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This story is from November 2, 2005
Microsoft goes 'live' on Web
Microsoft introduced on Tuesday two new advertising-supported Web services, Windows Live and Office Live.
SAN FRANCISCO: Microsoft introduced on Tuesday two new advertising-supported Web services, Windows Live and Office Live, as a direct response to the formidable challenges posed by Google and Yahoo.
The new online initiatives will deliver services to businesses and consumers directly via the Web, in many cases, without the need to download the applications to a computer.
As such, they are an important step in extending Microsoft's reach beyond the desktop PC to smart phones and other Internet-connected devices.
The strategic shift also represents an acknowledgment by the company, the world's largest software publisher, that the Internet has once again changed the rules of business, forcing Microsoft to scramble to catch up.
Bill Gates, Microsoft's co-founder and chief software architect, said Tuesday that new Internet-based technologies were creating an era of 'live software' that will change the software industry and transcend the boundaries of any particular computer or mobile device.
"Every five years or so we look at our strategy and make these big bets," he said. The new technologies, which are based on the idea of open Internet standards that allow many applications to be easily connected, is a potential threat to Microsoft because users will be able to select competing software products rather than be locked into large applications suites like Office.
Tuesday's announcement also laid the groundwork for Microsoft to compete more effectively against many smaller software competitors offering Internet-based business services, including time and billing management, customer relationship management services and Internet phone service.
Microsoft will have both free and paid offerings on Windows Live and Office Live, where services will be ad-supported.
NYT News Service
The new online initiatives will deliver services to businesses and consumers directly via the Web, in many cases, without the need to download the applications to a computer.
As such, they are an important step in extending Microsoft's reach beyond the desktop PC to smart phones and other Internet-connected devices.
The strategic shift also represents an acknowledgment by the company, the world's largest software publisher, that the Internet has once again changed the rules of business, forcing Microsoft to scramble to catch up.
Microsoft executives said that the company intended to take on both Google and Yahoo by making advertising-supported services the core of a broad new Web-based software applications business.
Bill Gates, Microsoft's co-founder and chief software architect, said Tuesday that new Internet-based technologies were creating an era of 'live software' that will change the software industry and transcend the boundaries of any particular computer or mobile device.
"Every five years or so we look at our strategy and make these big bets," he said. The new technologies, which are based on the idea of open Internet standards that allow many applications to be easily connected, is a potential threat to Microsoft because users will be able to select competing software products rather than be locked into large applications suites like Office.
Tuesday's announcement also laid the groundwork for Microsoft to compete more effectively against many smaller software competitors offering Internet-based business services, including time and billing management, customer relationship management services and Internet phone service.
Microsoft will have both free and paid offerings on Windows Live and Office Live, where services will be ad-supported.
NYT News Service
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