Ray Ozzie on software as a service & its seamless impact on consumers

Andrew B. Smith has this full memo of Ray Ozzie, CTO of Microsoft  on the future of software and how it will impact consumers. 

Here are some interesting points from the memo on how he sees the future of software as a service:

Key Tenets

Today there are three key tenets that are driving fundamental shifts in the landscape – all of which are related in some way to services. It’s key to embrace these tenets within the context of our products and services.

1.The power of the advertising-supported economic model.

Online advertising has emerged as a significant new means by which to directly and indirectly fund the creation and delivery of software and services. In some cases, it may be possible for one to obtain more revenue through the advertising model than through a traditional licensing model.

2.The effectiveness of a new delivery and adoption model.

A grassroots technology adoption pattern has emerged on the internet largely in parallel to the classic methods of selling software to the enterprise. Products are now discovered through a combination of blogs, search keyword-based advertising, online product marketing and word-of-mouth. It’s now expected that anything discovered can be sampled and experienced through self-service exploration and download.

3.The demand for compelling, integrated user experiences that "just work".

The PC has morphed into new form factors and new roles, and we increasingly have more than one in our lives – at work, at home, laptops, tablets, even in the living room. Cell phones have become ubiquitous. There are a myriad of handheld devices. Set-top boxes, PVRs and game consoles are changing what and how we watch television. Photos, music and voice communications are all rapidly going digital and being driven by software. Automobiles are on a path to become smart and connected. The emergence of the digital lifestyle that utilizes all these technologies is changing how we learn, play games, watch TV, communicate with friends and family, listen to music and share memories.

…seamless experiences to customers, enabled by services and service-enhanced software:

  1. Seamless OS
  2. Seamless Communication
  3. Seamless Productivity
  4. Seamless Entertainment
  5. Seamless solutions
  6. Seamless IT

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