Silicon Alley Insider is reporting that Microsoft are currently looking at the iPhone SDK and deciding what to build. The likeliest application suite to be built is Microsoft Office and in my opinion a version of the Windows Live suite is just as likely and this option would put Microsoft into direct competition with Google on the platform.
Microsoft is checking out the new iPhone software developers kit and is deciding what, if anything, they want to build for it, exec Tom Gibbons tells Fortune. One obvious possibility: A mobile version of Office, which Microsoft (MSFT) already offers for devices running its Windows Mobile operating system.
And unlike Office for Macs, the iPhone version might be a leader. Word and Excel for Apple's (AAPL) Macs have always trailed the Windows editions in features and usefulness. But because the iPhone's hardware and operating system are miles ahead of any phone Microsoft offers, Office for the iPhone could conceivably become the model for future Windows Mobile editions. Imagine that.