In order to enable easy access to its cost-effective business productivity software, Microsoft launched its online services in India.

Starting at $2 (about Rs 100) a month, the service will allow small and medium business and enterprise customers to access Microsoft's e-mail, collaboration, conferencing and productivity capabilities online.

Customers can access the suite directly from www.microsoft.com/india/onlineservices and pay a use-based monthly subscription fee.

According to the company, savings are expected to be between 10 to 50 percent on IT costs.

HCL Infosystems, Infosys and Wipro are among the companies to market and offer value-added services around the Microsoft Online Services.

The launch is part of Microsoft's Software Plus Services strategy that aims to provide flexibility and choice of accessing and using software both on premise and off the Internet or as a combination of both.

"In today's competitive global market businesses need cost-effective technology that allows flexibility and adds value to their organisations," said Microsoft Business Group president Stephen Elop in a statement.

The services will be available in India from November 7.

According to a study by global consultancy Browne and Mohan, the market for hosted email will grow at a compounded annual growth rate (CAGR) of over 50 percent, with over 28 percent of email solutions to be run on the hosted model by 2012.