Windows 7 Wins on Netbook PCs

Q&A: Brad Brooks, corporate vice president for Windows Consumer Product Marketing, discusses Microsoft’s take on netbook PCs and how Microsoft’s newest operating system, Windows 7, will support these small computers.

REDMOND, Wash., -- Feb. 3, 2009 – Small, mobile and affordable PCs, often referred to as “netbooks” or “mini-notebooks,” were one of 2008’s hottest technology trends. Virtually unknown a year ago, these PCs pushed the design innovation envelope by enabling easy Web surfing, instant messaging, general-purpose computing (e.g., e-mail, social networking and photo sharing) and media playback in one small, ultra-portable device. This convenience, coupled with an affordable price tag, makes these PCs a great option for many consumers.

Brad Brooks, Microsoft’s corporate vice president for Windows Consumer Product Marketing, sat down with PressPass to discuss the company’s take on small-notebook PCs.

PressPass: Almost everyone seems to have an opinion on how netbook PCs will evolve in 2009. What is Microsoft’s view on small-notebook PC prospects in the coming year?

Brooks: The term “netbook” was coined by Intel to define notebook PCs that run on their Atom processor. They’re also sometimes referred to as “mini-notebooks” and “sub-notebooks.” But at the end of the day they are just small, portable PCs, and we’re committed to delivering the same exceptional Windows experience on these machines as any on other notebook or desktop PC.

Over the last 10 months we’ve seen pretty strong demand for these PCs and we expect that to continue in 2009. In fact, research firm IDC recently increased its initial mini-notebook sales forecast for 2008 to 11.4 million, and predicted that number would climb to 42.2 million by 2012.*

PressPass: Most small-notebook PCs today run Windows XP, and this has raised many questions about the impact strong sales of these machines have on Microsoft’s bottom line. What can you tell us about that?

Brooks: We’ve seen spectacular Windows growth on small-notebook PCs as folks opt for the familiarity, compatibility, and ease of use of Windows over Linux. We value every Windows customer, and we’re excited that the vast majority of small-notebook PC users want Windows.

To share some numbers: since February 2008, Windows OS share has gone from 10 percent to over 80 percent on these machines, and our research shows that these are overwhelmingly new PCs and/or PC users. To put it another way, we think most small-notebook PC buyers are either purchasing a secondary machine or buying a PC for the first time. And we think purchasers are drawn to these PCs by their small size and affordability, particularly given the current environment.

So, looking at trends, we’re incredibly optimistic about the coming year.

PressPass: Over the last 10-12 months, what has fueled the popularity of small-notebook PCs?

Brooks: In two words: hardware improvements. When these PCs first hit the shelves, they were designed for people who wanted an inexpensive, mobile computer to browse the Web, do e-mail, instant message and perform other general computing tasks. Computer-makers responded by designing PCs built with lower performing — but also very inexpensive — hardware.
But Moore’s Law, which states that performance at a given price point will double about every 18 months, has worked in the customers’ favor. Today, we see small-notebook PCs with enhanced capabilities and improved quality at the same price points — and sometimes even cheaper — than earlier models.

At the same time, our customers told us that they want mobile, small-notebook PCs to go beyond basic Internet activities and deliver premium capabilities such as increased graphics functionality, which lets people play games, view pictures and watch videos with richer, eye-popping quality.

With Windows, customers get these premium capabilities in a familiar OS that is compatible with the applications and devices they already own and use.

PressPass: How are these small-notebook PCs different from other notebooks and desktops?

Brooks: Small-notebook PCs run the same Windows that people know and love, but there are certain trade-offs customers make when they buy these devices.

For example, they typically have much smaller keyboards and screen sizes and lack a DVD or CD drive, and the small size can make tasks like creating presentations, typing documents, or editing photos and video difficult. Typing over a long period of time can also be a little challenging. Finally, the screen size isn’t optimized for the Web, so plan on doing plenty of panning and scrolling.

It’s important to remember that these small-notebook PCs weren’t designed to replace a full-featured notebook or desktop.

PressPass: Customers who do decide to purchase one of these small-notebooks PCs are also often faced with another decision — Linux or Windows. What do buyers need to consider when comparing the two operating systems?

Brooks: Customers choose Windows because they want the best possible user experience. While many initial small-notebook PCs in the market were Linux-based, they didn’t live up to customers’ expectations. Customers expected a Linux-based PC to look and function like their Windows-based desktop PC and they were disappointed.

