Microsoft may set up an online version of its low-end Works productivity suite to compete with offerings from Google and a number of startup companies.
report the company wants to find more ways of reaching potential customers:
"We're also thinking about how we might take advantage of new business models like advertising and other payment models, as well as new forms of distribution," said Yates.
When Microsoft first began to discuss online options like Techdirt, is in collaboration. The While the company started with a run of blockbuster hits--search, maps and Gmail--it hasn't had one since.
"The sense that Google can do everything well has been tarnished," said Joe Kraus, who co-founded and then sold Excite.com, which pioneered computer search in the early 1990s. "They've made people say, `Wait a second, not everything coming out of Google is amazing.'"
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David Utter is a staff writer for Murdok covering technology and business. 
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