Microsoft Communications Sector Strategy Briefing, August 17th 2005

Aug.18.05 | About: Microsoft Corporation (MSFT)

Here's the entire transcripts of Microsoft's August 17th Strategy Briefing with financial analysts to discuss its communications strategy. Note the comments about integration of Microsoft's instant messenger client with other Microsoft Offic applications:

Communications Sector Strategy Briefing with Financial Analysts
Who: Michael O’Hara, GM, Communications Sector
When: August 17, 2005
Where: Live Meeting - Communications Sector Strategy Briefing with Financial Analysts

JOE BINZ: Welcome, everyone, and thanks for joining us today for a discussion of Microsoft's communication sector strategy.

Before we begin, I'd like to take care of the following administrative details. We may make statements in this call that are forward-looking. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed during this conference call and in the management's discussion and analysis section of our 2005 Form 10-Qs, our 2004 Form 10k and other reports and filings with the Securities and Exchange Commission. We do not undertake any duty to update any forward-looking statements.

As always, a replay of this Live Meeting will be made available at the Microsoft investor relations Web site.

I'm pleased to be joined today by Michael O'Hara, General Manager in our communications sector.

For those of you who may not be familiar with how the communications sector fits within the broader Microsoft organization, I'll provide some brief background. The communications sector group is led by corporate vice president Maria Martinez, and is organized under the Mobile & Embedded Devices division. This group markets and sells Microsoft products, solutions, and services developed across our seven business groups to telecommunications service providers around the globe. These offerings can range from desktop products such as Windows and Office to infrastructure server software to IPTV software and carrier hosted applications such as the Microsoft solution for hosted messaging and collaboration. The communications sector also does some customized development for telecommunications service providers.

We do not break out specific sales numbers for the group, but have stated that annual sales to communication sector customers exceed a billion dollars. Again, these revenues are reported across our seven business groups.

Lastly, as we discussed during our Financial Analyst Meeting in July, we have made good progress in establishing new relationships and strengthening existing relationships with these customers across a number of different fronts. We expect this to continue, given our growing focus on delivering a wide range of software services into the future.

Format-wise, Michael will walk through a presentation detailing our strategy in the communications sector, which will then be followed by a Q&A session.

Please note that only those of you participating via Live Meeting will be able to see the presentation slides and submit questions. We ask that when you submit your questions via Live Meeting you also include your name and firm. I'll then read the questions for Michael to answer. We may not have time to answer all the questions, so if you have further questions after the call, feel free to contact investor relations and we'll be happy to follow up with you.

So with that, I'd like to turn the call over to Michael O'Hara. Michael?

MICHAEL O'HARA: Hi, thanks, Joe, and good afternoon, everyone, and thank you for joining the call.

As Joe mentioned, my name is Michael O'Hara. I'm the general manager for the service provider business within the communications sector at Microsoft, as well as marketing for all of the communications sector.

I've been with Microsoft for around about a year. I'm a career telecoms guy. I spent two years previous to Microsoft as a VP of marketing at Sonus Networks, and prior to that 15 years at Nortel Networks.

As Joe mentioned, I'm going to walk you through a presentation, and then I'll be happy to answer any questions you have at the end of that.

Talking to chart four, now on the screen, and I wanted to start with a high level statement around what Microsoft is achieving in the communications sector. If you talked to me probably two years ago, I would have said that service providers would have looked at Microsoft as a trusted IT supplier, as someone they worked with for desktop and server infrastructure.

What we're driving forward as the communications sector to achieve is to become a strategic partner for our service provider customers in every aspect of their business, and specifically as I mention in this statement looking at helping them develop and deploy revenue generating services.

The following slides will walk you through how we see that happening.

Before I do that, I'd like to take you through some trends and some analysis that we've done in the communications sector space, and give you some feeling as to how we've arrived at our current strategy.

So I'm now on chart number five, entitled "Communications Sector Trends".

So these go in pairs. On the left-hand side you'll see a series of service trends, on the right-hand side you'll see a series of technology trends. And I look at them in pairs; the service trends may drive the technology trends, the technology trends may drive the service trends, but the important point is that we see these going in pairs. And I do realize this is a high level analysis.