Windows provides a level of application and device compatibility you simply don’t get with Linux. Windows works with everyday programs like Microsoft Office and popular applications like Apple’s iTunes and Microsoft’s Zune, PC games like “World of Warcraft,” and a host of others. It also works with the largest set of printers, digital cameras and other devices. Linux doesn’t come close to doing any of these things.

That may be why return rates of Linux-based netbooks are so high. Partners MSI and Canonical have mentioned to press that return rates on their Linux-based small-notebook PCs are about four times those of Windows-based small-notebook PCs.

PressPass: Microsoft has invested heavily in its Windows Live suite. How does Microsoft see these cloud-based tools enhancing the small-notebook PC experience?

Brooks: We’re really excited about what we’re offering with Windows Live Essentials. This suite includes free downloads of Windows Live Mail, Windows Live Messenger, Windows Live Toolbar, Windows Live Writer, Windows Live Photo Gallery, Windows Live Movie Maker beta and Windows Live Family Safety. All these applications help people connect with their family and friends, and they light up the Windows experience. In addition, Windows Live Hotmail and Windows Live SkyDrive, which provides 25 GB of free online storage, deliver on-demand access to e-mail and online file storage.

And unlike an OS, which can take two to three years to develop, Windows Live is on a much shorter development cycle. And we’re always looking at new ways to deliver enhanced functionality and strong integration with additional Web services.

PressPass: How is Microsoft supporting small-notebook PCs with Windows 7?

Brooks: Microsoft is offering a clear path for Windows 7 across the board, so as we demonstrated at PDC, WinHEC and CES, Windows 7 provides a great user experience on small-notebook PCs.

With Windows 7, we’ve matched hardware improvements with some investments of our own. With Windows 7 we are on track to have a smaller OS footprint; an improved user interface that should allow for faster boot-up and shut-down times; improved power management for enhanced battery life; enhanced media capabilities; and increased reliability, stability and security.

These engineering investments allow small notebook PCs to run any version of Windows 7, and allow customers complete flexibility to purchase a system which meets their needs. For OEMs that build lower-cost small notebook PCs, Windows 7 Starter will now be available in developed markets. For the most enhanced, full-functioning Windows experience on small notebook PCs, however, consumers will want to go with Windows 7 Home Premium, which lets you get the most out of your digital media and easily connect with other PCs.

You can find more information on all our Windows 7 SKUs here.

PressPass: What’s the one piece of advice you would give to someone thinking about buying one of these PCs?

Brooks: I tell people to spend some time thinking carefully about what types of activities they want to do with their computer. There are many full-size notebook options out there that are also very affordable and portable. Ask yourself what you want your computer to do, balancing those needs with how mobile you want it to be. There isn’t a one-size-fits-all option.

Microsoft Launches Office Communications Server 2007 Release 2

Q&A: Intel and Sprint discuss how Office Communications Server has transformed the way they communicate, collaborate and do business.

REDMOND, Wash. – Feb. 3, 2009 – Microsoft today announced the general availability of Office Communications Server 2007 Release 2 (R2), which delivers enriched audio and video conferencing, powerful new developer tools, and enhanced voice capabilities.

Today’s release caps a year of growth and momentum for Office Communication Server, during which time it has continued to change the face of business communications by integrating audio, Web and video conferencing, instant messaging and e-mail into a seamless collaborative platform configured around the way people work. In today’s economy, businesses around the world are turning to Office Communications Server to improve productivity, cut costs and deliver the benefits of unified communications to their people.

To mark today’s release, Microsoft Business Division President Stephen Elop was joined by customers and partners for a launch event broadcast to thousands of viewers over the Web. PressPass caught up with two of the companies participating in today’s launch, Intel and Sprint.

Donald Clark, technical services manager of unified communications at Intel, and Michael Browne, vice president of client services at Sprint, tell PressPass how Office Communications Server 2007 has transformed the way their companies do business, enabled them to make substantial cost savings and why– when it comes to unified communications – software makes all the difference.

PressPass: Why did you decide to deploy Office Communications Server?

