Microsoft is back, feeling pretty good about itself, and ready to take the world to a new era of computing wrapped around the Web, a senior Microsoft executive said yesterday.

However, it may take longer than expected to persuade corporations to lease software through its microsoft.net strategy instead of buying outright.

Mr Robert McDowell, vice-president, worldwide services, said Microsoft was "excited" about a succession of product launches planned for this year.

These include Microsoft's latest version of its desktop toolkit Office XP, the XBOX gaming console and its Windows XP operating system.

The string of product launches is expected to give Microsoft a welcome boost just when the technology market is at its most sluggish.

Speaking before the global launch of Office XP in Dublin yesterday, Mr McDowell said Microsoft was poised for growth despite the economic slowdown.

"We're seeing the same slowdown as everyone else but it may be working to our favour," he said. "Corporations are looking for a better business case as well as technology."

The high level of interoperability of Microsoft products is what is driving sales, believes Mr McDowell.

"In the 1980s the goal was to provide "best-of-breed" software, but it became clear to us in the 1990s the real value was in integration and how does this stuff work together.

"The personal computer is not dead but there is a new era of computing and it is wrapped around the Internet and a variety of new devices."

Microsoft aims to provide the platform and development tools for the new Internet era through its microsoft.net strategy, said Mr McDowell.

"It's a brand, our attempt to put an umbrella around everything we are doing and the products we are building," he said. "It will enable us to offer software as a service."

But the timetable for moving customers from purchasing software "out of the box" to leasing software that can be delivered online may be pushed back.

"I don't think large enterprises will move as quickly and this will not happen next year," said Mr McDowell. "It's more likely to be taken up by smaller firms first."

In the long term, though, Microsoft remains bullish on its .Net strategy and the company is committed to rebuilding every product around it, he said.

Microsoft almost missed the Internet bandwagon when it allowed competitors such as Sun Microsystems, Oracle and AOL to take a lead in the 1990s. But Mr McDowell is now looking forward to a long and competitive battle.

"AOL is by far the leader in terms of Internet use but you have seen Microsoft make progress against Yahoo recently," he said. "The result of the competition will have a lot to do with the content and services we offer."

Microsoft's attempt to dominate the Internet world will probably see the firm tying certain core software to its new operating system, raising the spectre of further antitrust suits.

Mr McDowell would not comment on the status of the current anti-trust battle with the US Department of Justice, which could result in the breakup of the firm.

However, he is adamant that Microsoft has not broken any laws.

There is speculation that the new Bush administration, which received strong backing from some Microsoft executives, will urge the US Court of Appeals to take a softer line.

Mr McDowell, who can trace some relations to Northern Ireland, has travelled to the Republic many times over the past 25 years to do business and is relatively impressed with recent progress.

"Clearly you [Ireland] have the education and passion and technology now," says Mr McDowell. "And the technology investment is getting more advanced now, its much more than just manufacturing. This creates jobs with pretty permanent opportunities.

"I can remember when Irish people though they were extremely lucky if they got a job in Digital during the 1970s because this meant they wouldn't have to travel abroad [for work]," says Mr McDowell. "Its good to see such a large return of skills sets."

But the Republic is missing out on a major opportunity to sell goods and services over the Internet and to use the online medium to promote itself abroad, says Mr McDowell.

He says businesses and agencies in the Republic should use the Internet more to promote products and the State's image.

"I've always thought both Ireland and Scotland still haven't taken advantage of the strong brand they have for the Internet," said Mr McDowell, " [especially] when you consider they make up one of the largest ethnic tribes in the US.

"So the Internet offers unbelievable opportunities to sell yourself to the marketplace with a certain cache that others don't have. And I just don't see this happening here."