Software giants Microsoft now wants to be a giant in the web services industry. The company plans to introduce a Web-based version of its sales and marketing software in 2007.

The aim is enter the market dominated by companies like Salesforce.com, Oracle and SAP. Microsoft would be targeting small business operations in the initial stages.

Market analysts believe that this move proves that the company is looking at the future and accepting the fact that not all businesses would be using software products for internal operations in the coming years.

Rob Bois, an analyst at AMR Research spoke on this new initiative from the company: “All eyes are on Microsoft and how they are going to compete in this emerging market. This is one more affirmation that they are serious about competing and that they are not just content with competing in the client-server model.”

The company already is working on a series of Live Services to take on similar product offerings from rivals like Google and Yahoo!