Ballmer gives his take on software-plus-services plan
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(InfoWorld) - Microsoft's top executive outlined the company's plan to transition from a traditional software company to offering software plus services for the first time on Tuesday, giving some roadmap details for how the strategy will play out in the next year. In a keynote at the Worldwide Partner Conference in Denver, Microsoft CEO Steve Ballmer shed more details on the plan other executives, such as Chief Software Architect Ray Ozzie, have been teasing out over the past year -- but not many more. He gave a time frame for the early part of the transition but mostly echoed what other executives have said about Microsoft's slow transition to adding hosted business services to its traditional software portfolio. "For software plus services, the time is now," Ballmer said, finishing off the first of a raft of keynotes on the first day of Microsoft's annual partner conference. He said that over the next year, Microsoft will continue to sell mostly on-premises software, but there will be more evidence of the transition to its hybrid model as the year goes on. Since Microsoft began talking about its plan to gradually transition to offering more hosted services last year in a speech by Ozzie at its TechEd Conference in Boston, many noted that the company had no choice. With such an entrenched business in enterprise and consumer desktop software, it would be impossible for Microsoft to be as nimble in offering hosted services as rivals like Google and Salesforce.com, which started their businesses as Web-based services providers. And a warmer reception for hosted services is clearly the direction the enterprise market is heading as businesses become more comfortable accessing Web-based services beyond the traditional consumer staples of e-mail and search that have been popular for years. The transition to providing more services will touch every part of Microsoft's business, but some changes will be more obvious than others, Ballmer said. The user interface will be an important place for innovation in this area, and Microsoft's Silverlight technology is the cornerstone of that, he said. Microsoft introduced Silverlight, a browser plug-in that allows for rich video and interactive media experience to be delivered within Web sites, in April. A solid services platform on which partners can build services and also that they can resell with Microsoft managing and hosting them also will be a clear sign of the transition, Ballmer said. Microsoft already is offering a combination of consumer-oriented services, such as Windows Live Hotmail and Windows Live Local Search, but will begin bulking up its portfolio of enterprise services as well, he said. Microsoft already has unveiled business services like Exchange Hosted Services for enterprise messaging and Office Live hosted service for small businesses. There will be new and expanded services like these as Microsoft progresses further with its software plus services strategy, Ballmer said.
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The software maker says the time has come to offer business software in versions that are both hosted and not hosted.
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Microsoft CEO Steve Ballmer has made a &quot;pre-emptive strike&quot; against Linux, which is fast becoming a bigger thorn in the software giant&#39;s side.
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The company plans to release Power Pack 1, a collection of fixes, enhancements, and features to its software for servers in the home.
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Software maker has its eye on consumers who might be ready to make the switch from Windows.
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Stephen M. Bennett, Intuitâs chief executive, discussed forays into online banking, health care expense-management software and tax software.
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Microsoft chief executive Steve Ballmer says the software giant is listening to customers, and wants to make the company and its employees more accountable for delivering on its plans.
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InfoWorld - Microsoft partners introduced to the company&#39;s software-plus-services strategy this week at its Worldwide Partner Conference (WPC) applauded the plan, though they noted a few challenges as the company makes the transition from selling business software to offering more hosted and Web-based services.
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Microsoft CEO Steve Ballmer has made courting Linux users and those considering the open-source option a top priority and said the sheer volume of innovation that Longhorn development efforts
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A software tools maker is staking its future on helping developers prepare for streamlined coding for Web services (define) as well as Avalon, the graphics display component in the works for Longhorn, Microsoft&#39;s next version of Windows.
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SAP's chief software architect talked about one of the company's first on-demand offerings, its software-as-a-service philosophy, search functionalities in enterprise software, Web service standards and more in an interview.
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Can Microsoft thrive in a new digital era? In the worldview of Steven A. Ballmer, the companyâs chief executive, failure is not an option.
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When Steve Ballmer wants to make a stir he makes sure that he makes a big one. At the same venue where he spoke of Bill Gates receiving 4 million emails a day he also chose the meeting of Asian Government
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Windows computing environments are cheaper, more secure, and lower risk than those based on Linux and open-source software, CEO Steve Ballmer asserts in an E-mail sent Wednesday to Microsoft&#39;s customers and partners.
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InfoWorld - Mobile phones play an important role in Microsoft's software-plus-services vision, CEO Steve Ballmer said Tuesday.
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By Benjamin J. Romano, Seattle Times  Feb. 3--Microsoft Chief Executive Steve Ballmer did a little market research, recruiting and philanthropy in one appearance before an audience of high-school students from around the country Friday.
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(InfoWorld) - Microsoft partners introduced to the company's software-plus-services strategy this week at its Worldwide Partner Conference (WPC) applauded the plan, though they noted a few challenges as the company makes the transition from selling business software to offering more hosted and Web-based services. Microsoft used its annual partner conference, held this year in Denver, as a coming-out party for the strategy, with CEO Steve Ballmer outlining the plan for the first time after other executives have been discussing it publicly for more than a year. It seemed fitting that the company's top executive was the one to deliver the message to thousands of partners who play a significant role in the company's success. "I had no idea how partner-focused Microsoft really is," said Linda Gillis, a first-time attendee of the WPC and director of marketing for Squirrel Systems, a British Columbia company that provides restaurant point-of-sale software and services. This dependency on partners is a double-edged sword for Microsoft as it moves to a more Web-centric services business model versus the software license model it has used successfully for years. The company not only has to revise its strategy, remaining several steps behind competitors such as Google that started business on the Web and have no traditional software business, but it also has to help its partners make changes, too. To do this, Microsoft has been slowly ramping up its hosted services portfolio with a series of both consumer and business services. Executives also said at the WPC that those services will eventually become a full-fledged development platform, being both an OS and platform for new applications on the Web in a similar way that Windows is on the desktop. Gillis said that moving toward offering more services for business in addition to software is the right direction for both Microsoft and its partners. "The addition of services helps to create long-term customer relationships and a recurring revenue stream," she said. Most partners agreed with this sentiment, but some noted challenges that both Microsoft and partners will face as they make the switch. Jay Blazensky, vice president of business development for RingCentral, a Microsoft partner that provides voice services, including click-to-call, agreed that creating repeatable revenue is a definite benefit of the plan. But he noted that a challenge for Microsoft and its partners is to convince sales people to "forgo the larger up-front commission in lieu of a recurring annuity." "Those that buy into the model and are successful -- and patient -- have the opportunity to be enormously successful," he said. Another partner, Joe McDermott of Solution Canvas, said Microsoft's strategy of transitioning services in a calculated and deliberateÂ manner is the only way to make the change, which is necessary because it is what customers are demanding. Solution Canvas has built a service for small law firms using Microsoft's Office Live hosted service. "I think the strategy is the way forward strategically for both Microsoft and [partners] ... because in the end the marketplace will dictate and demand," he said. "End-users are who ultimately matter, and now that we have new Web technologies like AJAX and a rapid application development platform in Office Live, the barriers to powerful online applications are gone." At the same time, McDermott acknowledged that some Microsoft partners will have to learn new skills to take advantage of the new services approach, though the company's "considered pace" for moving to services will help them in that endeavor. While McDermott praised the technologies that enable more hosted services, one of them -- reliable access to broadband -- remains a hindrance not only to Microsoft's services plan but also its competitors' plans, RingCentral's Blazensky said. "It's an industry-wide challenge ... [but] it's maturing every day," he noted.