So starting at the top, obviously strong demand from our customers for triple-play offerings in voice, video, and data services, and we believe that's being driven or is driving a lot of broadband demand, deployment of broadband systems, both in wireline and wireless network architectures; so DSL and fiber certainly in the wireline world, EVDO, Edge, Wi-Fi, WiMAX, whatever in the wireless world. So this is certainly the first pair of trends we're hearing about.

The second trend is a lot of pull from our customers around wireline and wireless convergence, bringing these two networks together. And in terms of the technology trends to support that, we're seeing a lot of interest in what's known as IP Multimedia Subsystem or IMS. IMS is essentially the first architecture that's been agreed upon between wireline and wireless service providers, so it gives a really powerful basis for people to build converged networks going forward. Essentially if you're in a wireline world you have a DSL access MUX or a fiber connection; if you're in a wireless world, you have a cell tower or a Wi-Fi connection, but the infrastructure sitting behind that last mile access is similar or is actually identical in both cases, so it gives you a really solid foundation for creating a converged network.

The third pair of trends we're seeing are around services over IP or what we call SoIP. Certainly the industry has gone through a lot of interest in voice over IP and we're now seeing a very, very strong pull from our customers to deliver multiple services over their IP infrastructure, moving beyond the initial VoIP service and putting together bundles of services that target their customers. In terms of a technology trend supporting that, we're seeing a lot of interest in Web Services, service-oriented architectures, service delivery platforms, to use a few industry terms.

The fourth pair here is around digital content. There's strong interest from our customer base in allowing their users to consume digital content, and obviously a following technology trend around how you distribute that content securely and how you rights manage that content going forward.

And if I net this chart out overall, I'd say that in terms of service trends, we believe that service aggregation, the ability to deliver multiple services over IP networks will be the new killer application in networks. In terms of technology, we believe that service delivery is the key technology battleground in telecommunications going forward.

Moving on to chart number six, entitled "Communications Sector Model", so if I take those trends and build up our view as to what the industry looks like, I arrive at a four layer model with an additional layer on the right-hand side. And I'll walk through this quickly from the bottom upwards.

As we mentioned, we're moving to an IP network, wireline and wireless, a converged, single IP network running over optical or whatever, but essentially it's an IP network in both the wireline and the wireless environments.

The next layer up we call network control, is where we talk about IP multimedia subsystem becoming a key player. The industry has moved from SS7 through soft switching, and we believe IMS is the next logical step in that evolution. And IMS is really the ability to interconnect points on the IP network that lays below, so it's the control layer for the IP network.

The third layer of this chart we call the service network. This is where we see traditional telecom services existing, but also we see the emergence of Web Services, standardized Web Services that exist today like Amazon.com, eBay, PayPal, whatever, living on a service network, along with traditional telecom services, services like TV over IP, services like hosted versions of Microsoft's applications like hosted Exchange living on a service network.

And very much in the way that a network control layer is used to control the IP network, we see the emergence of a service control layer to control this service network. That's the top layer of this chart. We're using the generic term here of "service delivery platforms". And this is really a class of solution that allows you to manage, amalgamate and deliver services done over the IP infrastructure.

Then sitting onto the right-hand side we have our OSS/BSS, which we believe will migrate towards standardized Web Service interfaces that can work and hook into the four layer architecture that we've outlined here.

Moving on to chart number seven, entitled "Communications Sector Strategy", I just want to use the same layers and talk through exactly where Microsoft sees its opportunity in this model.

So the bottom layer of this chart, the IP network, we're not looking for a Microsoft opportunity, it's not an area we're focused.

In terms of network control, again no direct Microsoft opportunity. We're not out building an IMS architecture or an IMS solution.

What we are looking for is strong partnerships with key network equipment providers on IMS architectures so that we can agree on the boundaries and the differentiation and the interfaces between services, service networks, and service control with the IMS architecture.

The third layer up on this chart we call the service network. We see a strong Microsoft opportunity to deploy applications and platforms in service provider networks, initially delivering triple-play services and then moving beyond that to deliver more complex offerings.

And the top layer of the chart, as I mentioned, service control, we see a strong Microsoft opportunity to be a leader in this space with a solution we call the Connected Services Framework, which I'll talk a little bit more about in the coming charts.

And then over to the right-hand side, OSS/BSS, we're looking for partnerships with key OSS/BSS vendors to complete this solution, so key OSS/BSS vendors, and a promotion of Web Service standards within the OSS/BSS community, so strong work to make sure that everything that is happening in the OSS/BSS world meets and is interoperable with what Microsoft is doing.

