03 September 2007

Microsoft to offer software over the internet

Software and search engine giant Microsoft will make free software available this week that connects its Windows operating system to software delivered over the internet, the New York Times reports.

The strategy marks a notable development for the firm, which sells packaged software for customer use.

It is part of a strategy to protect its custom in the face of competitors, such as Google, who already offer software applications over the internet.

Kenneth Wasch, president of the Software and Information Industry Association, commented: "To the extent that the industry is moving toward an on-demand business model, it poses a threat to Microsoft."

The new Windows Live software includes a photo-sharing application, an electronic mail programme and a writing tool designed for people who keep web logs.

Microsoft is reportedly relying on its ability to utilise its base of over one billion Windows-based personal computers in its bid to maintain popularity.

It will offer some of its services, such as its photo-sharing and disk storage, for free while charging for services like its computer security technology.

Chief strategy and technology officer at Hewlett-Packard Shane Robison said: "I think Microsoft is going beyond search to a more sophisticated set of services. It will be a race and who knows who will get there first?"

Last month Google added StarOffice - Sun's rival to the Microsoft package - to its free software bundle.

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