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Microsoft Introduces Web Services, Competing With Google and Yahoo

Microsoft introduced on Tuesday two new advertising-supported Web services, Windows Live and Office Live, as a direct response to the formidable challenges posed by its major competitors, Google and Yahoo.

The new online initiatives will deliver services to businesses and consumers directly via the Web, in many cases, without the need to download the applications to a computer. As such, they are an important step in extending Microsoft’s reach beyond the desktop PC to smart phones and other Internet-connected devices.

Bill Gates, the chairman of Microsoft, foresees an era of "live software."

The strategic shift also represents an acknowledgment by the company, the world’s largest software publisher, that the Internet has once again changed the rules of business, forcing Microsoft to scramble to catch up.

By JOHN MARKOFF

Full Story: http://www.nytimes.com/2005/11/02/technology/02soft.html?adxnnl=1&oref=login&adxnnlx=1130941414-7Tgz5cHe6M6cTIiLfhCkHg

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