Microsoft is set to launch a free online version of its widely used Office software next week, a watershed moment for one of its core businesses as it seeks to counter the rise of Google Docs and other online services.
The move comes nearly five years after Ray Ozzie, chief software architect, warned that Microsoft needed to embrace the internet faster. In a landmark speech, Mr Ozzie predicted that a “services disruption” was about to up-end the company's traditional software business and urged all its developers to treat the move as a matter of urgency.
Since then, according to industry observers, the company has moved steadily to add services that complement its software products but has been happy to leave it to others to set the pace in the move towards “cloud computing”, or the handling of applications online.