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Microsoft feels the heat, mulls free, ad supported desktop software

CNET is running an article on how Microsoft is considering offering free desktop applications, supported entirely by ads. This is the clearest indication so far of the software giant feeling the heat from Google and Yahoo and of their willingness to accept the challenge head on. Microsoft's core strength is in the desktop business, and if they manage to integrate the desktop with this online model, they very well might be on the verge of a" disruptive wave".

Windows LiveWindows Live, is their first step in that direction (although technically MSN was supposed to be that). But as noted earlier, they clearly need to take the battle to the desktop where they can kick butts of the likes of Google anyday.

The CNET article also talks about AdCenter (code named Moonshot), unveiled almost 8 months back, and Microsoft's reply and more to Google AdWord.

Comments

At the rate that Google is coming up with new applications, I would not be surprised if they come up with a web service or software that compete directly with Microsoft Office and could output files in compatible formats. The Office Suite is Microsoft's most profitable product and it would suffer a big blow if Google went in that direction

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