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Bala Iyer

Thursday, July 29, 2010 2:13 PM
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MSFT's software plus services model

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I was reading a recent memo from Steve Balmer to MSFT employees. He talks about key priorities for MSFT going forward. The one thing that stood out for me was the software plus services model. While this was low on details, I'm assuming that this is a platform strategy. With this cloud (MSFT's term), users can access the same application on multiple devices. The same cloud could be used to develop and deliver apps. This is exactly what Google has already done. The current advantage for MSFT is in owning richer applications on the platform. Google is catching up fast on the both the quality and quantity of applications. MSFT may be willing to subsidize the apps through advertising and this leaves very little to differentiate with the business models. Once MSFT's cloud is operational, the competition will be back to features and functions.

Posted by Bala Iyer on Sat, Jul 26, 2008 @ 12:55 PM

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