Microsoft has not embraced the "software as a service" trend for its desktop applications. Google has the successful "Google Docs and Spreadsheets" which are offered as a service when you are connected by broadband. Microsoft has avoided doing this instead giving people the option of when using something like Microsoft Office additional services when using this desktop program.

Anita Campbell discusses Microsoft's stance towards software as a service in "Microsoft Avoids Software as a Service - Smart or Dumb?". As part of this discussion she reviews how she finds using desktop software as being more convenient than connecting online every time she wants to word-process a document, or every time she wants to prepare a presentation. She tends to agree with Microsoft that there is still a huge market for desktop software.

In spite of this there is a trend towards more and more "Software as a service" offerings. In a small directory site I have been collecting the names of each of these services - Elwyn Jenkins' List of Web Services. This site is not finished yet, but you can get the drift that there is a mounting pile of them.

Do you think Microsoft is smart or dumb in not offering its desktop applications as a service?