And what about the still-standing issue of cost control for IT? There is still a huge pressure to save existing costs. That is why I am featuring SMS [Systems Management Server], which is about distributing and keeping software up-to-date with a lot less operational costs, and our ISA [Internet Security and Acceleration] server, which is about securing the perimeter in a very rich way without much operational costs.Weve always pushed the technology to the limit. We use Web services to look at our customer information so people can have exactly the customized view they want. There are about 400 SharePoint sites created every day at Microsoft. Over the years you have occasionally issued a "call to arms" memo when you felt the company was behind in some area. You did it with the rise of the Internet and more recently with security and the Trustworthy Computing initiative. The rise of RFID [radio-frequency ID] tagging and tracking has been called "the Internet of things" and is being pushed along by a range of companies including Wal-Mart. But Microsoft does not seem to be a major player here. Is another memo on the way? We are very involved in RFID with tools. RFID is an exciting way to gather information, but it is not moving to the item level overnight. It plays a lot of the same role that case marking with bar codes did. It fits very well with our idea of information availability. Is Microsofts strategy to be a better distinct alternative to heterogeneous computing environments or a better player in those environments? I dont understand that distinction. We have been doing interoperability with mainframes and Unix for over 20 years. But Unix systems have been your primary competition. In the past decade Unix, in all its forms, has been our primary server competitor. And what about Linux? It is gaining share in the Unix space. But not at your expense? Our aggregate server share, year to year, was up according to most industry observers. Certainly, the Windows share of servers is strong. So you dont see Linux as a strong competitor? It is a competitor primarily on the server. Next page: Trustworthy Computing: Still top priority?
And is Microsoft using those new technologies internally?