Microsoft today signed away custody of its third-born child: All the file formats for Office Word, Excel, and PowerPoint are now under the custody of ECMA, an independent standards body. ECMA has accepted custody by declaring OpenXML an official ECMA standard and has gone one step further by putting OpenXML on a fast track to be approved as an ISO standard.
What does this mean? It means no single company controls the internal format office documents. There no long is an internal format, it’s all open and available for anyone. Microsoft doesn’t control the standard any more than Adobe, IBM, Novell, Apple, or any other company.
Why would Microsoft sign away custody of its third-born child and second-biggest cash cow? (my apologies to all children and cows for mixing metaphors here) OpenXML certainly gives Office competitors a big opportunity to more powerful and user-friendly products that inter-operate 100% flawlessly with Office. So what’s in it for Microsoft?
First, as an truly open standard, the the Office XML file format (ie: OpenXML) become a standard, a platform for building more powerful applications. So we’ll see a whole new wave of innovative applications built on top of this standard. From Wiki-companies to SAP and Salesforce.com, everyone can now add value and deeply integrate with OpenXML.
One of the most exciting apsects of OpenXML is that you can extend the format by embedding your own application-specific XML in it. At first they may seem counterintuitive: If companies can put their own extensions in OpenXML documents, doesn’t that take away from the openness of the standard? And the answer is no, quite the opposite: because even if you embed your own data in a format, that data will simply be ignored and handled gracefully by other applications.
The second way Microsoft may benefit from this is that it really blows away the Open Document Format (ODF is the Open Office XML format). ODF will continue to exist as Open Office’s native file format, and there will always be an army of open source purists who will have nothing to do with anything that originated from Microsoft.
ODF’s biggest weakness is that it was built from inside Open Office without much regard for exact backward compatibility with older Office documents. While a ODF’s 90% compatibility solution may have been good enough for some, that last 10% can be very, very annoying to customers. So for a while, both ODF and OpenXML will exist and ultimately the end-users will decide which standard comes on top. My guess is that they will prefer the backward compatibility of OpenXML, especially if companies like Adobe and Apple start building applications that compete with Office.
I am not sure if anyone really realizes how big this is for end-users. It means interoperability between competing applications. It means preservation under an open standard of all the information stored in literally billions and billions of documents. And it means deep integration with non-office applications in new, innovative ways. This is bigger than the Web 2.0.