So I move on to chart number eight. I've essentially taken the communications sector model and modified the top two layers, so added in some service offerings that we would see in this service network, and see it in our product name, the Connected Services Framework in the service control layer.

As I talk to the service network, starting on the right-hand side, data services that can be offered over carriers' networks. We have examples here like hosted messaging and collaboration, which is essentially hosted e-mail, IM and SharePoint services running in a carrier's network and delivered to small businesses and end users.

We obviously have Live Communication Server, our Presence Server, and I'll talk a little bit more about how that plays in terms of voice over IP going forward. We have great examples like Xbox Live, which is a hosted gaming service on the network, over two million users on that service now. We have Office Live Meeting, which we're using today, which is essentially a Web conferencing service that can be hosted in the network and delivered to end users and businesses.

Some examples of data services: In the video area we obviously have our MSTV solution. I think everyone has heard a lot about what we're doing in MSTV, and I'm not going to spend a lot of time on MSTV today, but it's obviously the video leg of the triple play.

And then if we talk about voice, it's an area where we didn't have an offering prior to SUPERCOMM this year. We made some strategic announcements, which I'll talk about in the coming charts, where we're enabling a voice over IP offering that we believe will be compelling for our customers.

Chart number nine, so what I wanted to do is really walk you through the key announcements we've made year to date that really fit and back up the strategy that we've outlined to you here.

So starting at the top, January the 10th we launched our hosted messaging and collaboration service, so as I mentioned, this is hosted Exchange, hosted Messenger, and hosted SharePoint. It's an offer that's hosted by carriers and delivered to small businesses and consumers.

January the 28th we added Verizon to our customer list for Microsoft's TV platform.

In February the 14th at 3GSM in Cannes we launched the Connected Services Framework, the product I discussed that fits into the category of service delivery platforms; and we also announced initial deployments with Bell Canada, Celcom Malaysia, and BT in the UK.

On March the 8th we launched the latest version of our real time collaboration suite, including Office Communicator, and that becomes an extremely important component for us in voice over IP, which I'll talk to in the coming charts.

On chart ten, SUPERCOMM announcements. We made a series of announcements at SUPERCOMM to underline our strategy. The first one was the strategic agreement with AT&T on services over IP, so essentially AT&T adopting Microsoft Connected Services Framework as the foundation of their services-oriented architecture going forward.

We announced an agreement with Sylantro Systems on voice over IP. So the way I describe this is if you think of hosted messaging and collaboration as hosted e-mail in a carrier's network, Sylantro's solution is essentially a hosted PBX in the carrier's network. By combining those two offers together, we believe we would offer carriers a really compelling offering that they can take out to the small business community.

The third announcement was an agreement with Amdocs on the OSS/BSS, so as part of that announcement Amdocs announced it would integrate with our Connected Services Framework solution, that they would port onto the Microsoft platform, and they're also cooperating with us on the development of Web Service definitions for the OSS/BSS space.

So I think of this as building the ecosystem around our solutions and making sure that everything we are doing in service delivery is interoperable with what's in the industry today.

And the fourth was an agreement with Accenture to use Microsoft Connected Services Framework as the core of their service delivery platform going forward; again, a really important go-to-market partner for Microsoft as we take this solution to market.

So I go to chart number 11, just two more announcements that I wanted to cover quickly. On June the 28th we announced that BT was the latest customer to select Microsoft TV as their software platform for TV over broadband.

And on July the 6th we announced an agreement with France Telecom, who are adopting Connected Services Framework as the core of their service-oriented architecture going forward.

So again momentum across all areas that we've talked about in our business and our strategy, and I think these are all key announcements.

A little bit more detail on a couple of these, I wanted to pick out the AT&T agreement, and just underline what we're doing there. So this is a complete services over IP play. AT&T is essentially implementing our Connected Services Framework solution, integrating it with their global IT backbone network, and we're working together on a five-year roadmap of innovative services that AT&T will offer to their customers.

It is a strategic agreement that has financial and marketing commitments on both sides, so it's a very strong commitment by both of our companies to work together on services over IP.

It also gives AT&T a position with Microsoft where they sit on our Customer Advisory Board and help us shape and define the direction of our product going forward.

