Microsoft will launch two new Internet-based software services-Windows Live and Microsoft Office Live. Analysts reckon this move as a measure to deal with challenges from Yahoo! and Google.

According to foreign media's reports, Microsoft Chairman Bill Gates said by launching the "live software" the company is to turn software into service and build connection among all digital media, application and equipment.

Online advertising will be the sources of profit for the Internet-based software services at the beginning, but later Microsoft will offer a mode for paid users. In addition, Microsoft will present "Office Live" to promote development of small and medium-sized enterprises and help them manage a business online. According to Microsoft, Office Live can be used independently, or integrated with Office. Microsoft will test run the service in the United State at the beginning of 2006. The 28 million small companies globally, with less than ten employees will be Office Live's major clients.

Microsoft will also present Windows Live service, which integrates instant messages, emails and blogs. Through Windows Live users will be able to transmit data from one PC to another, and purchase Microsoft's security service to fend his PC off virus and malicious code. Microsoft said Window Live service will be launched alongside MSN.com service.

By People's Daily Online