My previous post on Gates's leaked plans for MSFT highlighted the fact that MSFT sees advertising as a primary revenue model for web-based service applications that will disrupt desktop software. If this is the case, can they defeat Google, who has partnered with Sun and hinted at releasing an advertising-funded web version of OpenOffice?

This would essentially mean that MSFT and GOOG are offering the same product and intend to monetize it the same way. Contextual advertising is one of Google's chief priorities and strengths -- thus making this a potentially dangerous move for MSFT. Would they be better off focusing on the business market, and using a subscription revenue model? I'm inclined to think so.

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