Chart number 13, the agreement with Sylantro, I also wanted to highlight what we were doing in voice over IP in a couple of key areas here. So I think the voice over IP market is moving into its second what I would call mainstream phase. Long distance networks went voice over IP probably around about 2003. We believe it's time for mainstream business and consumer voice over IP. Class 5 replacement I think was a red herring that certainly wasn't going to be something that was really driving the market going forward. What we believe is that business and consumer VoIP availability is going to be driven by broadband and broadband penetration, but we also believe very strongly that business and consumer VoIP adoption will absolutely be driven by the user experience and how easy we make voice over IP services to use and add additional functionality for our customers. And I'll show you some screenshots about what I mean there.

Chart 14, entitled "Hosted Messaging and Collaboration", so when I talked about our hosted messaging and collaboration service, I wanted to show you what that looks like in a simplified form in a network. So in the service provider network we would have a hosted Exchange server, a hosted Live Communication Server, an Active Directory and Windows SharePoint Services to facilitate document sharing and storage.

On the enterprise or consumer premises we have Office Communicator and Outlook loaded on the PC, and essentially the enterprise or consumer would pay a subscription and access from the carrier the services rather than having to buy their own infrastructure.

So I go to chart number 15, and I wanted to demonstrate what we announced at SUPERCOMM in terms of adding Sylantro's voice capabilities to this offering.

So in the top half of this chart, the service provider piece of the chart, you can see that we've added a Sylantro voice server, and we've added our Connected Services Framework solution.

I've also highlighted in red that there is a soft switch and media gateway required to handle functionality and connectivity back to the PSTN and that's not an area that Microsoft is focusing. We expect network equipment provider vendors to provide that capability.

If you look at the enterprise or consumer, now the consumer can buy a subscription for e-mail services, messaging services, but also add in phone services into the bundle. So for our service provider customers, we see them being able to offer a more powerful, feature rich, and integrated package to small businesses, which we believe will help drive their sales and marketing forward.

Chart number 16 I wanted to show you some of the user experience that we're enabling as part of this hosted messaging and VoIP offering. So these are screenshots from Office Communicator, which is the client of our Live Communication Server.

On the left-hand side you can see how really rich presence information flows into Office Communicator, the IM client. So here you can see that Michael Patten has been highlighted that he's in a meeting, that his calendar says he's busy but he's free at 11:00 AM.

So using traditional IM clients that are out in the marketplace, you can set presence information, you can set that I'm busy or I don't want to be disturbed. A great feature of Office Communicator is that it reaches into Outlook and pulls this infrastructure from the Exchange Server and displays that. And obviously you can turn this functionality off if it's not something you want to display.

On the right-hand side of this screen we have an example of how out of office alerts set in Exchange and Outlook flow through to the IM client. So in this case, Mary Clarke is offline and out of the office, and the out of office message that you would receive if you sent Mary an e-mail appears in the IM client, so as a popup so people can see exactly where Mary is.

These are a couple of examples of the presence and the richness of the presence information that Office Communicator enables.

On chart number 17 I have a screenshot that shows how this Office Communicator client can be used to launch voice over IP calls. So in this case I want to call Eric Anderson. I click on the Call icon and I get a popup display showing his desk number, his mobile number, his home number, or actually the ability to launch a computer-to-computer call. And simply by clicking, it will launch a voice over IP call between my phone and Eric's phone wherever he is; so really starting to make the call control capabilities really simple and really available to people from within their desktop software.

Chart number 18 shows an example of call management when you're not in your office. So in this case I'm logged onto my corporate network but I'm not sitting at my desk, and my desk phone rings. The little popup screen on the right-hand side will pop up saying, hey, your desk phone is ringing, would you like to forward the call to your mobile or to somewhere else. And simply by clicking on the mobile, that call would be immediately be rerouted to my cell phone, allowing me to take the call if I chose; again, just really simple, easy ways to simplify your life and control calls from remote locations.

And then really moving us on a stage further, on chart 19, showing how all the capabilities that are available within their IM client now become available from within Outlook. So on the right-hand side of the screen here I can see that Eric is online, he's currently busy, he's free at 12:00. I can see where he is, I can send him an e-mail, I can send him an IM, I can launch a call or a Live Meeting from this popup menu; so again another level of integration, making it really easy to launch these capabilities.