Browne: Before shifting to Office Communications Server, we had several different communications channels. Employees were using instant messaging, desktop phones, a standalone virtual meeting application and a smattering of videoconferencing tools – none of which were integrated with our Exchange e-mail. Each tool functioned in its own separate silo, which was impacting our productivity. For example, with an audio conference call, employees would have to e-mail a PIN, dial-in number and meeting documents. If these needed to be changed, they’d have to e-mail updates and hope the participants picked them up to receive the latest information.

Consolidating all our communications tools on a single platform with Office Communications Server and Exchange Server opened up an opportunity to simplify management and support. We also wanted to become more agile and responsive - able to turn on a dime to convene conference calls on the fly or switch seamlessly between voice, video, instant messaging and data sharing as the situation demands.

Additionally, like most businesses in the current economic climate, we’re budget-conscious. But we also had a pressing need to phase out a legacy PBX phone infrastructure that no longer met our business needs. Office Communications Server allowed us to make this transition cost-effectively and with minimal disruption to our business.

Clark: We were particularly excited to use the presence functionality within Office Communications Server. It provides a kind of built-in intelligence for communications through the ability to check into co-workers’ availability and determine the optimal way to connect with them. Without this capability, communication can be a lottery, so the ability to put our daily interactions on a tighter, more-efficient footing was a major draw.

Our decision to switch to Office Communications Server was also user-driven. We had a groundswell of employees bringing IM products into the workplace without the requisite enterprise security. With Office Communications Server 2007, we got the encryption and authentication we need.

Additionally, it was a response to the information overload people were feeling. Office Communications Server offered a way to get our arms around the emerging communications landscape and return control to the end user.

PressPass: Why did you choose Microsoft’s software-powered approach to unified communications over a proprietary network-based solution?

Browne: A critical driver for us was software-based presence – the ability to embed presence throughout Office and SharePoint applications, which is something we plan to do with our own custom software applications too. Presence everywhere gives us the ability to pinpoint the most efficient way to reach people at a given moment and eliminate communication issues.

With our existing Microsoft installed base, Office Communications Server was the most economical way to change out about 490 legacy PBXs. Other unified communications options required substantially more infrastructure. Office Communications Server allowed us to leverage our existing Microsoft infrastructure and provide employees with affordable headsets for voice calling.

Clark: For us, Microsoft’s approach meshed with our view that voice over IP is really becoming an application.

And because Office Communications Server is optimized for servers based on Intel’s Xeon processor and PCs with Intel Core 2 processors, we can access richer technological capabilities than we could get from a proprietary network-based product.

Choosing Microsoft’s software-based solution, running on Intel’s servers, also put us on a faster innovation cycle - in terms of access to new capabilities - than we could have expected from a proprietary network-based product.

Additionally, Office Communications Server’s user interface is just like Microsoft Office, so it’s familiar to our people, which meant a minimal learning curve in getting them up and running.

PressPass: What can you do with Office Communications Server that you couldn’t before?

Browne: Lots of things. We recently had a critical budget meeting for which we needed one of our vice presidents. But he was visiting clients in the Philippines. With Office Communications Server, we were able to identify the best way to reach him, utilize voice over IP to place a call to him, and through Live Meeting have him review urgent documents. We were able to get the answers we needed to move forward even though he was conducting business outside the US.

That simply wouldn’t have been possible with the former method of communication. We would have had to guess the best way to reach him and run the risk of holding up a time-sensitive business process. This ability to be very precise and streamlined in our communications has enabled us to drive productivity, cut costs and seize opportunities.

Clark: At Intel, the presence capability has transformed the way we work. It’s the first tool people use to determine the best method of communication in any situation.

With Office Communications Server, our employees are able to use their time more efficiently and get down to business more quickly. It also enables us to collaborate more nimbly across the world. Many of our teams are distributed globally, and Office Communications Server 2007 is a lifeline for them.

And through federation we’ve extended presence to streamline communications with our supply chain. This results in quicker, more informed decision-making in this critical part of our operations.

PressPass: Has Office Communications Server enabled you to save money?

Browne: Just by forgoing handset replacement costs we were able to avoid at least US$5 million in expenses. So far, we have given Office Communications Server voice capabilities to more than 3,000 employees. Already, we’re seeing US$240,000 in annualized savings to date. These are substantial cost reductions that are pivotal to our strategy during the current economic climate.

We’re also cutting down on nonessential travel. But, with people dispersed across the world, it’s critical to facilitate effective communication between them. Consequently, we’ve become power users of Office Live Meeting to maintain rich visual as well as verbal interaction between co-workers.

