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How Ray Ozzie is Changing Microsoft

The October issue of Wired magazine takes a look at Ray Ozzie's work with Microsoft. To hear the article describe it, he's rebuilding the company from the ground up. A 70,000-employee company is quietly changing its ways by thinking of software as deliverable services that perhaps could be rented on a monthly subscription basis.

There are, of course, two major reasons for Ozzie's ascendancy at Microsoft: Gates and Ballmer. Ozzie is one of the few technologists anywhere whom they respect; they'd been trying for years to get him to join the company. Now he's carrying their hopes for the future, and it's a heavy load. Ozzie needs to move Microsoft from selling software in a box to selling lightning-fast, powerful online applications ranging from gaming to spreadsheets. The risks are enormous. The mission is to radically alter the way the company sells its most profitable software and to pursue the great unknown of so-called Web services - trading an old cash cow for an as-yet-to-be-determined cash cow. No, Microsoft doesn't think its customers will stop using PCs with hard drives and work entirely online, but the desktop era is drawing to a close, and that promises to force some painful trade-offs.

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