That’s the promise of Microsoft Windows Live. Announced last November, it’s Microsoft Corp.’s attempt at software-as-a-service, which is to say applications you run via the Internet instead of your hard drive.

It’s a significant move for a company that has made billions selling software you install but, more important, it could have an impact on how you work.

Granted, Web-based applications are not new. Companies such as Salesforce.com have proved the model works, can save organizations money and potentially make people more productive. But Web-based Microsoft applications are a whole other breed.

Today you can test drive various Windows Live beta applets at www.live.com. Office Live is not yet among the software offered, but Microsoft says it should be out soon. It’s important to note that Live software is not entirely free of installation legwork. But once running, the Live applets show promise. Live programs have a richer client-side experience, more functionality and better performance than pure Web-based tools. This will be critical when you try and run something like Excel off the Internet.

Live Favorites is a simple utility for taking Internet Explorer Favorites wherever you go. It may take a while to import your Favorites but once they’re part of the Live program, they’re easy to manipulate and make work-related Favorites accessible from your home computer.

Government managers and their IT departments have much to gain from buying software as a service. Keep an eye on what Microsoft is doing and play with the Live programs as they come out. You’ll be well positioned to reap their benefits.