Clark: With the new features in Office Communications Server 2007 R2, we’re projecting savings of 20 percent or more on our audio conferencing expenditures, in addition to productivity improvements. When you conduct a million minutes of audio conferencing a day, that’s significant.

Also, by permitting us to curtail travel, Office Communications Server helps us address our sustainability goal of being a good global citizen and minimizing our carbon footprint - something our customers care deeply about and expect of us.

PressPass: How have your end users responded to Office Communications Server?

Clark: At Intel, we leave it up to individuals whether or not to deploy the Office Communicator interface on their client PC to access the capabilities of Office Communications Server. The number of voluntary users speaks for itself: Within Intel, 86,000-plus people have opted in to use Office Communicator. That’s more than 96 percent of our work force - the highest usage of any optional product. It’s democracy in action; people voting with their own feet about the technology that best fits them, rather than responding to an official mandate. Now, if I tried to force people to give it up, I’d probably have a riot on my hands.

Browne: Where we have deployed it, our users have really embraced Office Communications Server. It’s simple to set up, and people are finding it a very easy product to just pick up and run with. Microsoft’s products are a foundation of our communications system at Sprint.

PressPass: How do you envision using Office Communications Server 2007 R2?

Clark: We’re committed to continuing to drive adoption of presence, in particular, so it’s embedded across our business processes to keep business processes on track.

The other key component of Office Communications Server going forward will be HD video – the ability to have high-fidelity video coupled with crystal-clear audio just by flipping open your laptop. This capability is enabled by the new generation of business PCs with Intel vPro technology, which we expect to really push adoption of video to enrich business-to-business communications.

Browne: Similarly, one of the opportunities we see is to extend presence more deeply into our supply chain to improve our visibility into the communications status of our trading partners and make interactions with them more effective and efficient. Our assessment is that there are continued productivity and cost-saving opportunities yet to be realized with Office Communications Server.

Global Content Solution Professionals Back New Microsoft Education Platform for Rich Media

Microsoft Semblio software toolset provides rich, interactive learning material for educators.

REDMOND, Wash. — Feb. 3, 2009 — At its fourth annual Global Education Partner Summit, Microsoft Corp. announced a lineup of prominent educational content publishers, developers and software vendors from around the world that intend to use the Microsoft Semblio Software Development Kit (SDK) to contribute to the creation and packaging of content solutions for educators. Built upon the Microsoft .NET Framework, the Semblio SDK will enable developers to reach new audiences and help create new business opportunities and revenue streams.

The Semblio SDK is the first release of three components that make up the Microsoft Semblio platform. Formerly known under the code name “Grava,” Microsoft Semblio consists of an SDK for developers to create and package content; an assembly tool for educators to combine multiple types of content into a single, multimedia package; and a runtime media player that students and educators can use to view and interact with the lessons and presentations. The assembly tool and player will be available with the next version of Microsoft Office.

“Feedback from the education community regarding where the content marketplace is headed has been clear,” said L. Michael Golden, corporate vice president for the Education Products Group at Microsoft. “In today’s digital reality, Microsoft Semblio will help content providers adapt and thrive as they build more dynamic and engaging educational material and reach new consumers with fewer resources.”

Publishers, developers and software vendors using the Semblio SDK include the following:

•	Cambridge University Press in the United Kingdom is the founder of the Global Grid for Learning and is working to make it simple for educators to search for digital resources directly from the Semblio environment.
•	Editis in France, a leading French publisher of educational textbooks, educational games, pedagogical manuals and preschool manipulatives, is developing digitally enhanced textbooks and learning resources using the Semblio environment.
•	Educational Testing Service (ETS) in the United States, a leading assessment company, is using the Semblio SDK to develop a suite of activities and quizzes that will help students (and their parents) determine their individual learning styles and then provide them with tailored guidance.
•	Intel Performance Learning Solutions in Ireland, a division of Intel Corporation, USA, has collaborated with Microsoft to build tools that let teachers and students easily utilize the interactive skoool™ learning and teaching content, and edit the lesson text, lesson sounds and assessment questions to create professional, customizable projects.
•	SMART Technologies Inc. in Canadais the leading provider of interactive whiteboards. Through SMART Notebook software, the company offers native support for Semblio-generated content on its whiteboards, thereby enabling Semblio content to be easily accessible to teachers and students in the classroom.
•	Wolfram Research Inc. in the United States, makers of Mathematica®, is creating the opportunity for teachers to easily add interactive visualization elements built from Mathematica to projects supported by Semblio.

