When Microsoft Corp. (NASDAQ: MSFT) CEO Steve Ballmer speaks, dissecting his words can sometimes take a while. The brash but successful CEO sometimes says things that demonstrate arrogance or a misunderstanding of certain markets, but generally he's right on target. Ballmer recently stated that Microsoft's mantra is "staying ahead" in the constantly changing disruptions in the software business.

Now, the "software business" can be defined differently than it was even six years ago. Companies like salesforce.com, inc. (NYSE: CRM) and Google Inc. (NASDAQ: GOOG) have taken software applications out of computers and put them on the web. All that is needed is an Internet connection and a web browser -- no software updates or service packs needed -- ever. Is that what Ballmer is talking about? Perhaps. The handpicked successor to Bill Gates -- Ray Ozzie -- will have a plate higher than almost anyone in the world soon (like, now) as Microsoft tries to catch up in the world where "software" is increasingly being deployed via the Internet.

Do IT departments embrace change? Ballmer doesn't think so, as he sees them building non-disruptive competencies around what business needs are (and will be). If this enough? In a world full of change, this can be a disaster waiting to happen. With Microsoft spending around $6 billion per fiscal year in the R&D field, what can the software giant do to unplug that kind of thinking? Ballmer says that, "there is a view that innovation happens overnight and that's simply not the case. It took us eight to 10 years to get Windows popular, and many years to get databases popular." This is true -- but it's a different world now where CDs aren't used for software distribution and database development happens way, way outside the customer facility. Innovation happening overnight? That is the new ballgame, Steve.