Mary Jo Foley has the buzz:
As the dust from Microsoft Corp.’s latest reorganization continues to settle, one thing is evident: Microsoft is intent on turning its long-term dream of selling software as a service into reality.
In fact, Microsoft already sells a number of such services, both paid and free, ranging from Xbox Live to MSN Spaces blogging service. Microsoft officials have hinted at other potential offerings in the pipeline, including both consumer and enterprise versions of the Windows OneCare hosted security services, as well as a hosted Microsoft CRM service, akin to what Salesforce.com sells today.
But there are even more Microsoft services in the wings that the company has yet to detail publicly. Among those closest to commercialization: A new small-business bundle of VOIP (voice over IP), instant messaging and data conferencing about which Microsoft has discussed privately with some of its partners, as well as a managed, high-availability Exchange Server offering.
Much more by following the link including the sticky problem of dealing with the issue of competing with Microsoft’s current partners.