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Microsoft to expand services business analysts worried about the impact of income

November 2, according to foreign reports Microsoft has been talking through the provision of services to accelerate the development of its business, but some analysts worry that the pace of competition and Google may make Microsoft a very profitable business model is affected.
Tuesday morning, Microsoft Chairman Bill Gates and the company's service department Executive Ray Ozzie for an existing software product line announced a new online service plans.
Analysts speaking, the move may be necessary, it can help to better deal with the threat of Microsoft's competitors, these competitors offer similar online services and Office.
However, depending on how Microsoft's implementation of the new service strategies, new service models and the company may also be available, and very profitable business model to generate competition.
Research firm Gartner analyst Tom Bittman said: "The question is not how you fight Google, the question is how you go against Google's model.
Microsoft is ready to be forced to compete with Google, and forced its own business model to compete. "
Bittman, who fear that any network service from Microsoft could affect the company's own software business sales, such as a huge revenue to Microsoft Windows and Office.
Historically, most of Microsoft's MSN service comes from its department, the department is largely customer service center. But Microsoft also have the opportunity to provide a very clear business networking tool.
In September, Gates said in an interview that the company will continue to buy a lot of server-centric software, and some of the software functions can also be achieved through the service mode. He said that Microsoft has a pilot service mode on the Exchange e-mail software and its SharePoint software.
He said that most of the software are limited to the service provided by Microsoft more basic, often on a free product.
Gates said: "Our service began relatively inexpensive, does not function very rich functionality of our server software is quite rich us.
These two models together, we give you the option, you can choose a feature-rich server software, you can also select a simple service. "
Bittman believes that Microsoft needs to do, but he is a profitable software manufacturers can achieve this transformation expressed doubts.
He said: "The large, high-profit software model to compete with the large amount of profits less advertising models do it are two different business models?."
But Microsoft will serve as a kind of response to two important challenges solution: a service model that can deal with Google, Salesforce.com and other companies, in addition, Microsoft provides service packs existing approach compared to the service mode You can also upgrade the software more quickly.
Microsoft CEO Steve Ballmer said: "We need to provide some of our products and related services, so we can make adjustments to the product cycle of the market situation, the time may be six months, or nine-month period . "
Microsoft is ready to adjust service model has been brewing for some time. In July, the financial analyst meeting, Microsoft's head of several departments had been talked about in their respective departments to implement service models topic. Eric Rudder head of Microsoft's server and tools division, said the acquisition of FrontBridge services is to be provided on the basis of the existing software.
Information for workers in sectors Jeff Raikes said that with Microsoft's entry into the business software market, the role of the service will be more obvious.
Even Windows also add elements services. As part of the fight against piracy, Microsoft last year launched the "Windows Genuine Advantage" program, in order to download Microsoft's products, Windows users need to verify the authenticity of the Internet. In order to promote the implementation of this project, Microsoft has increased the number of network free products.
New products in the market, Microsoft is also playing card services, such as antivirus software, Microsoft is testing its OneCare antivirus software. The software giant hopes that this product can pay service mode for Windows machines escort.
It is unclear, Microsoft is providing these services themselves, or and external partners together to provide these services.
Another issue is whether Microsoft will serve as a supplement to existing product model, or open another way, the introduction of new software?
Bittman said: "Look at how quickly the MSN Spaces service to grow, you will know that in the battle with Google, Microsoft can win, but in the end, this means that Microsoft's failure, unless there is a miracle could happen."
Bittman believes that to win market share and generate a good revenue there is a difference.
He said: "Windows and Office brought huge monetary gain but, MSN platform to bring a lot of revenue yet I think that's the point.?."

 

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