What risks does Microsoft face with its subscription model?

Case study: Microsoft defends its empire
Case link: http://www.bloomberg.com/news/articles/2009-06-24/microsoft-defends-its-empire
Microsoft is the applications and operating software behemoth.The advent of the Internet has ushered in a host of rivals offering cheap or free software on the Web.This has threatened Microsoft’s lucrative business model and the company has reacted aggressively by switching to a subscription-based model for many of its popular products.In a contentious hiring, Stephen Elop has been charged with the responsibility of using the Internet more aggressively to improve the company’s performance.Elop and Microsoft face a number of challenges in this area.
What conclusions did Steve Ballmer draw about the future of Microsoft?
What is Microsoft’s subscription model?
What risks does Microsoft face with its subscription model?
What is Stephen Elop’s role at Microsoft?

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