(AP) One of the men who will lead Microsoft as co-founder Bill Gates steps back from handling daily responsibilities says shifting the company to embrace services is a "very positive thing."

Ray Ozzie, Microsoft's chief technical officer, will take over Gates' role of chief software architect as the company moves toward offering more online software and services — which Gates has made clear is a top priority.

Steve Ballmer, Microsoft's chief executive, will continue to run the company. Craig Mundie, another chief technical officer, will oversee Microsoft's strategy and research.

Microsoft executives are leading the company at a time when the industry is increasingly focused on Internet-based services championed by Google and others.

Gates says he plans to step back from handling daily responsibilities by July 2008, although he'll remain as chairman.

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