Microsoft has introduced Office 365, its new offering in cloud productivity that brings together Microsoft Office, SharePoint Online, Exchange Online and Lync Online in an up-to-date cloud service.

Microsoft said that with Office 365, people can work together from anywhere on virtually any device, while collaborating with others inside and outside their organisation.

The new Office 365 enables small businesses, professionals and small companies with fewer than 25 employees to run with Office Web Apps, Exchange Online, SharePoint Online, Lync Online and an external website.

The cloud productivity offering introduces an array of choices for midsize and large businesses and government organisations, starting at $2 per month for basic e-mail, and includes option to get Microsoft Office Professional Plus desktop software on a pay-as-you-go basis.

The company also plans to expand Office 365 to include Microsoft Dynamics CRM Online, and debut Office 365 for education later next year.

Microsoft president of Office Division Kurt DelBene said, with Office 365, a local bakery can get enterprise-caliber software and services, while a multinational pharmaceutical company can reduce costs and stay current with the new innovations.