How to use "Connect to Office" in SharePoint 2010 Ribbon


Connect to Office makes it easy to work on a SharePoint document from an Office application by creating a direct http link to the document from your local file system. Connect to Office appears in the Library tab ribbon. To use it:
  1. Select a SharePoint site library and click the Library tab.
  2. Click Connect to Office, then click the Add to SharePoint Sites option. This connects the library to your Office applications by creating an HTTP link in the SharePoint Sites folder.
The SharePoint Sites folder appears in the Favorites list in your Windows file system as well as in your Office Favorites list, so you can easily access library documents from Word, Excel, or PowerPoint by using the File Open command. Or you can save new documents from these applications to SharePoint site libraries by using the Save As command. However, you must have Internet access to the SharePoint site to open and save content in the library. If you lose connectivity while editing a document, you may need to retrieve your latest version from the Office Upload Center and you must wait until connectivity is restored before saving content updates to the site library.

Benefits - Connect to Office is most useful when you can do all your updating in online sessions. You can easily create new Office documents and save them to the site library or to open another library document straight from your Office app. The beauty of this feature is that it lets you work with your SharePoint Office docs from within the apps in a way that makes it feel like you’re working with any other local file, even though the path to the document is a SharePoint http address. But, since the command operates over a live link, its use is optimal for connected scenarios.

Reference : Connect to Office or Sync to SharePoint Workspace - Which to do?

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