Microsoft Corp., the world's largest software maker, on Tuesday announced plans to deliver many of its key products and services as online services as well as selling subscriptions or licenses for software installed on computers reports Reuters.
"These new offerings demonstrate how software is evolving through the power of services in ways that enable more dynamic and relevant experiences for people", said Bill Gates, Microsoft's chairman and chief software architect.
Windows Live and Office Live will give users some of the basic features of the software giant's two most-profitable products, but without the complexity of installing and maintaining the software in computer hard drives.
"We are trying to put a 'services plus software' mentality into many many of the product groups inside Microsoft," said Bill Gates.
Microsoft also said it planned to fold many well-known products in its MSN division into a new brand called Windows Live. The move will combine its instant-messaging service, a new online e-mail service replacing Hotmail, Web security, data storage and other features, all available via the Internet.
The software giant is looking to defend its mainstay Windows and Office software franchises by borrowing from ideas used by challengers such as Google, Salesforce.com, WebEx, Yahoo Inc. and scores of start-ups.
"(Microsoft) clearly gets where the focus of the competition needs to be," said Tim O'Reilly, publisher and software design guru.
"There are going to be some fabulous new services. But whether they are built by Microsoft or by Yahoo or Google or Salesforce remains to be seen," O'Reilly said.
"Microsoft 'gets it' - these should be great new applications for them," Rick Sherlund, software analyst at Goldman Sachs, said of the planned new Windows Live and Office Live services. He added, though, that while these services were unlikely to "cannibalise" Microsoft's sales of its core desktop computer software reports MSNBC
