Microsoft believes the promise of completely on-demand software hosted in the internet "cloud" will not come to pass.
Instead, the company is pushing a hybrid model of software delivery that uses end-user computing devices as well as the World Wide Web.
The push to hang onto at least part of the licenced software model that has underpinned the company's fortunes, comes as the world's largest software group continues to wage a battle against open-source type formats (the latest being Open Document Format) and plans to shake up the small-business customer relationship management market.
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