New Strategy Devised for .NET My Services

Microsoft is changing the business plan for .NET My Services to respond to a number of concerns, including a lack of clear revenue opportunities for Microsoft and its partners. Originally, Microsoft hoped to create a single Internet-based data store in which individuals could store their personal information (such as a personal calendar or home address) and make it accessible to friends or businesses. Although Microsoft still plans to create and host this data store, the underlying technology in .NET My Services will also be packaged as server software, allowing any other organization to host its own data store. The new plan offers a clearer revenue model for partners, and it is part of a realization among top Microsoft executives that packaged software, rather than fee-based services, will remain its most lucrative business for the near future.

Original Plan: Microsoft as Primary Host

According to the original plan for .NET My Services (formerly called HailStorm), users would pay a small monthly fee to store personal information—such as e-mail messages, calendar information, and credit card numbers—in Web-connected data stores hosted by Microsoft and a few carefully monitored Microsoft partners. Users could then grant permission to expose portions of this data via Web services.