Microsoft Corp. must change its business to better compete against an array of new competitors offering technology and services on the Internet, Bill Gates, the world’s largest software maker’s chairman, said in a recent memo to executives.
“The broad and rich foundation of the Internet will unleash a “services wave” of applications and experiences available instantly over the Internet to millions of users,” Gates said in the memo, which was sent to senior Microsoft executives in late October and obtained by Reuters and other media outlets this week.
Gates’ memo acknowledged that the giant software maker is facing increased competition from rivals such as Google Inc., Salesforce.com Inc., Yahoo Inc. and Skype Inc. that have built businesses by delivering services over the Internet.
“We have competitors who will seize on these approaches and challenge us,” Gates said.
Microsoft, recognizing that it needs to deliver more of its software technology over the Web, announced last week that it would offer users some of the basic features of Windows and Office over the Internet, without the complexity of installing and maintaining the software in computer hard drives.