When Microsoft, Yahoo and Google came out with their respective small business sites a couple of years ago, it looked like “lights out” for traditional premium providers like Web.com (formerly Web Site Pros). But the sites weren’t that compelling, and in fact, web.com (and others) continue to grow and add services.
Now the search engine giants are coming out with version 2.0. Microsoft’s service – Office Live Small Business –looks pretty good (despite the confusing, tongue twisting name).

As New York Times critic David Pogue notes in a review of the service, this version is browser independent (i.e. not tied to Internet Explorer). Moreover, users can now sign up now for a variety of free services, without having to use a credit card. Among the free services are 500 megabytes of storage, automated Web design, Web site analytics.

But Microsoft now charges for formerly free domain name registration and extra email address. It also charges for a variety of other service, such as a Constant Contact –like email marketing system that includes newsletter design and address database. There is also an online store that includes an online shopping cart, integration with eBay, and auto-calculation of shipping and taxes. That new service is $40 a month, plus $30 monthly PayPal fees for merchants that want to charge online. NYT’s Pogue pronounces the store “terrific.”

The site also integrates Microsoft’s SEM solutions on MSN and Ask, which Pogue finds “goofy” since he thinks customers would probably rather have access to market leaders like Google and Yahoo. To me, it is directional advertising. Every additional customer is a valued customer.