David Smith, an analyst at Gartner Inc., said Microsoft faces a changing technology landscape and needs to reinvent itself to accommodate IT trends such as the delivery of software as a service and the development of so-called Web 2.0 applications.

Gates has led Microsoft's responses to major market challenges in the past. In particular, he wrote a legendary 1995 memorandum titled "Internet Tidal Wave," in which he expounded on how critical e-commerce would become to business survival.

But Smith said that Ozzie is better suited to driving major changes than Gates is at this point. Dave Chacon, a technical services manager at golf equipment maker Ping Inc. in Phoenix, said he thinks Ozzie also will be more willing "to take risks for the sake of the customer" than Gates is. "I'm hoping that this translates into a company that is focused on providing products with such intrinsic value that there is no need to use customer lock-in techniques," Chacon said. "It always drives me crazy when I have to put up with marginal Product A because of an artificial coupling with valuable Product B."

Schering-Plough's Wanko said he is eagerly anticipating moves in new directions from Microsoft -- such as possibly spinning off some of its operations into separate companies. "I like change -- change is good," he said. "And anything that can potentially break up a monopoly, even a de facto one, is always good for consumers and the industry alike." Wanko added that with the planned changes, Microsoft "might get me to take a second look at its portfolio."