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Some people might be claiming that Microsoft is losing it to the internet. Online services are replacing software solutions and Microsoft itself is working hard on launching their Live branded services.

However, the software giant has now said that they believe that the online services would complement the offline software products in the longer run and won’t necessarily replace them.

Microsoft Chief Software Architect Ray Ozzie said in a statement that they are working on converting its existing software franchises into Web-delivered services.

He said: “The overall services opportunity is largely additive, increasing revenue opportunities for both our existing software licensing model as well as our services business model. It’s not unreasonable to think we’ll catalyze some level of additional PC and device purchases.”