Ballmer: Microsoft transitioning away from packaged software
WinInfo | at | by Mike
Ballmer also noted that Microsoft was moving away from boxed, packaged software to a model where software and services are deployed and maintained via the Internet cloud. The company has a lot of work to do to catch up to Google in Web search, he admitted--a process that will take several years and "a lot of money," he said--but Microsoft "isn't afraid" of embracing a new business model. Ballmer says he's willing to spend 5 to 10 percent of Microsoft's annual income on research and development to get it there, too, and the company will spend $8.5 billion in this fiscal year alone on R&D. "If you are the Number Two guy you are going to have to at least ante up," Ballmer, ever the card player, added.