Internet news July 29, 2006

The beast of Redmond’s new chief software architect, Ray Ozzie, has been sharing his thoughts with leading analysts. And he’s declared that Microsoft will be concentrating on the sort of Internet-based services we’ve already seen with the Windows Live Mail beta.


“In a previous era – in the PC era – Microsoft would naturally begin with a PC mindset,” Ozzie opined. “We’re in a new era – an era in which the Internet is at the centre.”

Microsoft was, of course, initially slow to spot the Internet’s potential. It nearly lost serious ground to Netscape before stomping its mark all over the sector with Internet Explorer.

Under Uncle Bill, Microsoft also made its software more Internet-friendly through its .Net initiative.

Now Windows Live with its mail and search centric capabilities will become the hub of Microsoft’s business, Ozzie revealed.

There’s little doubt which businesses Microsoft is now jealously trying to oust. It’s aiming at Google and Yahoo!

To try to catch up, the company has been investing heavily – with a consequent rise in costs. One analyst, Rick Sherlund from Goldman Sachs told the FT that despite Microsoft’s efforts – “They’re never as fast as you’d like.”

The INQ wonders if Microsoft is still missing the real threat – Skype. It’s software which everyone is installing on their PCs.

Skype already offers an impressive IM (Instant Messaging) facility that puts Messenger to shame. What happens if eBay starts putting extra facilities into Skype – just as Microsoft has done with Windows?

That could seriously undermine Microsoft’s position – and it’s Internet based.

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