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By News.com
Posted on ZDNet News: Mar 16, 2006 9:59:00 AM

NEW YORK--Microsoft will spend $500 million this year to promote upcoming products designed to make business workers more productive, CEO Steve Ballmer said Thursday.

Software due to arrive over the next year will cater to information workers in corporations, he told an audience at a Microsoft-organized customer event here. The event was specifically targeted at business executives, such as CEOs, rather than IT workers or developers.

Ballmer
Credit: Microsoft
Microsoft CEO Steve
Ballmer speaks to
business customers in
New York.

In the past few years, information workers "haven't had all that much" in terms of product innovations, Ballmer said during a press meeting after the conference and his keynote speech.

Microsoft is expected to release Windows Vista and a suite of Office 2007 products by the end of the year. In addition, the company is getting ready to launch an expanded communication product line around its Exchange e-mail server software.

Ballmer said that Microsoft's sharpened focus on end-users this year goes back to the company's roots of appealing to end-users during the early days of the PC.

"In many ways, we are still feeding off the core vision of (Microsoft founders) Bill Gates and Paul Allen, which is the notion of empowerment," he said.

Ballmer sought to draw a contrast with IBM and its approach to selling to businesses. He said that IBM is increasingly a consulting-led company, rather than a technology company.

"We're talking about making people in business more productive every day. IBM is talking about doing a project," Ballmer said.

He added that Microsoft's forthcoming software puts the company into new product categories, which will help drive revenue growth.

In particular, upcoming editions of its Office productivity suite and server products, such as Microsoft's SharePoint portal software, will enable the company to offer software for tasks such as business intelligence and collaboration.

During a presentation, Chris Capossela, a corporate vice president in Microsoft's business division, demonstrated how future products might improve efficiency in typical business situations, such as searching a company network to prepare a sales presentation and analyzing sales numbers. These tasks were done with Office-based applications, rather than specialized tools.

Gartner analyst Tom Austin said that although IBM does indeed actively seek out consulting business, it is still developing software to make office workers more productive.

Austin said Microsoft does have a stronger focus on individuals and provides a great deal of value through a combination of its products. For business customers, however, the value of well-integrated products comes at the price of greater reliance on Microsoft, he said.

"Nobody locks you in as much in delivering all that value as Microsoft, but nobody delivers as much value," he said.

Other analysts at the event noted that Microsoft faces a challenge in convincing customers to upgrade to new versions of Office, because many customers do not take full advantage of already available features.

Martin LaMonica is a CNET News.com senior staff writer who covers business software, software development and green tech.

