Microsoft is set to massively update Windows Live and finally bring all the bits together, breaking apart the silos that have been preventing communication tools from working together and creating what they call an "integrated personal communication service".
Just like Yahoo, the world's biggest software manufacturer is feeling the heat from social networking entities like Facebook, Twitter or Myspace which are taking away the buzz (and the advertising money) from the traditional players.
So with more than 460 million active users worldwide and already 17 percent of online time in the UK, the Live is well positioned to take on the challenge of bringing pulling itself up to face the rest of the competition.
And Microsoft can count on a unique feature that it, alone, can offer - partnership with leading companies worldwide like HP ort China Telecom which allows it to expand its influence further and quicker than any other technology company.
So the new, improved Live will pull together feeds from other social networking websites into one sleek profile page, in effect "Synchronising your life" as they put it. Other third party websites will be included in due time.
Some like PC World are questioning whether the software Giant is not shooting itself in the foot by relaunching Windows Live Portal after it invested $240 million in Facebook in October 2007.
That said, Microsoft has the habit of investing in its competitors either to reduce the risk of having long legal battles (e.g. its timely investments in rival Corel to keep the company afloat in 2000) and to forge long term partnerships (e.g. investing in Apple in 1997).