Microsoft admits potential of online services

3rd March 2007

During the conference, organized by Goldman Sachs, the chief architect of software Microsoft Ray Lee said that the success of Google in the area of advertising showed to the authorities of corporation the potential of on-line services. Greatest part of Googleâ€™s total income for the last year, which reached 10.6 billion dollars, consists of income out of online advertising, while Microsoft Corporation branch contributed only 2.3 billion. Thus, most part of the Microsoft income is provided by selling Windows and the Office package. According to the Morningstar analyst Trawne Tran, conquering of advertising market is just necessary for Microsoft because, if the corporation fails to do it right now, it takes the risk of being thrown out from advanced technology online business. The main task of Microsoft in this regard is the development of on-line services aiming not to entirely replace traditional software selling, but to be the addition to it. However, Ozzy believes that the launch of such services will induce the company to sacrifice some software. For example, small companies may choose Office Live service, with the help of which you can create Web sites with free domain names and several postal addresses in the i-net. Thus, youâ€™ll be able work at once on the same instruments, and to abandon the use of a corporate server based on Microsoft. But Microsoft is not looking for replacing the traditional software to online services, as opposed to the concept of "software as a service ", said Reutors.