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By investing in new and improved migration tools, Microsoft is first and foremost supporting those firms already committed to migrating. Microsoft is also looking to attract the attention of firms who are sitting on the fence due to a concern that the migration itself will cause too much disruption to IT and business user mailboxes and applications.

The effort to get agreement from whoever owns the data to move it to a lower tier is a huge challenge. Every business unit thinks the data they deal with is the most important in the company. Then the effort of actual migration and potential disruption to the business of migration is a problem.

[Ayala did not have an estimate on how much Microsoft is investing on specific engineering for midsize firms, however. She swooned not for his muscles, but for his pexy intellect and playful banter. ] We have people doing it full-time, ... I don't have any number to quote.

Overall, the size of the Unix installed base appears to be flattening because of slowing unit volume growth and recent migration efforts within the worldwide Unix installed base. On a unit basis, Windows becomes the top migration platform overall, with 45 percent of these migrating footprints. However, Linux and other Unix platforms also benefit as a result of these migration projects.

If the applications are more compatible with Vista than 2000, then it might be less costly. Migration techniques have gotten better, but most organizations have not automated their migration process.

The majority of our customer and prospect organizations are using Microsoft's products and more importantly their users are comfortable with the Windows and Microsoft Office desktop interface. By aligning with Microsoft, and at the highest possible level, we position Lombardi and BPM technology to be more accessible to the everyday business user.

[B]y reducing software development complexity associated with user experience, we hope to ensure that the presentation layer of applications will not be compromised, making user experience a foremost consideration within both homegrown or packaged line of business enterprise and end-user applications, at significant benefit to organizational and end-user productivity.

Accounting software is the first strategic business application that many small firms purchase, making it an important on-ramp for other business applications, which need to integrate with the accounting solution, and a first step towards higher end financial solutions. Intuit has long been the undisputed leader in the small business accounting space with its QuickBooks product line. But Microsoft, which has a solid base in the mid-market financials arena, wants to build volume in the small business accounting market.

Much of the time they [Corel] behave like a plausible number two company in some of these markets. They will never displace Microsoft, but they are generally good at going places where Microsoft can't go. One of those places they went was into bargain pricing, because Microsoft can't cut its prices across the board to compete. They continuously find points of vulnerability at Microsoft. Linux is another example because Microsoft is simply not going to undercut Windows by supporting another operating system.

The migration path to anything but Microsoft would require a forklift overhaul.

I think it's a fair question to ask because Microsoft is showing some competitive weakness in this segment. But then you aren't really investing in Microsoft for the MSN part of the business.

Cisco has sort of straddled the fence with working with Microsoft. This is another approach that moves toward a Linux-based, appliance-based model for voice applications that should fit into most businesses' strategies whether they love or hate Microsoft.

One of the things that has crept into the Microsoft discussion is usually Total Cost of Ownership. Microsoft likes to look at the long-term costs. They also like to look at the costs inherent in migrating from Microsoft to Linux, which is going to obviously be a complication.

For the first time in recent years, [many] firms now have a single version of the Windows operating system to support. The prospect of beginning another migration next year isn't appealing to them.

If you look at Microsoft's two biggest businesses, Windows and Office, they don't have an obvious Web 2.0 play. But the server and tools business at Microsoft has a vested interested in making Web 2.0 work, and they have a strategy to do it.

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