Microsoft CEO Steve Ballmer acknowledges he has been "hammered" by investors who argue that Microsoft should focus on its core desktop and server software business and forget businesses like
digital music players and video games. But he maintains that Web services and consumer devices are key to its future.
The company aims to make software that integrates the best
features of desktop software, higher-end corporate software, Web services and devices. It needs to be in all of those areas to keep up with the pace of innovation, Ballmer says.
Microsoft can also drive growth through its bread-and-butter software products, like the Windows operating system and Office productivity software. New versions of Office and Windows are yielding higher-than-expected renewals of multiyear agreements with large organizations.
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