It is Microsoft's first ordsprog

It is Microsoft's first attempt at the high-end UNIX server market with an NT product.

Richard Scocozza

There is little question that Sun is rapidly gaining market share, but there may also be evidence of a market turn-up for Internet servers at the same time as a turn down for legacy systems. Sun is the long-term winner in the UNIX category and we still do not see how any UNIX competitor can catch them. Sun is the best-positioned UNIX server vendor, with more than twice the UNIX server market share of any of its competitors.

There is little question that Sun is rapidly gaining market share, but there may also be evidence of a market turn-up for Internet servers at the same time as a turn down for legacy systems, ... Sun is the long-term winner in the UNIX category and we still do not see how any UNIX competitor can catch them. Sun is the best-positioned UNIX server vendor, with more than twice the UNIX server market share of any of its competitors.

Last quarter there was $1.5 billion in Linux server sales as an industry, with Linux server revenue growing eight times that of the overall server market at 42 percent, versus five percent growth for the total sever market. That growth was also more than four times that of Microsoft's Windows Server, which gained 10 percent.

[The second was the first beta of Windows Compute Cluster Solution, a version of the OS aimed at scientific and financial customers who need compute-intensive systems consisting of large server clusters. This is part of Microsoft's push into high-performance computing environments, areas where it's not been particularly successful, and where Unix rules.] The problem is a compute cluster solution has not been delivered by Microsoft [in the past], ... Our goal is to build a complete platform here. Compute Cluster allows people to build applications that scale across a large number of machines.

[The company isn't trying to tackle the entire x86 market, where shipment volumes are high and profit margins low.] We carefully exclude from our product the volume server infrastructure, ... We think there are plenty of players in that market, it's heavily commoditized and we don't know how to add value there.

Sharad Mehrotra

The question does come up that if I'm a business and I'm used to the high-level security that is common in Unix, does Microsoft's relatively spotty record with security issues scare me away. And is that going to create some kind glass ceiling above which Microsoft cannot proceed?

Charles King (1889-)

Corporate customers are choosing the Microsoft platform. Microsoft Office, SQL Server and Exchange all reached new highs this quarter, with shipments of all server applications nearly doubling in the past year.

Users described interest and excitement over AMD's 64-bit Opteron server capabilities, citing price performance advantages over Intel-based boxes, both for 64-bit Linux installations, as well as running in 32-bit mode running Microsoft Windows Server 2003. With the 64-bit version of Windows Server, which is supported on Opteron, beginning to enter the market, users are hoping for even greater performance for Windows Server installations.

Users described interest and excitement over AMD's 64-bit Opteron server capabilities, citing price performance advantages over Intel-based boxes, both for 64-bit Linux installations, as well as running in 32-bit mode running Microsoft Windows Server 2003, ... With the 64-bit version of Windows Server, which is supported on Opteron, beginning to enter the market, users are hoping for even greater performance for Windows Server installations.

Microsoft's exit from this market should lead to more rational pricing and likely improved profitability for Intuit's TurboTax. In an attempt to gain market share, Microsoft dramatically cut unit price, a move Intuit was forced to match.

[While Microsoft has gobbled up tons of market share in the volume-server market over the past few years, it has been dogged by the widely held notion that Windows can't support very large, enterprise-level implementations.] The oldest issue we've dealt with is scalability, ... Today we should be able to completely convince you that there is no job that is too big to run completely on the Microsoft platform.

Steve Ballmer (1956-)

The Unix server business is more of a wild card. They're either going to have to gain some market share or accelerate their efforts on the services and software side. But the markets they're going after certainly support that kind of growth.

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By providing tighter integration with BizTalk Server 2006, SQL Server 2005 and Visual Studio 2005, Commerce Server 2006 enables customers to reduce costs and accelerate revenue growth through automated delivery of online services and products. Commerce Server 2006 enables new and existing customers to use the latest Microsoft technologies and thereby enjoy all the benefits of the latest generation of the Microsoft application platform.

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