In the past, it was often too difficult or expensive for small businesses to use the full suite of Microsoft business applications. Last November, Microsoft announced Microsoft Online Services for businesses of 5,000 employees or more, and today, they announced that they were expanding availability of Online Services to businesses of any size. Also announced today is a free beta trial of the services. From today's press release:

"Based on the proven, business-class software available in Microsoft Exchange Server 2007 and Microsoft Office SharePoint Server 2007, the new services enable businesses to access e-mail, calendaring, contacts, shared workspaces, and webconferencing and videoconferencing over the Web. The new services are managed through a single Web-based interface, designed to meet the needs of IT professionals. Through this security-enhanced interface, IT professionals can monitor the performance of the services, add and configure users, submit and track support requests, and manage users and licenses."

With Exchange Online and SharePoint Online, Microsoft is embracing cloud computing for businesses much they way that they have embraced it for regular users with Microsoft Windows Live. The real question is whether businesses are any more ready than regular people to depend that heavily on the Internet for all of their office applications.

Huh? Microsoft has pulled an unprecedented move by dropping the prices on a couple of variants of the Vista operating system. Vista Ultimate will drop from $399 to $319. The Vista Ultimate upgrade drops from $259 to $219. Vista Home Premium upgrade will drop from $159 to $129. Given that there really has been no real “ultimate” in Vista Ultimate, I guess on some level this makes some sense to somebody, but in the end retail customers will get an opportunity to save some money.

Ina Fried on Cnet had the chance to talk to to Bill Gates after a speech.  Bill Gates said in an interview:

"The version after Vista is a big step forward in terms of speech," Gates said in an interview following his speech at Stanford University. "It's a big step forward in terms of ink. It's a big step forward in terms of touch."

Interesting statement...  It will be interesting to read the full transcript when it is finished and posted.  Look for that sometime today!

Microsoft chairman Bill Gates says he wants to "equip a new generation of technology leaders with the knowledge and tools they need to harness the magic of software." So, he's giving away software development software to current high school and college students.

If there was any lingering doubt about where Microsoft sees the future (online services and advertising), then that got erased this morning with news that Microsoft is bidding to acquire Yahoo for $45 billion. This news comes after recent word of layoffs at Yahoo. Here’s the press release on the news. Of course this is just the beginning and who knows what it means for existing Microsoft services like Microsoft Live. And for those that like to follow the crazy competition that goes on by companies with lots of cash there is already speculation that Google might try to outbid Microsoft. It will be more than interesting to see how this plays out.

Microsoft Windows Vista is celebrating birthday number one today on the anniversary of the public release. You can certainly say it has been a controversial first year. Vista has taken its knocks from many quarters, certainly from the mobile sector, but it has also continued to grow in terms of sales. If you follow the industry news, it looks like there is a growing trend that is moving beyond the “knocks” into the “Vista isn’t all that bad” column. That said, there is still a large chorus that wants to see Vista branded as a Windows ME type failure and move on. Some even say Vista is the best promotion that Windows XP has ever had. Recent confusing stories of a potential 2009 release of Windows 7 certainly doesn’t help. The final release of SP1 is supposedly just around the corner and there is a lot of emphasis and interest to see how well that changes the matter and the perceptions.

From a Tablet PC perspective, Vista certainly offered some great advances, (check out our GBM InkShows on Tablet PC features in Vista) and in many ways ushered Touch into the picture. Unfortunately, from my perspective, the big hope of making Tablet PC functionality available across the board by rolling it all into Vista (the bits are there, all you need is the hardware) didn’t yield the hoped for increase in interest and development of new Tablet PCs from OEMs. That is a marketing failure as much as it is anything else, as you need to look really closely in any of the hype about Vista to know that improved Tablet PC functionality is a feature.

If it seems that Vista has been around for longer than a year that is because it has. In the roll up to the final release to consumers, the various release candidates, the release to business customers, and of course the delays, were all covered breathlessly, and it seems, endlessly (certainly here on the pages of GBM), and rightly so.

