Microsoft’s Online Push

WSJ writes about a memos by Ray Ozzie and subsequent email by Bill Gates:

Microsoft Corp. Chairman Bill Gates has endorsed a radical reshaping of how his company develops software and services, citing an internal memo that says much about the challenges Microsoft faces, and underscores the rise of an emerging technical leader at the company.

In an email dated Oct. 30 sent to top Microsoft executives and engineers, Mr. Gates said the software giant needs to better address technologies and trends that are fueling a new wave of money-making on the Internet. “The next sea change is upon us,” Mr. Gates wrote.

The core of Mr. Gates’s email, which was examined by The Wall Street Journal, is a memo from Ray Ozzie, Microsoft’s chief technology officer, who describes some of Microsoft’s missed opportunities and also tips a hat to companies such as Google Inc., Inc., Skype Technologies SA and other start-ups that have pioneered Internet services.

The coming “services wave” will be very disruptive, Mr. Gates writes in his introductory email. “We have competitors who will seize on these approaches and challenge us — still, the opportunity for us to lead is very clear.”

Dave Winer has full text of the memo and email.

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Rajesh Jain

An Entrepreneur based in Mumbai, India.