And if I move onto chart 20, just showing you how that it's not only within Outlook, but we can actually take this a step further and launch calls from within Excel by highlighting Ken Martin's name here, popup menu, I can see the presence information for Ken, I can call him, mail him, IM him, whatever I want to do, launch a Live Meeting; it's all there within the common desktop applications.
Chart 21, entitled "Triple Play Services and Beyond"; so picking that cloud diagram that I talked about earlier and really moving us a stage further, I've now added in an Xbox Live server, an MSTV video server, along with the voice server, the hosted Exchange server that we talked about before into the carrier's network.

And now what I've created in the enterprise or consumer space is the ability to offer a large bundle of services over the IP infrastructure, so the desktop applications certainly but also Xbox applications, Microsoft TV applications, and voice applications, voice over IP applications; so really starting to create a compelling bundle.

I'd love to be able to show you a live demonstration of this but it's not possible over Live Meeting, so I'm going to walk you through some screenshots that show you exactly how this works.

So I'm on chart number 22. So the scenario here is that Steve on the left-hand side of the screen is sitting at home watching his television, and John, shown on the right here, turns on his television set to watch a motor race on channel 12. On Steve's screen he'll get a Messenger popup that will say, "Hey, John's just turned on his TV and he's watching channel 12". By selecting with his remote control channel 12, Steve can launch a picture-in-picture to see what John is watching. So you can see this on chart number 23. So a picture-in-picture comes up, so Steve can now see exactly what John is watching.

Steve decides he's going to watch the same program as John, so the two guys are now watching the same show. The service logic in our Connected Services Framework can recognize that event happening and decide to add additional services to the scenario.

So in this case, beside John's name you can see the channel 12 icon, but you can also see a phone icon and an Xbox icon, so essentially Connected Services Framework has offered two additional services to Steve that he can utilize with John.

So the guys decide they want to have a conversation, Steve uses his remote and clicks on the voice icon or the phone icon, and that essentially launches a voice over IP call between Steve using a headset plugged into his television, John using a standard voice in his house that's connected to an IP connection through a DSL modem or a cable modem. So now you have these two guys watching the motor race talking voice over IP.
I think as they've moved through the scenario, they've decided that they'd actually like to race for themselves. So on chart number 26 Steve highlights the Xbox icon to launch an Xbox session, and as shown on 27, that brings up an Xbox invite screen on John's saying Steve is requesting to play NASCAR 2005 in an Xbox Live session. John accepts that and we get to the scenario on chart number 28 where the two guys are playing an Xbox Live game, watching a picture-in-picture, which is possible through our TV service, of the real race, talking voice over IP and IMing each other as they do so.

I think in this scenario you can see that there's actually four services being deployed simultaneously through the carrier's network. It's certainly going to generate strong dollars for the operator as they offer these types of services, and I think this is a really compelling example of what we mean by Connected Services and how Connected Services are going to be deployed going forward.

And chart number 29 is my last chart. I wanted to summarize what we've talked about a little bit here. So as I've mentioned, Microsoft is fully committed to being a strategic partner for our service provider customers going forward. We've put a lot of focus in the area of compelling Connected Services, and also the infrastructure required to support them, so specifically our Connected Services Framework offering.

We believe that we can help our customers deliver triple-play services but then move beyond the standard triple-play into some really value-added revenue generating services.

We believe we've got really strong credentials to succeed in this space. We brought a lot of industry expertise in from the communications industry. We have a secure, reliable standards-based solution. Everything we've talked about is based on standard Web Services interfaces. And we're supported by a huge partner and developer ecosystem that we bring to bear, and really allows the operator to take what we're offering and also develop our own customization and services on top of the platform.

That's as much as I'm going to say. If you want to read more about this, Microsoft.com/serviceproviders or come and see us at VON Fall in Boston September the 19th through September the 22nd.

I'm going to pass the call back to Joe if we want to take any questions.

JOE BINZ: Okay, thanks, Michael.

We'll now turn to the questions that have been submitted via Live Meeting. And the first question that comes in is, "What do you see as the sweet spot for software as a service for operators, and do you think that enterprises will adopt this model".

MICHAEL O'HARA: So I think it depends. Let me talk about enterprises and adoption of this stuff. It's an interesting thing; we think the sweet spot is small to medium businesses initially, so we're seeing a lot of demand from small to medium businesses for this type of software as a service offering.

We believe there's potential for this to really expand into large enterprises and to consumer scenarios, so we're extremely excited about the possibility, but I would say the sweet spot initially is the small to medium business space.

