Redmond Goes Red in Tooth and Claw

In a groundbreaking announcement, Bill Gates and Ray Ozzie effectively tore up Microsoft’s strategy of “thick client” dependency and switched direction Webwards. Cash cows Windows and Office will have “live” versions supported by advertising and subscriptions for premium services.

It seems the client (desktop) applications of the famous software will still be produced, but with frequent updates and in more fluid versions. While no-one will criticize Microsoft for trying to protect its revenue base, the question begged here is whether the company can sustain a dual approach, with a leg in both camps. Could trying to have it both ways be an effort too far?

Yahoo News reports : “[Microsoft] would deliver many of its key products and services online, some supported by advertising, as well as by selling subscriptions or licenses for software installed on computers. 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’s Chairman and Chief Software Architect.

Web 2.0 guru Tim O’Reilly said : “[Microsoft] clearly gets where the focus of the competition needs to be. 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.”