Microsoft's Internet service provider Fasthosts has its violation of

Earlier this week, the U.K.-based ISP and hosting company started selling a version of Microsoft Office which it advertised as being "streamed to your PC". However, unlike true hosted software, or software as a service (SaaS), it requires the user to download software to their client PC.

"Fasthosts' Microsoft office 2007 product uses the SaaS model in that it is delivered and managed via the Internet," explained Mark Jeffries, Fasthosts' chief technology officer, on Thursday. Speaking with CNET News.com sister site ZDNet UK via e-mail, Jeffries said that a "full version Microsoft Office, identical to the boxed product, is downloaded using a streaming service and saved locally on a user's PC."

"After one initial download, further small downloads are made for additional features and updates. When functions are used for the first time, features are seamlessly streamed in the background. The software is validated when connected to the Internet," explained Jeffries.

Jeffries claimed that Fasthosts' version of Office was the result of a partnership "with Microsoft and established market-leading experts in the field of software streaming." However, Microsoft has disagreed with this claim.

"Fasthosts is a valued Microsoft partner who we have a great relationship with," said Michala Wardell, head of antipiracy at Microsoft UK, on Friday. "At present, streaming Microsoft products like office 2007 download  via the Web infringes our license regulations. Fasthosts has been informed of this and we are currently working with them to rectify this situation."

Fasthosts has not, as yet, responded to Microsoft's comments on the issue.
While Microsoft Office Ultimate 2007 has been clear about its plans to start offering some of its products on the hosted model, it has not officially launched any business productivity products along those lines. The hosted model involves software running from a provider's servers and being accessed through a browser, rather than being installed on the user's machine.

Generally run on a subscription basis, the advantages of the hosted model for the user include not having to pay for the software upfront, not needing as much processing power on the client side, and being able to benefit from updates being applied on the provider's servers rather than on the client machine. The disadvantages include a reliance on continuous
Internet connectivity and the fact that the software can end up costing more than a boxed version if used over a sufficient length of time.