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INDUSTRY NEWS
Tempting the customer, the inimitable Microsoft way
03/27/2006, By financialexpress.com

Microsoft faces a potent challenge as software is increasingly built and distributed as a service on the Internet. The company recently offered the most detailed glimpse to date of its strategic response: embrace the Internet software model, add its own offerings and link the new technology to the coming version of its Windows Vista operating system.

Microsoft executives stressed that its Ajax toolkit will work with browsers and operating systems other than Microsoft’s. But the demonstrations at the conference by partners like MySpace, the popular social networking Web site, and the British Broadcasting Corporation’s Web site, showed the Ajax technology working on Microsoft Vista. The MySpace feature allows a user to put MySpace profiles of friends on the Windows desktop, while the BBC used an Ajax application on Vista as a gateway to the network’s programming, allowing for search, download or the sending of copies of programs to friends.

Microsoft has not yet profited from internet services nearly as much as rivals like Google and Yahoo, which have strong businesses selling ads on their sites. Microsoft competes with them not only on its MSN Web site, but is also developing online software services, Windows Live and Office Live, which will sell ads.

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