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The product comes in three versions: - Live Basic, Live Collaboration and Live Essentials. The first version will remain free. The other two flavours will be free during the beta period but Microsoft will be charging $29.95 a month when they are officially launched.

Office Live Basic allows a business to find a domain name for their site and create their own website from simple templates. The service also offers the use of five email accounts tied to the domain name and provides tools to analyse visitor traffic. Presumably, the tools will be tied in to the Microsoft AdCenter keyword advertising service due to be launched later this year, enabling

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AdCenter advertisers to monitor and fine tune their messages to their web sites.

For the more involved business, there is the Microsoft Live Collaboration service. As the name suggests, Collaboration provides a pseudo-intranet platform for smaller business that allows them to manage their employees and customer records all in one place. According to Microsoft, subscribers can set up any number of password protected areas, known as 'shared sites' to allow groups of employees to collaborate and share information on particular projects. While Microsoft would not claim that Live Collaboration is a full function HR or CRM platform, it does allow the storage of key personnel or customer data online, to be available both inside and outside the office.

Thrown in with the package, Microsoft Office Live Collaboration customers will get 24-hour phone, e-mail, and billing support.

Online Essentials is a combination of both Basics and Collaboration offering both the web site management tools and the intranet services in one package.

The service is currently open to US businesses only at present and by invitation. More details can be found at the Office Live website.