Microsoft has announced that it will retire Office Online Server (OOS) by December 31, 2026, as part of its plan to focus more on cloud-based services powered by Microsoft 365 and Copilot.
Office Online Server, which allowed organizations to host browser-based versions of Word, Excel, and PowerPoint on their own servers, was designed for companies that preferred to store their data locally. It gave users access to web-based Office apps without depending fully on the cloud.
However, Microsoft says that maintaining separate infrastructure for on-premises web apps is no longer practical as technology continues to evolve. The company is now concentrating on cloud-first solutions, which make it easier to integrate artificial intelligence (AI) tools such as Microsoft Copilot.
“We want to modernize productivity experiences by focusing on cloud solutions that can deliver faster updates and smarter AI-driven features,” Microsoft said in a statement.
Even as it plans to phase out Office Online Server, Microsoft emphasized that it is not abandoning all on-premises users. Other products like Exchange Server and SharePoint Server Subscription Edition will continue to be supported and improved.
Recently, the tech giant launched a survey to gather feedback from IT administrators on whether they would like Copilot AI features added to on-premises Exchange Server systems. The survey also seeks opinions on data handling and compliance, including the possibility of sending limited data — such as logs or metadata — to the cloud for AI processing while keeping mailboxes stored locally.
This shows that while Microsoft’s main focus is on cloud innovation, it is also exploring ways to bring AI benefits to hybrid setups that mix both on-premises and online solutions.
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