Ray Ozzie: 'Google woke Microsoft'

The chief software architect of the world's largest software firm affirmed that at the Goldman Sachs Investors Conference recently held in Las Vegas.

Google's success has helped Microsoft realize the potential of the online advertising market. " It was a wake-up call for Microsoft. It helped Microsoft realize that the huge revenue from this market could completely offset some of the revenue from the PC software market ," Ray Ozzie. affirmed.

" Obviously this is a very influential element not only for Microsoft but also the world IT industry. It helps us realize one thing advertising is an extremely powerful economic engine. ".

Advertising revenue contributes a large part to Google's "revenue pie" of $ 10.6 billion annually. Meanwhile, last year revenue from this field of Microsoft was only modest at 2.3 billion USD. Much of Microsoft's revenue comes from the Windows operating system business and Office office suite.

Toan Tran - Morningstar analyst - said: " Redefining Microsoft's competitive way in the world of web will be an important task for Ray Ozzie. The world is no longer the same. Microsoft does not quickly adapt, they will surely be left behind by their opponents . "

The biggest challenge for the new chief software architect of Microsoft is now to integrate the business of traditional web services and PC software while still maintaining competitiveness. strong with other stunned competitors like Salesforce.com or Yahoo.

" In my opinion, it will probably be difficult for big fish to eat small fish. Is it just a substitute ," Ozzie said. "For example, some small businesses will opt to use Office Live instead of investing in a server running Windows and Office."

Contrary to the views of proponents of "software as an online service", Microsoft believes that web services will be compatible, not an end to traditional PC software.

" Online service is a real opportunity, not just that we pull what's already on the Web ," Ozzie said. " Microsoft itself faces strong competition from rivals who have discovered entirely new business opportunities. I think the web service competition will be no different than the competition. What is the current PC software picture? "

Hoang Dung