BEIJING, April 21 (Xinhuanet) -- Microsoft is offering an ad-funded version of Microsoft Works free to PC makers in some countries, though they don't get a cut of the ad revenue.

    Users who run the software see a small ad as they are writing their document or editing their spreadsheet. Although the program has the ability to update its set of ads online, today it runs mostly ads for Microsoft and a few partners, all of which ship with the product itself.

    The ad-funded Works falls into a category of several products the company is exploring, rather than a significant new source of revenue, said Microsoft Vice President Chris Capossela.

    Microsoft has been considering such a product for some time, with many inside the company arguing that Microsoft could make significantly more money for Works by selling advertising than it gets in revenue from computer makers for the product.

    Microsoft remains cagey on the details of where you can find Works SE (which stands for Sponsored Edition). The company has been testing Works SE in 5 countries: The United States, France, Canada, Poland and the United Kingdom. It is available only through select computer makers and Microsoft won't say which computer makers those are.

    Capossela put Works SE in the same category as several other new approaches, including the Albany subscription service that Microsoft detailed this week. Also in that camp would be the prepaid Office cards that Microsoft has been selling in some countries for more than a year now. 

    The one area where Capossela said Microsoft has seen significant sales is the download and purchase of Office over the Web. Customers either download a trial version of Office directly from Microsoft or get it with a new PC. After 60 days of use, they are prompted to buy a full version from Microsoft or a partner (partners typically sell the product cheaper than Microsoft).

    Microsoft was not quick to seize on selling directly over the Web, Capossela said. "We're late," he said. "If you look at Symantec and Intuit, they have huge businesses here."

    (Agencies)