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OneNote last week went completely free on the Mac and PC for consumers; OCR and handwriting recognition boost it in tight race

Microsoft Corp. (MSFT) is locked in a tight battle for dominance of the notetaking office software space. Facing it is the agile Redwood City, Calif.-based Evernote Corp. who is backed by $290M USD in venture capital funding. In its quest for dominance, Microsoft's OneNote last week made the leap from "freemium" to fully free across all platforms. The leap could tip the scales in what is current one of the most competitive niche software races.

I. Freemium Isn't Free

Microsoft got off to an early start, launching in 2003. However, it wasn't until the advent of the smartphone and tablet that it truly took off. Evernote, began in web app form, as an open beta in mid-2008. Today the pair are neck-and-neck, though, in the app space.

Originally OneNote was offered as a standalone software package for the PC, priced at $58 USD. Over time that price dropped and the software was slowly bundled into the great Microsoft Office bundle. Barebones mobile client versionsfor Windows Phone (since 2010), Google Inc. (GOOG) Android OS devices (since Feb. 2012), and Apple, Inc. (AAPL) iPhone (since Jan. 2011), and Apple iPad (since Aug. 2012) also became available for free.

Eager to best Evernote and other smaller competitiors Microsoft had dropped hints in recent months that it would take the app fully free in the PC space. In MarchMicrosoftlaunched a free variant of OneNote for Windows and OS X computers. That free app would be a key selling point of the12-inch Surface Pro 3 hybrid laptop/tabletwhich aired last May.

Throughout 2013 and 2014 Microsoft also offered OneNote PC clients with premium features unlocked to college students, via is Office 365 academic giveaway. Initially this program was limited to select partner institutions, butin September 2014 Microsoft extended it to cover all college students.

But until last week OneNote on the Mac or PC wasn't completely free. Microsoft charged OS X and Windows customers to unlock premium features, includingpage history/backtracking, Office file embedding, audio/video embed, audio recording search, and password protection on specific notebook pages.

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Amid Tight Race w/ Evernote, Microsoft's OneNote Goes (Even More) Free, Adds Fresh Features