Web services, delivered alongside classic software, will complement rather than replace the existing software industry, Microsoft’s chief technologist said on Thursday. Chief Software Architect Ray Ozzie told investors and reporters attending the annual financial analyst meeting at Microsoft’s headquarters that the company is looking to convert its existing software franchises into Web-delivered services.
“The overall services opportunity is largely additive, increasing revenue opportunities for both our existing software licensing model as well as our services business model,” Ozzie said.

Microsoft’s strategy is to connect a wide range of devices onto various networks to allow consumers to enjoy the same information and entertainment not only on their computers but also via mobile phones, TVs and gaming systems.

“It’s not unreasonable to think we’ll catalyze some level of additional PC and device purchases,” he said.

Last month, Ozzie stepped into the top technical post at Microsoft, replacing co-founder

Bill Gates. Gates remains chairman, but Ozzie is the up-and-coming visionary with a track record of ground-breaking software including Lotus Notes and wide respect among industry rivals.

Ozzie took issue with technology purists who say Web-delivered services will completely replace traditional computer-installed software. Source: Yahoo!