Microsoft still considers this software as a product.
Published:01-June-2006
By BR staff writer
Microsoft Corp's biggest challenge is embracing software-as-a-service business models, as embodied by rival Google Inc, chief executive Steve Ballmer told investors yesterday.
seeking to reassure Wall Street that Microsoft's surprise $2bn increase in R&D spending, revealed a month ago, is justified.
To paraphrase him heavily, the takeaway was: Yes, we're investing a lot, but it's riskier, long-term, not to do so. We have a lot of cool stuff coming up and, yes, we are also playing catch-up on a couple of fronts.
"We've got to make this transition, which our industry is making, from software as a product to software as a service," he said. "If you want to be a leading software company, you've got to be a leading software-as-a-service company,"
This transition is "not optional", he said, which could indicate enthusiasm or reluctance, depending on your point of view.