The Wall Street Journal and other publications are reporting that Microsoft has begun testing Albany, a subscription based model for their popular Office software suite as well as some other applications.

From the Microsoft PressPass:

With just a few clicks, “Albany” subscribers will be able install the whole package, which includes Microsoft Office Home and Student 2007, giving them the latest versions of Word, Excel, PowerPoint and OneNote for their personal and school projects; Windows Live OneCare to help keep viruses at bay and their computer fast and healthy; and Windows Live Mail, Messenger and Photo Gallery so they can connect and share with others. Albany also installs the Microsoft Office Live Workspace connector on the Microsoft Office toolbar, so users can save documents to their own dedicated online workspace and invite friends and classmates to collaborate and share.

This bundle is in contrast to other companies such as Google and Salesforce who have enjoyed growing success with so called “cloud computing” software that runs on their servers and only requires the user to access the program through a web browser.

Link: Wall Street Journal: Microsoft Tries Selling Software Via Subscription Based Model
Link: Microsoft PressPass: Microsoft Launches Beta of New All-in-One Service for Consumers