article by JOHN MARKOFF here.
SAN FRANCISCO, Nov. 8 - Microsoft must fundamentally alter its business or face being at a significant competitive disadvantage to a growing array of companies offering Internet services, according to memorandums written by two of the company's top executives.
Last week, Microsoft, the largest software maker, announced that it would offer two new Internet services - Windows Live and Office Live - in response to companies including Apple, Google, Salesforce.com and Yahoo that have created new businesses based on direct Internet connections with users.
In separate memos distributed internally to senior executives on Oct. 30, Microsoft's chairman, Bill Gates, and a chief technology officer, Ray Ozzie, warned that the new "Internet services" era could be significantly disruptive for the company.
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