 2010, the office products suite which will later include its near- universal word processor and spreadsheet applications. It will also be the first version to be built with “cloud computing” front of mind. A growing trend in technology, this is a broad term for storing and accessing more computing power and applications on corporate servers off company premises.

Email is a key part of Microsoft’s office business unit, one of the Redmond, Wash.-based company’s two largest business units.

Microsoft has already begun to allow customers to store and manage their corporate email servers on Microsoft’s own servers. Rajesh Jha, a vice president, said Exchange 2010 would be the first generation of the email product, which was designed both for online and on-company-premise hosting.

The drive to offer more hosted email comes as Microsoft, whose software is installed on over 90% of the world’s personal computers, faces growing challenges from free and low-cost Web-based alternatives to its products from companies such as Internet giant Google Inc. (GOOG) and others.

While Microsoft needs to respond to this challenge to protect its revenues, it must do so while protecting its highly profitable desktop-based software franchises.

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