Partners at last week's conference are pleased with Microsoft's focus on software and hosted services.
Elizabeth Montalbano, IDG News Service
PC World, Saturday, July 14, 2007 11:00 AM PDT
Microsoft Corp. 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 Inc. 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.
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