Microsoft today revealed its plans to add Web-based versions of Office to its array of hosted software for business, aiming to push it hosted software for businesses.

However, its traditional Office can be availed as a subscription-based service, the technology giant said.

The new product that brings together Microsoft Office, SharePoint Online, Exchange Online and Lync Online will be called as Office 365, Microsoft said in an event at the St. Regis Hotel here.

The new product reflects a big change for its computing arm. Del Bene has claimed that Microsoft designed Office 2010, which was unveiled earlier this year, with an aim to launch products that could be used both as online software and as traditional one

Chris Capossela, senior vice president at Microsoft told BBC News, said, "That is still the vast majority of the industry but it is moving rapidly. Office 365 offers the opportunity for Microsoft to reach more of those small and mid-sized customers who don't have the people to run their own IT services and now we can say you don't need them".

The drift from retiling software to running online services enables Microsoft to incur more absolute profit and revenue.