• WSJ, Wednesday, November 9, 2005 12:45 PM

Microsoft believes it's at a crossroads, according to a Wall Street Journal report. In an Oct. 30 e-mail sent to top executives at Microsoft, Chairman Bill Gates said the company needs to better address the trends that are now making money on the Web. He called the shift in the landscape "the next sea change." The e-mail highlights a memo from Ray Ozzie, Microsoft's chief technology officer, who cites several missed opportunities by the software giant that were taken instead by Google, Salesforce.com, and Skype Technologies. The memo provides insight into Microsoft's announcement last week that it was taking its Office suite and other software services to the Web, where they will be mostly free, supported by ads and premium services. In the memo, Ozzie outlines several additional steps that need to be taken to reestablish the Microsoft empire. "It's clear that if we fail to do so, our business as we know it is at risk," he said. "We must respond quickly and decisively."

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