A new desktop client for editing and posting digital photos and a long-rumored online file storage service both entered closed beta tests in June 2007. The desktop client, Windows Live Photo Gallery, is the latest example of how Windows Live is implementing Microsoft's "software plus services" strategy and competes against Google's Picasa client and service. The file-storage service, Windows Live Folders, could be useful for document sharing, but offers less space than competing services.

Photo Gallery: Software plus Service

Windows Live Photo Gallery offers essentially the same organizational and editing functions as Vista's built-in Photo Gallery application, which serves as an alternative to the software most digital camera makers bundle with their cameras. However, Windows Live Photo Gallery adds one major new feature: a link for users to upload digital photos to the Windows Live Spaces blogging site. It will be available as a free upgrade to Vista's Photo Gallery, and also as a free add-on for Windows XP—the first time Microsoft has offered Photo Gallery for that OS. The product is currently in closed beta, with release expected in late 2007 or early 2008.

Windows Live Photo Gallery joins several other Windows Live desktop clients that link to online services, including the following:

• Windows Live Mail, the replacement for Outlook Express (or Windows Mail in Vista), which can access any Hotmail, POP3, or IMAP account and includes offline message storage and an RSS reader
• Windows Live Writer, which allows users to create and edit blog entries offline, then post them to Spaces or a third-party blogging site when reconnected
• Windows Live Messenger, Microsoft's consumer instant messaging client (formerly known as MSN Messenger).

Most of Microsoft's Windows Live services are accessible from multiple Web browsers and desktop clients, and many are accessible from mobile devices; the desktop client software is meant to add functionality, not replace the Web browser.

These Windows Live clients, which will be bundled in a single downloadable suite in late summer 2007, exemplify Microsoft's new software plus services approach to Windows and Windows Live development, which were consolidated under Senior Vice President Steven Sinofsky in Mar. 2006. That is, Microsoft will add functionality to Windows between major releases by building out new Windows Live services, then developing and releasing free client software that links to these services. This helps Microsoft promote the benefits of desktop software, such as offline access and user interfaces that can expose more features, while simultaneously embracing online services, which are accessible from more types of devices in more locations.

These Windows Live clients also respond to Google's increasing presence in desktop applications. Google already offers a desktop search client, an IM client, and a photo-editing client and uploading service (Picasa), and combines these and other products in a downloadable suite. More recently, in June, Google began publicly beta testing Google Gears, a browser extension that will help third-party developers create Web-based applications that can function when offline.

Other Windows Live desktop clients could follow Photo Gallery's lead and replace applications bundled with Vista. In particular, Vista's built-in Calendar, Contacts, and Family Safety Settings tools currently have no integration with Windows Live services—a problem that is ripe for repair.

The gradually increasing number of Windows Live desktop clients begins to justify the brand "Windows" in "Windows Live," which would otherwise be a set of online services with no particular connection to Windows. Even so, there are still inconsistencies in the Windows Live strategy. In this case, some Windows Live desktop clients (Mail, Writer) connect to services from third parties, suggesting that Microsoft is placing a higher priority on making these clients useful, and a lower priority on driving users to its online services. Other Windows Live clients (Messenger, Photo Gallery) connect only to Microsoft online services, limiting their utility but helping boost Microsoft's online revenues. These inconsistencies could continue to cause customer and partner confusion about the Windows Live brand.

Live Folders Offer Online Storage

In June 2007, Microsoft began a private beta test of Windows Live Folders, a forthcoming free service that will let users store up to 500MB of files in an online repository hosted by Microsoft. This service is expected to enter public beta testing later in summer 2007 and go live by early 2008.

500MB is less than that offered by other online data storage services, such as Xdrive, which offers 5GB of storage for free; even most online mail services, such as Windows Live Hotmail and Google's Gmail, now offer 2GB or more. Even so, the service could prove useful for consumers who want to make a few important files accessible from any device with an Internet connection, and Microsoft might offer paid tiers with more available storage.

It's also unusual in that Windows Live has beaten Google to the punch with this particular service: Google is rumored to be working on a similar storage service, called G:Drive, but has not officially announced it.

Resources

Microsoft's software plus services strategy is covered in "'Software Plus Services' Strategy Explained" on page 33 of the May 2007 Update.

Vista's built-in applications for consumers, including Photo Gallery, Mail, Calendar, and Contacts, are covered in "Vista Bundles Consumer Tools, Applications" on page 7 of the May 2007 Update.

Windows Live Mail (formerly called Windows Live Mail Desktop) is covered in "Desktop Client for Windows Live Mail" on page 24 of the Apr. 2006 Update.

Windows Live betas, when available to the public, can be found at get.live.com/betas/home.

Google applications are offered at www.google.com/intl/en/options/.

The Google Gears home page is at gears.google.com.