JOE BINZ: Okay, our next question comes from Sri, and he asks, "Could you talk about potential competitors in the service control and service network layers".

MICHAEL O'HARA: Sure. So the service network in itself I mean really is just an amalgamation of applications and services, so Microsoft applications and services but also anything that people build using a standard Web Service interface, so I don't think of it as competition in that space as much.

In the service control area there are a number of companies that play in this space. I would mention IBM, HP, BEA as people that have offerings that do similar functionality.

I think what you'll see from Microsoft is that we've productized our solution very heavily here, so we're doing what Microsoft does well, which is productize and bring to market a complete offering. I think you'll find with some of our competitors' offering that there will be some products, some consulting, some integration services as part of that, so there's not a direct comparison; but certainly those are guys we see as competition.
There's also obviously the equipment providers that provide the lower two layers of this chart that are interested in providing apps and services over the network, and as I mentioned, we're looking for strong partnerships there but essentially there could be competition in that space as well.

JOE BINZ: Okay, great. The next question we've got is around IMS and specifically, "What is Microsoft's IMS strategy".

MICHAEL O'HARA: Sure. So I think as I mentioned as we went through here, we're not building an IMS. We believe the IMS is a really, really important development for the industry, as I said, it's the first time that we've had a combined architecture for wireline and wireless networks, and that gives us a really strong platform upon which to deploy services.

So putting IMS in place, putting the IP network in place, I think we have the possibility, and essentially the carriers that are going to be successful in this space are those who can deploy multiple services on top of that infrastructure.

So the work we're doing in service delivery and building out this service network we believe is going to be key. The carriers that embrace this I believe are the ones that will ultimately be successful.

JOE BINZ: Okay, we have a couple more questions. Feel free to submit your questions if you have any for Michael.

The next question comes from Margaret of Starpoint Consulting, and she asks, "Regarding the hosting offerings, is that offered through partners and specifically a partner like NaviSite," if you're familiar with them.

MICHAEL O'HARA: So I don 't know NaviSite specifically, but we do offer this. Essentially the hosting offering goes through service providers and hosting companies. So I can check for you and give you an answer back on NaviSite, but these offerings are sold through our service provider partners. They're not direct sells from the communications sector. I should have mentioned that the mandate for communications sector is to sell through service provider partners, so everything I've talked about today is essentially offers that we're making through our service provider partners.

JOE BINZ: Okay, the next question is, "What is Microsoft's service over IP strategy".

MICHAEL O'HARA: So I think we've talked a lot about that as we've gone through the call. We obviously believe that Connected Services and multiple Connected Services over IP are really important. So delivering services over IP requires this service delivery platform and this area of the business, so strong focus for us in terms of building Connected Services Framework and getting some really deployments of that—I mentioned five customers that we've got on board already—and that's a key element of our strategy here.

JOE BINZ: Okay, great. The next question is, "How did Microsoft select Sylantro as its partner for voice over IP".

MICHAEL O'HARA: So Sylantro are one of the leading providers of class five VoIP service features in the marketplace. So as I mentioned, it's a hosted PBX, it's a hosted IP PBX that fits in the network, and it's a very strong parallel to what we do in terms of hosted Exchange in the network.

Sylantro are, as we said, one of the leaders. They have strong deployments out there. We had a number of common customers. We had a lot of willingness from Sylantro to move both onto the Microsoft platform to work through the integration with Connected Services Framework, and go to market together.

So it's not an exclusive relationship, Sylantro are the first guys that we've chosen to work with, and we'll work through some early adoption program with Sylantro this year, get some carriers up and running I would expect by the end of the year, and then look at other partners in this space.

JOE BINZ: Okay, we have no further questions. So, Michael, I was wondering if you wanted to add any final comments.

MICHAEL O'HARA: Sure. So we appreciate everyone's time, we appreciate you listening in. I think this is a very exciting area for Microsoft. It's certainly an important move for us moving into telecommunications with clear services that move us into becoming a strategic partner for our customers. And I would expect that we'll be talking more and letting you see more examples of what we can achieve and what we can deliver in the coming months, so thank you very much.

JOE BINZ: Great, thanks, Michael, and thank you, everyone, for participation in today's Live Meeting.

As I mentioned earlier, this Live Meeting will be made available for replay at our investor relations Web site. Thanks again for joining us today.

END

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