Microsoft is now talking the talk but will it walk the walk? Many in the technology world doubt the depth of its conversion to a new internet services strategy. The company must hope that the publication of memorandums by Bill Gates and Ray Ozzie, chief technology officer, persuade its staff, partners and customers that it grasps the enormity of the challenge ahead.

Mr Gates minces no words in his memo, dubbing internet services a very “disruptive” technology. This term, coined by Clay Christensen in his book, The Innovator’s Dilemma, refers to a new technology that destroys old business models by providing ways to offer services more cheaply and efficiently.