Microsoft continues to pour resources and development into its plan to develop Web-based services, a strategy that involves employing new business models -- such as online advertising and content licensing partnerships -- rather than its traditional software licensing to generate new revenue. Some analysts and industry-watchers have mused that this shift in focus to the Web may someday mean an end to packaged software for the world's largest and most lucrative software company. But the man responsible for developing the Windows OS and bringing it to market said that scenario will probably never happen.

Allchin: Services, software will coexist