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  • Talkback
  • Most Recent of 97 Talkback(s)
Unfortunately.....
most linux advocates still need to deal with Windows from what I've read here. As for Linux ppl. not needing to whine.....well I don't know what you'd call many of the talkbacks to various windows art... (Read the rest)
Posted by: April May Posted on: 03/19/06 You are currently: a Guest | | Terms of Use
M$ is all marketing  Linux Geek | 03/16/06
Not even FUD  Yensi717 | 03/16/06
Okay, how much do they spend?  maxsnorkel | 03/16/06
Get over jesus  jimk_z | 03/17/06
No comparison: much higher R&D spending  marksashton | 03/17/06
MSFT R&D Spending vs. Sales/Marketing  marksashton | 03/17/06
Im not so sure about the second part...  thetargos | 03/16/06
Business decisions.  bigpicture | 03/16/06
Dude  Shelendrea | 03/16/06
Gee, and here I am running Office 12  No_Ax_to_Grind | 03/16/06
So switch already.  April May | 03/16/06
nice  Scott W | 03/19/06
Unfortunately.....  April May | 03/19/06
This is a major release of more exceptional concentration to excel se: pvnt  Pop 3 | 03/16/06
Linux Geek spent $1.29 for marketing  osreinstall | 03/17/06
Knew a guy, in the early Seventies, who made $50K a year panhandling.  Judas I. | 03/17/06
I knew a guy back then too...  April May | 03/17/06
Yup, exactly what Microsoft has always done.  Judas I. | 03/17/06
pretty weak I'd say  April May | 03/17/06
You must of been his CPA with that info.  osreinstall | 03/17/06
Accoutants? We don't need no steenking Accountants!  Judas I. | 03/17/06
What competitors voice?  osreinstall | 03/17/06
It will happen soon enough  April May | 03/18/06
Thats exactly what I do.  osreinstall | 03/18/06
I totally agree  April May | 03/19/06
READY FOR BUSINESS  chuckleberry | 03/16/06
Well, he is  Yagotta B. Kidding | 03/16/06
you actually replied...  April May | 03/16/06
How to increase productivity....  jinko | 03/17/06
What he MEANT was ...  Linux_4u! | 03/16/06
Wow, generous!  Roger Ramjet | 03/16/06
MS Business Strategy  bott@... | 03/16/06
you're right  corticus | 03/16/06
So you're gonna start putting Bill Gates straight on business strategy?(nt)  Scrat | 03/17/06
Ummm, and your software company is how big?  No_Ax_to_Grind | 03/17/06
Oh, so now BIGNESS is a measure of QUALITY?  Judas I. | 03/17/06
exactly, so....  April May | 03/17/06
Hey, any Intro to Marketing class will tell you:  Judas I. | 03/17/06
Fiduciary responsibility  Yagotta B. Kidding | 03/17/06
That depends on your business model  April May | 03/17/06
Didn't know little sissy boys had a business model............  Can you hear me | 03/17/06
Message has been deleted.  ITGuy04 | 03/16/06
Why did they delete your message?  Chad_z | 03/16/06
$500M Wasted- Leave the browsers off  rcross@... | 03/16/06
Disagree with this statement  Chad_z | 03/16/06
This year's model  Yagotta B. Kidding | 03/16/06
I agree with your statement -  I_am_hellion_z | 03/16/06
RE: Disagree with this statement  richdave | 03/16/06
I call Bullsh.....  Scrat | 03/17/06
for home users  Scott W | 03/19/06
I own my copy of XP  April May | 03/17/06
Does little sissy redneck boy want to call his Momma and wine..........  Can you hear me | 03/17/06
Tell you what...  April May | 03/18/06
Right  Real World | 03/17/06
Think the office software is...  Dr_Zinj | 03/16/06
Watershed moment in IT...  Mike Cox | 03/16/06
Something new and fresh would be great  dragosani | 03/16/06
I had no idea...  Mike Cox | 03/16/06
Vacation cancelled  talisman | 03/16/06
I still laugh, but I'm easy  ajole | 03/16/06
Message has been deleted.  talisman | 03/16/06
Watershed moment in IT  wd_christian@... | 03/16/06
A real company?  bigpicture | 03/16/06
Chalk up another one!  Yagotta B. Kidding | 03/16/06
Wwwwwhhhiiiizzzzzzzzzttttt............  I_am_hellion_z | 03/16/06
It's more like a toiletbowl moment in IT............  Can you hear me | 03/17/06
sounds like nothing but  April May | 03/17/06
ms_USA_codemaster you can tell your nothing..............  Can you hear me | 03/17/06
I can tell you are a little.  April May | 03/17/06
Only when a cute littsissy dude like you ms_USA_codemaster wants to......  Can you hear me | 03/17/06
8.5 Mikey, Nice Catch of Fresh Fish Too  tbbrickster_z | 03/17/06
nice  Scott W | 03/19/06
$500 Mil can buy a lotta sweaty hollerin' ...  Feldwebel Wolfenstool | 03/16/06
Naysayers will of course bash, (that is all they can do)...  No_Ax_to_Grind | 03/16/06
Bash, Bash, Bash  bigpicture | 03/16/06
I could tell ya what to do with it .....  I_am_hellion_z | 03/16/06
I wondered which fool would step forward.  No_Ax_to_Grind | 03/17/06
Grumpy old man?  enduser_z | 03/17/06
Just Ignore Him  itanalyst | 03/17/06
Actually, not in his "ice fishing hut", but . . .  Plain Logic | 03/18/06
I kind of like Cetus Wordpad, actually..  ajole | 03/16/06
Be patient ......  I_am_hellion_z | 03/16/06
Satisfaction...  Patrick Jones | 03/17/06
Look but not see.  Anton Philidor | 03/16/06
Look! . . . The Emperor Has No Clothes . . . (nt)  Plain Logic | 03/16/06
Actually suits talking to suits. (NT)  Anton Philidor | 03/17/06
$500 Million can buy a lot of pain...  Scrat | 03/17/06
Intel Not On Board  mighetto | 03/17/06
Interesting Post - Spot On . . . (nt)  Plain Logic | 03/18/06
As If You Didn't Have Enough Of Ballmer  itanalyst | 03/17/06
Microsoft must follow more Standards  wildranger | 03/17/06
But, that's not their business model . . .  Plain Logic | 03/18/06
Well put  April May | 03/18/06
Wow!!!!!  Userama | 03/18/06
ha.  April May | 03/19/06
added note  April May | 03/19/06
It's own workers? Or the rest of us? I'm worried either way.  HypnoToad | 03/19/06

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