TEO developer Josh Einstein has waged a one man campaign in the GBM Forums and comments throughout the year defending the OS from some of the charges leveled against it, and done so admirably, especially as it relates to issues that might be caused by drivers and hardware from Microsoft hardware and software partners. He’s raised some excellent points along the way and in our small world here, put the focus where it needs to be in some cases. In the final analysis though, the fact that Josh has felt the need to do so, demonstrates that Microsoft missed the boat by not being proactive in discussing and addressing some of the issues that caused concern. But then that seem to be the “accepted way of things” when it comes to talking about issues with operating systems and new releases. I think the large turnover inside Microsoft, shortly after Vista’s release, also had some impact on this as well, and if you ask me the timing of those moves was not only questionable, but in some cases damaging.

So, it has been a bumpy ride in Vista’s first year. In my one man’s opinion, there is still a lot to learn, still room for improvement, and there are still some questions unanswered. While Vista and some of its attendant issues have given me some headaches, I’ve used it almost exclusively since the fall of 2006 and continue to do so. For better or worse. Mostly better.

What are your thoughts?

Dennis O'Reilly has penned (perhaps literally!) a great article on using digital ink in Microsoft Office 2007 apps. Although he's specifically talking about Office 2007, many of his tips and hints actually work just fine in earlier versions of Microsoft Office. I know I've sent many handwritten emails using Outlook 2003, for instance.

In my opinion, the great thing about the article was that it was NOT on a Tablet PC site. This was a general CNet blog that is pretty widely read, and therefore many people who don't know about inking may have just gotten their first exposure. And that's a Good Thing.

Oh, and if you haven't tried it already, Microsoft is offering free trials of Office 2007. It really is an improvement for inking.

Ok, there’s certainly nothing certain about this, but the wires are buzzing, (or is that the Intertubes are tubing?) with word that the next version of Windows operating system, Windows 7 is being targeted for a late 2009 release. The usual “several industry sources” are doing the talking, which means have your grain of salt shaker handy.

Via Engadget

We got some great private time with the Surface, including some demos only seen by a few people.

This is some totally cool stuff.

Click To Play

Okay, so I'm just a touch late with my predictions, but I'll still throw in my opinions!

• Standard Windows based Tablet PCs will start evolving. Microsoft has been going after the "pen/touch as a feature" kind of thinking for a while, and I think as Vista inevitably gets adopted, that the feature mind set will start to prevail. I have really mixed opinions about whether this is a good thing, because I also predict that it will lead to...
• Less diversity in Tablet PC form factors. We're seeing this already with the number of relatively ho-hum swivel convertibles that are coming out with few slates and no new hybrids. In 2008, more systems will just include a touch screen because they can, and because more people will want them due to the number of iPhone users out there. However, few people will use the ineffective touch screens well, which will cause
• Frustration with Windows Tablet PC features. And I think this is a Really Good Thing. Because if people get upset, then Microsoft will do something about it. Right now, we're merely a vocal minority. As more systems with touchscreens get in the hands of real users, frustration with the shortcomings will be inevitable and the outcry will finally reach Microsoft.
• More PowerToys for Tablet PCs. Instead of addressing the requirements in the OS, Microsoft will release at least 6 new Power Toys in 2008 geared directly for ink and touch input. These will attempt to appease the masses while Microsoft works on Vista Service Pack 2.
• Intel's vision of Mobile Internet Devices will release and people will get really excited and really disappointed. There will be a big bang at CES with lots of buzz. Once the systems start getting into reviewers hands, a couple models will get good reviews, but all will complain that the devices
• Don't run Windows
• Aren't fast enough
• Aren't compatible enough
• Don't take the place of my desktop system
• That said however, small, inexpensive ASUS Eee PC type systems will start getting really really popular. However, these aren't MIDs (according to Intel) and whether they're UMPCs or not is an open question. People will start to understand that "Anytime/Anywhere" connectivity can be a really good thing.
• HTC will FINALLY launch the Shift, and by the time it is released, it will be obsolete.
• Wacom will finally get some serious competition in the Tablet PC space, from newcomer N-Trig. N-Trig's digitizer will get some great reviews and people will start having a good option beyond Wacom. It will get adopted as an option for some of the upcoming Tablet PC releases.
• Multi touch will not happen in 2008, at least commercially. There will be talk and there will be lots of demos, but no real uses until the software catches up in 2009.
• WiMAX will lose even more momentum. I want WiMAX to succeed, but I just don't see it happening, at least not for yet another year. I actually really hope I'm wrong on this one.
• Wireless USB devices will start popping up here and there and people will start to get interested, but interoperability fears and high prices will stall the adoption.

