The push behind Microsoft's Office moves

Full XML openness poses some competitive challenges, Yates acknowledged, including the ability for other software makers to build tools that can open InfoPath electronic forms, which for now are accessible only through the InfoPath client. But the benefits of broader support for Office applications outweigh any risk, he said.

"There are already lots of third-party [software makers] working with InfoPath, and this will just accelerate their work," Yates said. "The benefit to us in terms of having lots of complementary software outweighs the disadvantage of having lots of so-called clones."

"We believe our products are innovative and valuable enough to business that they stand on their own," he added.

Retaining control
While Microsoft will make available the underlying Office schemas, the company will retain control over how those schemas are developed in the future. That puts the burden on competitors to keep up with Microsoft's changes.

Stephen O'Grady, an analyst for research firm Red Monk, said it's worth noting that the XML announcement was prodded by negotiations with the government of Denmark. He said pressure from governments, particularly in Europe, is prodding Microsoft to take a more whole-hearted approach to embracing open standards, including XML. O'Grady noted Microsoft's ongoing negotiations with the European Union.

"If you look at the back-and-forth going on between Microsoft and the EU, that's a good indication of what's happening with Microsoft and standards," he said. "The EU has been very clear that they're focused on interoperability and standards. That's an indication of some of the pressure that is out there for Microsoft."

O'Grady added that governments, particularly in Asia, have been among the most significant adopters of open-source software such as Linux and the OpenOffice productivity package, a direct competitor to Office that includes full and open XML support.

"Just in terms of volume worldwide, we see a lot of traction in some areas for Linux desktop software and alternative productivity suites," he said. "We are seeing some inkling abroad that people are really starting to push back, and I think ultimately Microsoft is feeling some pressure."