As competition gets tough, Microsoft needs to adjust to the consumers’ needs, and that is the purpose of project “Albany” that has been launched in a private beta version and is expected to be officially launched sometime this year, the company unveiled on Friday on its website.

What is project “Albany?” Microsoft is currently experimenting with a subscription-based version of the well known Office product in the United States.

““Albany” is the codename for a new all-in-one subscription service of essential software and services consumers told us were most important to them,” said Product Manager Bryson Gordon, adding that they’ve managed to combine the productivity tools people need to organize their lives, security to help keep their personal information safe and online services that allows them to keep in touch with friends and family, all combined with the latest security and productivity software.

Subscribers will receive Microsoft Office Home and Student 2007, with the latest versions of Word, Excel, PowerPoint and OneNote, Windows Live OneCare, Windows Live Mail, Messenger and Photo Gallery. The project also includes Microsoft Office Live Workspace.

Gordon said “Albany” came as a response to consumers’ needs and wishes: “the overwhelming response was that they primarily want productivity and security software.”

“Albany” was described as the perfect solution for individuals with more than one computer, especially those with three PC’s, Gordon explained, which makes it ideal for families. “We’re breaking new ground by delivering Microsoft Office in combination with security and communication tools, plus ensuring our customers are on the cutting edge with the very latest versions. We found from our research that when you bring these categories together and keep them automatically updated, a subscription model makes a lot of sense,” Gordon added.