I'm going to dub 2008 as the Year of the Tweener. I think the big stories in 2008 will all circle around those "in-between" devices - bigger than a cell phone, smaller than a Tablet PC, trying to be multi-functional and sometimes succeeding. The release of the MIDs will whet people's appetites for Internet access, and as these converged devices start to get in the hands of consumers, frustration will set in as the devices fail to live up to our hopes. And the computer manufacturers will listen to us all...

Mary Jo Foley is reporting that Microsoft is prepping a $300 million consumer product blitz in early 2008. (I smell a CES roll out.) She’s speculating that this will include Microsoft’s Zune’s, XBox, and Windows Home Server. She’s also curiously suggesting that Microsoft Surface might be in the mix, although I’m not so sure that will be a part of the consumer push this early. (Apparently Gates is going to demo Surface technology as a part of the CES keynote.)

Here’s my question though, and the eventual answer will be quite telling. Will Microsoft include Tablet PCs and UMPCs in the big consumer push that is about to happen? I’m optimistic that we will at least see UMPCs as a part of the campaign, but if we don’t… like I said, that will be more than telling.

Thoughts?

Looks like the editors at PCWorld decided to compile a list of the biggest disappointments in tech this year. It also looks like they picked the 15 biggest stories and just found some negative things to say about them. From social networks to Vista (which got #1) and Apple’s Leopard (#8) to the iPhone (#5), it all gets smacked along the way. From the way I read it, (with the exception of taking a knock at the Telcos) if you made this list, it looks like you made an impact in 2007. Go figure.

Here’s the link.

In the midst of service pack releases, Microsoft has also rolled out an update that seems to address the notorious Sleep of Death and Vista Insomnia issues we’ve been reporting about of late. Here’s the link to the info and download, and here's what is addressed. This update is called a "preview release" so apply it with that in mind.

This article contains an update that resolves issues that may affect some Windows Vista-based computers. These issues have been reported by customers who use the Error Reporting service or Microsoft Customer Support Services.
This update improves performance, responsiveness, and reliability of Windows Vista in various scenarios. This update resolves the following issues on a Windows Vista-based computer:

• You receive a "Stop 0x000000A0" error when you try to switch the computer to the hibernate state.
• You receive a "Stop 0x0000009f" error when you switch the computer to the hibernate state or to the standby state. Or, you receive this Stop error when you resume the computer from the hibernate state or from the standby state. This problem occurs on a computer that has a wireless network connection.
• The disk does not spin down after a specified time of inactivity.

Additionally, this update can help improve performance when you perform operations that are related to large disk I/O. After you apply this update, you may notice up to a 15 percent performance improvement in some copying operations and when moving some large files.

So far I've seen nothing that suggests this is included  or not included in Vista SP1, although the preview release status sounds like it is not. I have not installed this yet, but hope to do so today. More info on the Windows Vista Blog.

It is raining service packs it seems. Microsoft has released The Microsoft Office suite Service Pack 1 for public download. (note that silly small ‘s’ in the title.) Unlike Vista SP1, this is not a release candidate and is the official service pack release. This service pack is really more about fixes than it is about features. A description of what’s contained in the service pack is located here, although you’ll need to hit a bunch of Knowledge Base links to read more about it. That said, Daniel Escapa, has a rundown on what’s available for OneNote 2007 on his blog.

I’ve installed the service pack on my Tablet PC and so far have seen no issues with any of the Office programs I’m running. The install was relatively painless as well.

Here’s the download link.

As we blogged last week, The Vista SP1 Release Candidate is now available for public download. If you’re looking to see what fixes are contained in the Service Pack, check out this post by Long Zheng of istartedsomething. Keep in mind, this isn’t the final release, it is a release candidate, so if you’re going to go all install happy, take the necessary pre-cautions. (Ask Matt about that if you’re interested.

