Microsoft's .Net strategy to make its software ubiquitous and transfer its dominance from the personal computer world to other platforms, such as next-generation smartphones, could be delayed by its court battle.

In defiance of the court ruling in its antitrust case with the US government, Microsoft chairman Bill Gates said he is betting the company on the .Net platform, which he described as Microsoft's most important announcement since the launch of Windows.

"We need a common platform for new devices in the same way that Windows brought a common platform to the desktop," said Gates, who added that a common platform was necessary before the market for these devices, which include Pocket PCs, set-top boxes, mobile phones and game consoles, could explode.

The Redmond giant plans to deliver software that will XML-enable any device, support intelligent interaction with the network and .Net services, and serve as a foundation to bring a rich user experience to non-PC devices.

Formerly called Next Generation Windows Services (NGWS), the initiative will see Microsoft rework its entire range of software to turn programs into services accessed over networks.

In its antitrust trial it has been proposed that Microsoft should split into an applications company and an operating system company - a workable divide at the moment, but one which .Net would complicate.

Jon Collins, a senior analyst at Bloor Research, said the strategy blurs the distinction between applications and operating systems, and the court battle could delay the availability of .Net.

"I can't see anything concrete coming out of this strategy. If people wait for Microsoft to deliver the web experience in the way they plan, they'll wait a long time," said Collins, who added that Microsoft's software has often been late to market.

He was also critical of the vagueness of the announcement. "Microsoft says it wants to run the web, but it hasn't announced anything new to run it with."

Kirsten Ludvigsen, an analyst at IDC, said: "Microsoft has to some extent been successful in trying to make its software ubiquitous, particularly through deals with cable TV companies. But this has been missing an open source kernel that partners can tailor to their needs. The use of XML will make it more open."

Details of the technologies and services that .Net will deliver are so far scant. What is clear, however, is that web-connected products and services will rely on a set XML programming tools that Microsoft will make available to application developers.

Microsoft hopes to incorporate the .Net technologies in its next generation of Windows, the first release of which is due in 2001, but also plans to offer versions of the Windows platform without .Net services.

The software giant also plans to combine the .Net functionality with its own MSN online service, allowing consumers to create a "digital personality" and use smart services.

For the business market, Microsoft anticipates offering Office.Net, a future productivity and communications service, to allow the rental of applications on demand.

The company has also significantly expanded its bCentral small business portal with Outlook web services, enhanced commerce and a new customer relationship management service.

To transform the end-user experience, Microsoft is pitching technologies such as a Universal Canvas XML-based compound information architecture, natural user interface, integral digital media support and privacy-enabling technologies. A Dynamic Delivery system for secure and seamless installation, updates, roaming and offline operation is also in development.

To illustrate the potential, Microsoft demonstrated at the launch a smartphone using a wireless network to configure itself for a owner. Address books, calendars and preferences were automatically loaded from the internet once the device knew who was using it.

Click here for news from the .Net launch