Microsoft opens Windows for the web

Microsoft plans to use the internet to extend its software beyond the PC to devices such as mobile phones and handhelds under an initiative called .Net.

The strategy involves a shift from selling boxed software to offering software as subscription services over the internet. The first product, which uses the open XML standard at its core, will be the Windows .Net 1.0 platform, due to be released next year.

Bill Gates, chairman of the software giant, said Microsoft is "on the brink of a new computing revolution" as he outlined the strategy at a launch event at the company's Redmond, Washington headquarters. Chief executive Steve Ballmer said Microsoft is "betting the company" on the initiative.

Microsoft .Net services, previously known as Next Generation Windows Services, will be offered to home users, corporate users and the developer community. The Redmond giant wants to turn the internet from a read-only medium to a more interactive experience using not only the PC but any device such as mobile phones, handhelds and slate computers.

In addition to Windows .Net 1.0, products including Office .Net and Visual Studio .Net are in the pipeline.

Microsoft expects the strategy to increase revenue in the long term, but would not explain the financial implications of moving from a software licence-based model to a subscription-based one. Ballmer also said the shift to a subscription-based model would help eradicate software piracy.

But Ballmer stressed that the change is not going to happen quickly. "We are going to sell lots of copies of Windows and Office for years to come," he said.

While the Microsoft announcement was long on vision yet short on details, it did emerge that XML is at the core of the metamorphosis. Both Gates and Ballmer stressed that the company would not add extensions to the open standard to make it difficult for others to offer competing and complementary products.

Quite the opposite, in fact. Both executives stressed they are actively seeking partners in this venture and would be taking their message out to the developer community as early as next month.

Microsoft's plans to integrate its products more tightly in the future than today demonstrates that it is not taking any notice of the fact that it could be broken up by the US courts. That action has been postponed for a least a year, and Ballmer repeated his oft-said statement that the company is confident it would win the appeal against the breakup.