Software Plus Services Strategy Update

A year after Microsoft introduced the phrase “software plus services,” its online strategy is taking clearer shape: many product teams have begun beta-testing online services, the sales organization is stressing the importance of services to reseller partners, branding has become more precise, and the company plans to open at least a dozen data centers to support online services. It’s also clear that instead of allowing services to uproot its existing software products, Microsoft will strive to add services in hopes of capturing new revenue without displacing old revenue streams. This should be welcome news to most classes of partners who resell Microsoft software today.

Additive Services Becoming Paramount

Initially, Microsoft’s latest online push looked like it might include three classes of services:

Stand-alone services, which would be accessible through any Web browser and would neither require nor bolster the functionality of any Microsoft software

Replacement services, which would be accessible through a Web browser and could serve as replacements for Microsoft software