Software Plus Services and Developers

As part of its software plus services strategy, Microsoft is enabling third-party developers to build applications that access data from its user-facing Windows Live online services and is rolling out online services specifically for application development. These services offer access to valuable data, the chance to attract Microsoft’s large base of online consumers, and lower costs through outsourcing. However, the technologies used to tap into each service vary, making it hard for developers to apply their skills across multiple services, and the instability of Microsoft’s consumer online strategy and other factors mean an uncertain future for some of the services.

Reaching Out to Developers

Microsoft’s success as a platform company is due in part to its legacy of providing inexpensive, easy-to-use development tools for those platforms and convincing a large number of independent developers and companies to use them.

In the last 18 months, Microsoft has accelerated its transformation from a software provider into a software plus services company, rolling out an array of online services for enterprises and consumers. Recognizing the historic importance of developers to its success, the company is taking pains to include developers in its software plus services strategy as well. It offers dozens of APIs and tools for developers to tap into existing consumer-facing online services (which generally use the Live or Windows Live brands) and is introducing new online services for developers, such as services for application-data storage.