Microsoft overhauls Office to reach for the cloud

Microsoft has unveiled a new version of its Office suite of programs in its largest-ever overhaul of the aging workplace software it relies on for most of its profit.

The revamped Office, touted by Microsoft chief executive Steve Ballmer as the most ambitious version so far, comes with a sleeker, slimmed-down interface designed for use with the upcoming Windows 8 operating system.

It makes use of cloud computing by storing documents and settings on the internet by default, and is compatible with touchscreens. It also incorporates Skype, the video-calling service Microsoft bought last year.

The development comes as Apple and Google make inroads into the workplace, Microsoft’s stronghold for many years.

“The Office that we’ll talk about and show you today is the first round of Office that’s designed from the get-go to be a service,” Ballmer said. “This is the most ambitious release of Microsoft Office that we’ve ever done.”

Microsoft has a lot riding on the 15th version of Office. The Office applications — Word, Excel, PowerPoint, and other tools — are used by more than one billion people around the world.

The full version of Office 15 is expected to be available in early 2013.