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Microsoft’s top technical executive, Ray Ozzie, has recently said that Google success in finding in advertising revenue “was a wake-up call within Microsoft”. But he said Microsoft plans to do more than simply mimic Google by rolling out Web-based versions of desktop programs or following its particular search and advertising model.

Instead of jumping belatedly into the fray with Web-only programs, he said Microsoft will pursue a mix of software loaded on PCs and Internet services that also work with the growing array of mobile devices, a strategy he called ‘’software-plus-service'’.

He said he sees free, Web-based, ad-supported software as a way to extend Microsoft Office’s reach, but gave no specifics. ‘’Advertisers do want a targeted audience,'’ he said. If Microsoft can deliver it, ‘’I don’t see a reason why advertisers won’t move'’. What comes next? Only time will tell.