Solution providers said they expect Microsoft to launch extremely aggressive upgrade programs in the channel to move recalcitrant users of old Windows and Office along.
Microsoft has been "better about surfacing new features of Office 12…the challenge in the Office group is to overcome the inertia in the market, the feeling that the current product is good enough," said Rick Sherlund, partner with Goldman Sachs, New York.
The Client group, representing Windows client software, generated sales of $3.5 billion up from $3.2 billion.
While tiny in comparison, the closely watched Microsoft Business Solutions group, which fields ERP/Accounting applications, posted revenue of $242 million up from $207 million for the last-year quarter. The unit posted a profit of $10 million for the period compared to a $17 million loss for the comparable period last years.
The company singled out SQL Server successes for attention, claiming 20 percent growth in that business over last year. The overall server and tools business grew 14 percent, Microsoft said.
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