Microsoft has a variety of "opportunities" to take cost out of the development, deployment and day-to-day operations of IT systems, according to CEO Steve Ballmer. During his keynote address at the Gartner Symposium here this morning, the pugnacious CEO was peppered with questions about the cost of Microsoft software, the security vulnerabilities in its products and its ongoing battle with Linux.
He pointed to Microsoft's Dynamic Systems Initiative as an example of the work that the software giant is undertaking to reduce the TCO (total cost of ownership). At the same time, more automation is needed to lower the TCO of IT systems, he added.
How does Microsoft know that customers are ready to employ OneNote note-taking software on Tablet PCs, rather than stick with good, old pen and paper? When is too soon to push customers toward using shared document workspaces to conduct meetings? In short, how does a company full of tech-savvy geeks know that it isn't too far out ahead of its current and potential users, when developing and launching new technologies?
Peter Rinearson, the corporate VP in charge of new markets, is the executive charged with this daunting task for the information worker business unit.
"We sometimes try to make intuitive leaps by having our people thinking where society is going," Rinearson explains. "Sometimes it's a little gamble. Sometimes it works."
Microsoft says the new version of Office, its most profitable product, could also represent a bonanza for its partners. The software giant is touting partner benefits as a part of its promotional message for the launch of Office System, a new family of products that's built around its widespread productivity suite.
More than 700 partners are ready to offer add-on software and services that tie into Office applications, and Microsoft said it's developing hundreds more such products. Backers include a variety of organizations, from established software giants such as SAP to technology newcomers like the U.S. Postal Service.
Microsoft on Tuesday introduced a new version of its Office software, betting that enhanced tools for collaboration will entice companies to spend $150 to $500 for copies of the upgrade. The upgrade, known as Office System 2003, allows colleagues to collaborate on documents, research information from within Word, Excel, Outlook or other applications and manage data over the Web.
"Teams of people are where I think the (new Office) really shines," Chief Executive Steve Ballmer told corporate and government technology buyers at Gartner's annual conference in Orlando, Florida.
Microsoft on Tuesday will not only announce the worldwide availability of Office System 2003, but will also roll out the results of a commissioned study. According to the findings, its latest suite brings big worker productivity improvements and a rapid return on investment. It also found that the companies realized a median net present value of $4,000 a worker, and that the solutions paid for themselves in an average of just eight months.
The iWave is about to crest. Finally. On Tuesday, after months of delays, Office Systems 2003 will launch officially. And Microsoft will do its utmost to show why that the collection of Office applications, plus tighter links to back end systems, should break the IT purchase logjam.
The big event, fronted by Microsoft chairman Bill Gates, will take place right off Broadway, exactly where Microsoft rolled out Office 4 a decade ago. But, the primary goal will be to show that Office System 2003, is more than just another Office. For one thing, it encompasses Exchange Server 2003 and Outlook 2003, for tighter mail integration from the applications; SharePoint Portal Server 2003 for easier collaboration and information sharing; InfoPath for links to back office systems; and, OneNote for note-taking.
The most powerful piece of software inside Microsoft may be the $40 application from a tiny vendor called Userland that Robert Scoble uses to write his weblog. Scoble, part of the Windows marketing team, publishes his personal observations at the Scobleizer Weblog . His daily ramblings, unedited by corporate brass or media handlers, give the world a window into Microsoft, building buzz for its products such as Office 2003 and creating a human face for a company that needs all the humanizing it can get.
They are stronger than steel and as flexible as plastic, conduct energy better than almost any material ever discovered and can be made from unexotic raw materials such as methane gas. Now the question is whether they can live up to their promise.
In a relatively short time, carbon nanotubes--thin tubes of carbon atoms that have unusual characteristics because of their unique structure--have emerged as a miracle material that could revolutionize a number of industries.
Microsoft has already started to dig in its heels in the customer relationship management (CRM) market, and has signed Alcatel ISV subsidiary Genesys to help it push into the SME call centre market. David du Toit, solutions director at call centre integrator Datapoint, said this was an interesting move from the software giant.
"If you look at what Microsoft is trying to do with Nuance on the CRM side and linking into Genesys with computer telephony integration [CTI] it looks like one of the things it is trying to do is create shrink-wrapped CTI functionality," he said.
Some say they don't mind waiting another year for Windows; others say it's the straw that will drive them to Linux or Mac OS. Last week, I wondered aloud whether Microsoft's decision to slip the due date for Longhorn (to 2006) would matter all that much to users well used to perpetually late Windows releases.
Well, the readers have spoken. It matters.
To most who wrote in, the latest push-back is a positive thing. They say they have barely digested Windows XP and are in no rush to upgrade to yet another new Windows release. They would rather Microsoft get the product right than have to patch and re-patch, they say.
But to others - who have been hearing Microsoft's promises of better security; more tightly integrated development tools and technologies; a souped-up user-interface equal to Apple's best - another delay is the last straw. Linux and Mac OS: Here they come.