Microsoft's risky MSN Web services bet

ZDNet | at | by Mike

Only a year ago, Microsoft and the rest of the high-tech industry were anticipating huge consumer demand for Web services ranging from shopping to communication. Then reality set in. Originally code-named HailStorm, Microsoft's plan for delivering consumer Web services immediately ran into resistance because of security concerns and confusion. Microsoft made matters worse by publicly christening the program as .Net My Services, a name often mistaken for its broader .Net technology architecture.

Now, the company is building its consumer Web services around its MSN Internet access service--a move that poses yet another set of risks, given that the online property has been a money-losing operation for years. The decision will fall under intense scrutiny this month when Microsoft breaks out MSN revenue from other consumer products for the first time in the company's quarterly financial report.