After rereading Chief Technology Officer Ray Ozzie's "Internet Services Disruption" memo (which was far more interesting than Chairman Bill Gates' complementary memo on Microsoft's services push), we distilled Microsoft's strategy to its essence. To us, this is the key sentence: "Limited trial use, ad-monetized or free reduced-function use, subscription-based use, on-line activation, digital license management, automatic update, and other such concepts are now entering the vocabulary of any developer building products that wish to successfully utilize the web as a channel." Microsoft expects all of its product divisions to have a services strategy. A services czar, known as a "scenario owner," will be appointed to each division and will focus on developing two kinds of Microsoft services: ad-supported and subscription-based. That's it, in a nutshell.