Microsoft unveils online Windows, Office services

SEATTLE (Reuters) - Microsoft, the world's largest software maker, on Tuesday unveiled a new initiative to deliver more of its software's features and services over the internet.

Windows Live and Office Live will give users much of the functionality of the software giant's two most-profitable products, but without the complexity of installing and maintaining the software in computer hard drives, Microsoft chairman Bill Gates and Ray Ozzie, a longtime software services pioneer who recently joined Microsoft, told reporters in San Francisco.

"Our dream is to deliver a seamless experience where all the technology in your life and business comes together in a way that 'just works' for you," Ozzie said in a statement.

Microsoft is facing increasing competition from competitors that have built businesses by delivering information and software-based services over the web such as Google and Yahoo.

Microsoft's MSN Internet division, created nearly a decade ago to compete against AOL, then the dominant player in the internet space, has up to now led the charge against Yahoo and Google.

The new initiative, however, spans across Microsoft's more traditional Windows and Office businesses and also reflects a recent company-wide reorganisation that put MSN under the Windows division and appointed Ozzie, chief technical officer, in charge of Microsoft's efforts to deliver software services over the Web.

Windows Live will integrate instant-messaging, a new online email service, security, data storage and other features, all of which will be accessible over the Internet.

Office Live will give smaller companies access to many of the features in Microsoft's collection of programs for business tasks, as well as the ability to maintain corporate email accounts and data.

Both Windows Live and Office Live will be supported in part by online advertising, Redmond, Washington-based Microsoft said.