Gates: We're entering 'live era' of software

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I think my prediction before the conference...

... wasn't too far off. My main point was that Microsoft can use services on the web as an adjunct to their main business, preserving their revenue streams and adding incremental sales.

They're not competing with anyone, except in areas like ads where they have to compete to gain revenues. And they're also not changing their essential business model.



Here's what I said, if anyone's interested:

Microsoft can use "the cloud" as a complement to its regular business.

There are certain obvious ancillary services, like updates, that can use the web's faster distribution.

There are certain complementary services like the email sorter based on exchange that can elaborate what the shrink-wrapped software provides.

There are certain alternative means of access to software that are more a licensing issue than a change in the business model.
What does Microsoft charge for loading an application on a server to be accessed from multiple locations?

In short, Microsoft can preserve its existing model and increase value to customers without putting their revenue stream at risk.
The way to look at the question is, upgrades need reasons. If using "the cloud" improves the likelihood of a purchase, then Microsoft is ahead.

Posted by: Anton Philidor   Posted on: 11/01/05 You are currently: a Guest | Members login | Terms of Use

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