Mr. Gates no longer attends senior leadership team meetings, and earlier this month he made what company executives described as a farewell appearance at the annual Microsoft sales force meeting in Orlando, Fla. When Mr. Gates finished his speech to the thousands of sales people at the meeting, they gave him a five-minute standing ovation, underscoring the bond the company still retains with its co-founder, according to a person who attended the event.

Image Ray Ozzie, right, and Craig Mundie, center, will take over two of Bill Gatess roles at Microsoft. Credit... Kevin P. Casey for The New York Times

But as he cedes Microsoft’s technology leadership to Mr. Mundie and Mr. Ozzie, the company is struggling with a radical transition in the computer industry. Six months ago, Microsoft shipped its long-delayed Windows Vista operating system, and there is widespread belief within the industry that the era of such unwieldy and vast software development projects is coming to an end.

Ubiquitous broadband networks and high speed wireless networks have for the first time given rise to meaningful alternatives to bulky and costly personal computers. In their place are a proliferating collection of smart connected devices that are tied together by a vast array of Internet-based information services based in centralized data centers.

The industry is rushing to “software as a service” models ranging from Salesforce.com, a San Francisco company that sells business contact software delivered via Web browsers, to Apple’s iPhone, which is designed as a classic “thin client,” a computer that requires the Internet for many of its capabilities.

It is a vision that Microsoft itself has at least partially embraced. Microsoft, in contrast, is calling its strategy “software plus services,” an approach that is intended to protect the company’s existing installed base.

During the interview, all three executives indicated that Microsoft is now moving quickly to offer new Internet services for personal computer users. Centralized data storage will make it possible for PC users to gain access to most or all of their information from all of the different types of computers they use, whether they are desktops, laptops or smartphones, and wherever they are located.

During the transition, Mr. Gates has also stayed closely involved in shaping Microsoft’s strategy in the search market where it has been assiduously attempting to catch Google and Yahoo.