Other companies using the Semblio SDK include Agilix Labs Inc., United States; Cornelsen Publishing, Germany; The Educational Company (EdCo), Ireland; Houghton Mifflin Harcourt Publishing Co., United States; Leszynski Group Inc., United States; and Young Digital Planet SA, Poland.

“While content solution providers in education realize that the digital landscape is continually evolving, it is hard for many to keep up,” said Charles King, principal analyst at Pund-IT Inc. “Incorporating interactive multimedia in teaching and learning materials serves to enhance the value of their educational assets and extend their reach among a variety of audiences.”

The Microsoft Semblio SDK is a collection of .NET-based application programming interfaces, samples, tools and associated documentation for ISVs, developers, designers and content professionals. The SDK is available today and can be downloaded for free by visiting http://www.microsoft.com/semblio.

Additional information about Microsoft’s products, programs and solutions for education is available at http://www.microsoft.com/education.

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass on Microsoft’s corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://www.microsoft.com/presspass/contactpr.mspx.

New Microsoft Premier Support Offering Provides Mission-Critical IT Support

Premier Mission Critical Support expedites incident resolution and mitigates the impact of system disruptions.

REDMOND, Wash. — Feb. 3, 2009 — Furthering its commitment to evolve its enterprise support offerings to align with customer needs, Microsoft Corp. today announced the worldwide availability of Premier Mission Critical Support, a new Microsoft Services Premier Support add-on. Premier Mission Critical Support provides enhanced support for mission-critical solutions through guaranteed response times backed by financial credits, round-the-clock access to expertise and prioritized access to product development teams.

The new service is part of Microsoft’s family of Premier Support offerings. Premier Mission Critical Support delivers personalized support coverage through designated support professionals who understand a customer’s unique solution configuration and deployment environment, facilitating faster response time and more effective problem resolution. Customers will have access to round-the-clock support coverage for high-severity incidents through a dedicated phone line and will always engage with a select team of experienced Microsoft support engineers.

“Customers told us they wanted Microsoft to help ensure that their mission-critical applications remain available and to help get their solutions up and running as fast as possible should they go down,” said Bryan Belmont, general manager, Support and Health for Microsoft Services. “Premier Mission Critical Support is evidence of our longstanding commitment to meeting our customers’ needs.”

In addition, Premier Mission Critical Support issues receive expedited access to the product development teams. This includes end-to-end incident management and ensures the fastest possible root cause identification. Support works with product teams to provide critical, on-demand patch production in severe situations.

Research¹ from Gartner shows that, since 2005, unplanned downtime for mission-critical applications has increased by more than 50 percent in organizations with fewer than 2,500 users and almost 70 percent for organizations with more than 2,500 users. By pairing personalized support processes with expedited response times, Premier Mission Critical Support helps business owners achieve optimal use of their technology investments, minimize system downtime and maintain a fully functional IT infrastructure operating at optimal efficiency.

“Customers are grappling with increasing quantities of data, much of it essential to their bottom line,” said John Madden, research director at Ovum Summit, a leading global consulting and advisory firm. “This add-on complements Microsoft’s portfolio of support offerings, provides a simplified process, demonstrates a commitment to responsiveness and provides dedicated technical resources familiar with customers’ environments.”

Premier Mission Critical Support currently covers Windows Server 2003, Windows Server 2008, Microsoft SQL Server 2005 Service Pack 2 and Service Pack 3, and SQL Server 2008 components of a mission-critical solution.

“More customers than ever before are entrusting their mission-critical applications to SQL Server 2008,” said Dan Neault, general manager, SQL Server product marketing at Microsoft. “With Premier Mission Critical, customers receive our highest level of enhanced support and direct expertise from the SQL Server product team to quickly respond to immediate customer issues, minimize costly downtime and prevent future occurrences.”

More information about Premier Mission Critical Support is available at http://www.microsoft.com/services/microsoftservices/srv_premier_mcs.mspx.

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

¹ Gartner, Dataquest Insight: Unplanned Downtime Rising for Mission-Critical Applications, Ron Silliman, Oct. 3, 2008, Document ID G00161629

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass on Microsoft’s corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://www.microsoft.com/presspass/contactpr.mspx.