Microsoft Rivals Say 'Live' Is 'Dead'Microsoft Rivals Say 'Live' Is 'Dead'

Microsoft Corp.'s rivals in delivering software as a Web service said Tuesday that the software giant's vision for what it calls "live software" is dead on arrival.

Microsoft Chairman Bill Gates on Tuesday unveiled the Redmond, Wash., company's strategy at a San Francisco news conference, saying that over time, virtually every piece of Microsoft software would be offered as a server or a service. Gates also previewed the company's first moves in the space with the unveiling of Windows Live and Office Live.

Ray Ozzie, one of Microsoft's three chief technology officers, joined Gates at the event.

"Bill Gates and Ray Ozzie announced a series of internet-based software services with 'Live' appended to some familiar names: Windows Live, Microsoft Office Live, Windows Live Messenger, and so on," Marc Benioff, chief executive of San Francisco-based Salesforce.com, said in a statement. "The clear implication is that their current product line should be renamed with similar zeal: Windows Dead, Microsoft Office Dead, and Windows Live Messenger Dead."

Zach Nelson, president and chief executive of San Mateo, Calif.-based, NetSuite Inc., said Microsoft had a long ways to go before it could offer comparable products to vendors that have been delivering software as a service for years.

"They're just dipping their toe in the water of software as a service," Nelson said.

NetSuite's products, which include customer relationship management and financial applications for small and medium-size businesses, took seven years to develop, Nelson said.

Salesforce.com has sold CRM and sales force automation services for several years.

"Cash doesn't really make a difference here," Nelson said, referring to Microsoft's huge cash reserves. "It takes time to build robust business applications and deliver them over the Internet."