Connors said on Tuesday that growing new business against a large base in a difficult spend environment is the third challenge Microsoft faces, while litigation generally is the fourth risk. Connors said there were also several one-time items in the quarter ended March 31 that were "extremely unlikely to recur in coming periods." Microsoft is not planning on a marked increase in the shift to Windows XP Professional relative to what the company saw in the current year.Small and midsized businesses represent the most tangible area of growth for technology companies, especially Microsoft. As such, Microsoft will continue to invest in partner recruitment and development and broad-based demand creation activities. "We will also invest heavily in the next fiscal year to make sure we have massive connections with developers, and we will invest to ensure that we continue to have the best platform for developers worldwide. They clearly understand the advantage of our toolset, our architecture and our overall approach for building the best applications at the lowest cost," he said. Latest Microsoft News:
It is also not planning for foreign exchange impacts in the current year. "And, we will quite certainly not benefit from a significant change in our licensing program as we did in this fiscal years transition to Licensing 6.0," he said.