Microsoft Corp is set to launch an expanded set of e-commerce services on Thursday, according to widespread industry reports. With its eye on America Online Inc, Microsoft is expected to offer hosting services to small and medium companies looking for a web presence, and will offer services and software to other web hosting firms. The hosting is likely to be encompassed within the Microsoft Network. Enhancements to Microsoft Site Server Commerce Edition and plans for further upgraded server software due to ship with Windows 2000 are also expected at the launch. The acquisition of Netscape Communications Corp by AOL and the proposed Lycos/USA Networks Inc deal has left the impression that Microsoft is falling behind in e-commerce.