Can Ballmer reinvent Microsoft?

Internet-based services threaten Microsoft's software sales, but CEO Steve Ballmer isn't running scared. Instead, he has embraced the Web with a multibillion-dollar bet on Azure, a new operating system that will allow users to essentially rent existing software through Internet subscriptions. His success depends largely on his ability to inspire his giant work force. "It's one of those moments where Microsoft has to turn the entire battleship around," says one analyst.

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