Gates memo warns of 'disruptive' changes

C|Net | at | by Mike

Aiming to stir up the same kind of momentum as his Internet Tidal Wave memo of a decade earlier, Microsoft Chairman Bill Gates has penned a memo outlining the challenges Microsoft faces from a host of online competitors.

"This coming 'services wave' will be very disruptive," Gates said in an Oct. 30 e-mail to top Microsoft employees, which was seen by CNET News.com. "We have competitors who will seize on these approaches and challenge us."

In the memo, Gates cites an earlier missive from Ray Ozzie, outlining the importance of tapping online advertising and services as new revenue sources.