Microsoft Plans Make-Over

Microsoft Corp. plans to remake itself from the No. 1 maker of software to the No. 1 provider of software services over the Internet as it anticipates an erosion of its operating-system dominance. Microsoft’s announcement that it will start renting its Office group of business software over the Internet is the beginning of a 10-year transition to a services company, according to a schedule set by President Steve Ballmer. Microsoft’s push into services is a response to anticipated competition for its flagship Windows system from rivals such as Red Hat Inc., and possibly harsh remedies resulting from its antitrust trial. Last week, U.S. District Judge Thomas Penfield Jackson found that Microsoft has a monopoly in operating systems. Shares of Microsoft fell $1.06 to close at $88.88 on Nasdaq after losing $1.63 Monday.