Here’s the download link and more info on the release. Note that the SP1 RC is also listed as being available on Windows Update. So, if you want to hold off you might want to check your Windows Update settings and adjust accordingly.

Craig Pringle gets the credit for coining the phrases Sleep of Death and Vista Insomnia to identify issues with sleep and returning from sleep in Microsoft Vista. As he states, both are real issues mobile users have to deal with. The Vista Insomnia issue is more than annonying. You put a device to sleep and at some point (invariably in my case when it is tucked in my bag) the device decides to wake up on its own.

Craig points to an fix in SP1 that might address the Insomnia issue from the long list of What’s Under The Hood, that Long Zheng recently published.

• Addresses the problem of the Video chipset (VSync interrupt) not allowing the system to stay asleep.

He’s going to give it a try and report back. I’ll have my eyes peeled for what he discovers.

Long Zheng of istartedsomething has posted an extensive list of what issues Vista SP1 addresses. As Microsoft prepares to roll out the Release Candidate of this to users soon, it might be worth taking a look. Some highlights that might be of interest to mobile users:

• Improves the effectiveness of a Windows ReadyBoost™ device in reducing the time to resume from standby and hibernate by increasing the amount of data stored in the ReadyBoost device that can be used during a resume cycle.
• Includes improvements to Windows Superfetch™ that help to further improve resume times, in many environments.
• Improves the time to resume from standby for a certain class of USB Hubs by approximately 18%.
• SP1 reduces the number of UAC (User Account Control) prompts from 4 to 1 when creating or renaming a folder at a protected location.
• SP1 addresses issues many of the most common causes of crashes and hangs in Windows Vista, as reported by Windows Error Reporting. These include issues relating to Windows Calendar, Windows Media Player, and a number of drivers included with Windows Vista.
• Improves power consumption when the display is not changing by allowing the processor to remain in its sleep state which consumes less energy.

It is a long list and the entire changelog is on view here. While the Release Candidate is scheduled to be released next week, please take caution and back up before installing it. I know of several users who have tried this and had difficulty (including Matt Faulkner.) By the same token I know of several who have seen no issues with the install, so your mileage may indeed vary.

If you’re one of those dying to get your hands on Vista SP1 there is info out on when the Release Candidate will be released. Nick White blogs that for testers using Microsoft Connect it is available today. If you have a MSDN or TechNet subscription it will be available tomorrow. And for the general public the Release Candidate will be availalbe next week via the Microsoft Download Center.

The final verson of Vista SP1 is still scheduled for a release in the first quarter of 2008. A Release Candidate is usually the last phase in testing before a product is shipped. For info on this, check out The Windows Vista Blog.

Microsoft might be doing everything in its power to keep its killer app OneNote 2007 a secret, (it earned a 2007 Ink Blot Award for Best Tablet PC Software That Is Such A Secret That Microsoft Doesn't Want To Tell Anyone: Microsoft OneNote 2007 ) but Daniel Escapa is doing his best to get the word out about this great software application. Once a month he runs a round up of all the blog and web posts he can find on OneNote 2007. As you can see from the list folks are indeed talking about OneNote 2007, which is a good thing. There is some great reading on that list about OneNote 2007 and how people are using it. I just think it is a shame that Microsoft is relying on that kind of PR to get the word out.

Keep beating the drum Dan. OneNote 2007 is indeed a killer app and the best thing to come out of Microsoft for some time.

We blogged about the availability of the upgrade for Office Mobile last week. The upgrade is only available if you already own a copy of the earlier version of Office Mobile on your device. Now, if you’re looking to add Office Mobile 6 for your handheld and you don’t have a previous version you can purchase it outright. Of course that will set you back $49.95, which I think is a tad expensive. Office Mobile 6 allows you to read the new Office 2007 file format natively on your mobile device, so that’s where the value is if you need that compatibilty.

I downloaded and installed the upgrade on my Sprint (HTC) Mogul over the weekend and it works as advertised with no issues I can find so far. Here’s the link to the product page.