Microsoft Corp. is widely expected to announce on Tuesday further forays into software and services that can be accessed over the Internet - a growing competitive arena that some say could eventually threaten Microsofts biggest cash cows.

The Redmond-based software behemoth is facing increasing competition from companies such as Google Inc. and Yahoo Inc., which offer an array of free consumer services, and Salesforce.com and NetSuite Inc., which have had success with Web-based business offerings.

The concern is that applications including free e-mail and Web-based business products could eventually grow so broad and easy to use that people will begin to question why they are paying for Microsofts two big moneymakers, the Windows operating system and Office business software suite.

Microsoft has already acknowledged that it must create more Web-based products if it wants to stay competitive. But analysts say that in doing so, the company must walk a delicate line of drawing consumers to its online offerings without taking business away from Windows and Office.

Competition is a great thing and keeps everyone on their toes, the thing to watch here will be to see if in the coming months Microsoft made the right choices.

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