In a leaked e-mail sent to top Microsoft employees,
Microsoft chief software architect Bill Gates has urged them to do
more to take up the challenge of competing in an increasingly
on-demand marketplace.
Gates said in his e-mail that a forthcoming “services wave” will
prove “disruptive”, and competitors will use it to challenge the
company.
Microsoft launched a range of on-demand software initiatives
last week, which covered web-based communications services for
consumers and small businesses and on-demand business applications,
including customer relationship management.
The leaked-memo-as-a-marketing-platform has been used by
Microsoft in the past either to promote the musings of its chief or
to highlight the way Microsoft aims to tackle key demands or issues
in the market.
And on-demand software services is now a key issue for the
company, with the likes of Google, Yahoo and others seemingly
making a play for Microsoft’s desktop customers with their own
on-demand offerings.
On-demand services allow users to benefit from applications
without having to run large software programs on their desktops,
while paying for software based on their usage rates.
A key issue for Microsoft is that many of its new-wave rivals,
like Google, are giving this type of software away free. So
Microsoft has to find a way to protect its existing business by
potentially adopting other revenue models, which could include
applications supported by on-line advertising, like some introduced
by Yahoo and Google.
Gates’ e-mail followed another leaked e-mail to senior staff
from Microsoft services chief Ray Ozzie, who is responsible for
Microsoft’s on-demand development. He said Microsoft’s business was
“at risk” if it didn’t do more to take advantage of online
advertising and services.
But it isn’t all doom and gloom at Microsoft. In an uplifting
conclusion, Gates tells staff “the opportunity for us to lead is
very clear – more than any other company, we have the vision,
assets, experience, and aspirations to deliver experiences and
solutions across the entire range of digital scenarios, and to do
so at a scale reaching users, developers and businesses across all
markets.”
Details of the memos were reported in The Wall Street
Journal.