Microsoft: Where are They Headed?

Microsoft is a difficult situation for me to evaluate. I think the company still has a lot of growth ahead in some areas. But, that depends on where management wants to take it.

There are three core businesses that are already well developed: Windows, Office, and Servers.

The moat in the first two are wide. The Windows moat is huge.

The business model in operating systems is great. You keep upgrading every few years; the hardware needn’t progress for you to find things to tweak and get people to buy the next step up. It’s insanely profitable.

I think the new launch (Vista) will be bigger than people expect (eventually) in how it allows for cross selling other Microsoft products (but we’ll see about that). I expect the press to be very negative at least until well after the launch, because there will always be some bugs and delays.

Games

Eventually, video games will be a big business for Microsoft. I hate the economics of the console business, but love the economics of the publishing (and development) side of things.

I’m sorry to see that Microsoft didn’t use its cash pile to buy up an established business here (publishers were cheap in the market a few years ago; an all cash deal would have worked well. Now, everyone thinks video games will be the next big thing).

The console wars are going well for Microsoft. The two keys to establishing a dominant console are launching first and getting good games on your platform. We’ll see how Sony (SNE) does this round, but I expect them to be the big loser.

Nintendo may surprise here. I think the Xbox 360 and Nintendo’s new console (Wii) will do very well. It’ll be interesting to see the breakdown of the consoles in both the domestic and foreign markets. I think Sony may still be strong overseas, but could be in a much poorer position at the end of this round than they were with the PS2.

Search

Long-term I am optimistic about search. I think Google’s position is much weaker than most people think. I don’t think Microsoft will be the only one to benefit here.

Search is a very natural cross sell with Windows. That’s the direction everything seems to be headed in (combining online and desktop search). For future growth in terms of market share I think Microsoft is in a better position than either Yahoo (YHOO) or Google (GOOG).

I also think we might see a couple other (largely unknown) search engines gain some share.

I think Google’s strength is its brand. Its dominance helps with advertisers more than users. I don’t think it has a lock on users. Also, I think Google has been poorly positioned for doing much of anything outside of keyword search.

I expect to see a lot more in the way of intelligent, social search inspired stuff. Years from now, much of search will have to be helping you find what you didn’t know you wanted to find.

Google is dominant in a different business: helping you find what you know you want to find (but don’t know the name / location). The two types of search are very different. Both will be important, but the growth in other forms of search will be coming off a smaller base and will likely integrate with keyword search. Google has the most to lose here.

Other Devices

Microsoft wants to perform well on mobile devices and on your TV. Compared to competitors it is very strong in these respects.

The strategy seems to be the one I would favor – to control the point of initial contact wherever software is used and then to only venture into the actual application or content side of the business where it is highly profitable to do so. In video games it will be highly profitable. In other areas it is less likely to be very profitable.

I expect to see more generic, web-based applications. These will be less profitable for everyone. Office should hold up well, but not as well as Windows. Basically, Microsoft needs to take what it has in PCs and import that to TVs, Handheld Devices, Consoles, and the Web.

That should be the strategy. I think that is the strategy. These aren’t unrelated businesses that need to be broken up to unlock creativity (as some have suggested). Rather, the profit potential for each is greatly enhanced by being part of Microsoft. If you take these pieces apart they are worth very little. There would only be the three businesses I started off talking about and the console / games business.

Internationally, there is going to be natural growth for Microsoft’s dominant businesses. It won’t be a tremendous growth rate, but it will be strong and will require virtually no additional investment to secure.

Obsolescence Issues

Overall, I like the future for software a lot more than hardware, because the marginal gains in the quality of hardware will slow greatly in the years ahead.

The question isn’t what can be done mathematically in terms of increasing specs; it’s what that translates to for the user. We are reaching a point where the individual user will not directly see the benefits of increased hardware performance as clearly as he did in the past.

Much of the research that goes in to this area will only serve to bring down prices and benefit memory intensive businesses – it will not provide as much of a “wow” factor for the user anymore.

This is especially true in games. The situation in desktop applications is already such that improving the software design is where most gains will come from.

Computing power is simply not a scarce resource for most individuals sitting at home or in a cubicle. Advances will benefit some users a lot and will trickle down to the end user (often via the web) through fast responses and cheap services. But, that’s a barely noticeable change.

You’ll see something here akin to the kind of thing you see in the brokerage business. It won’t be obvious, because price competition will never be as great in software.

Generally, you’ll just see the prices for doing anything electronically come down. That’s very different from what we’ve seen over the last few decades, where you also had advancements that attracted new users, because they allowed developers to do something differently, not just more cheaply.

This is a very long-term trend I’m worried about. It could weigh heavily on a business like Dell (DELL), because PCs are actually quite durable; once the rate of obsolescence slows, sales will have to slow as the cycle lengthens.

Management

I think Microsoft’s management is absolutely the best in the business. In fact, I think it’s one of the best in any business.

It would be hard for me to find more than a handful of people I’d rather have managing a business I was part owner of. I also think the current arrangement is a good one.

There is enough of a line between current operations and future investments in the Chairman / CEO split that investors will probably get the greatest benefit from the brilliance of the Chairman this way.

Everyone underestimates Bill Gates. It’s easy, because his great triumph came some time ago now. But, he’s interested in building something lasting. I trust him more than anyone in tech without a question. He always impresses me whether he’s talking about his own industry or some other topic. He has exactly the right kind of mind for someone running a business where the long-run is such a concern.

Qualitatively, I think Microsoft scores close to perfectly. I could cite the profitability stats, but I won’t, because you know they’re better than almost any other business on the planet – and that’s with a huge siphoning off of resources to investments in the future that aren’t required to maintain the cash cow, wide-moat Windows franchise.

Valuation

Valuation is a bit more troubling. Microsoft is not at the point on an EV/EBIT basis where I’d be buying the stock if there was a risk of no extraordinarily profitable growth in the future. In other words, at the current price, it clearly makes for a bad bond.

The key is earnings growth. I think you have to believe MSFT will have a real future in search, games, and non-PC devices that will fuel future, highly profitable growth.

I think that future is there. As far as a truly large cap stock (say $10 billion or more) it’s about as attractive as anything on the planet right now – and certainly it’s the most attractive stock of any very large U.S. business. Even though Intel (INTC) and Dell are cheap looking, I don’t like them nearly as much. Dell is an interesting situation, but I don’t understand the business well enough.

I have a better idea of where MSFT is headed – and I like it.

Conclusion

I don’t own shares of MSFT. I won’t be buying any either. I don’t normally own such large stocks. I prefer much smaller businesses, because the mispricings tend to get more out of whack. You aren’t going to see MSFT trade at an EV/EBIT of 7.5 or something like that, but you do sometimes get those chances in small (high quality) businesses.

There are a lot of chances to find wild mispricings without much of the future being a concern. Those are the situations I prefer to invest in, because businesses like MSFT have an awfully large anchor with the amount of capital they’ve got – plus, they tend to be less likely to be wildly mispriced.

However, if I had to own one business with a market cap of more than $10 billion and hold it for a lifetime I would buy Microsoft here without hesitation.

Microsoft Technet 2005 Single Server Renewal

Product Description
Microsoft TechNet is a central information and community resource designed for IT professionals. The TechNet program includes technical briefings, special offers, Web site, and electronic newsletter, in addition to the CD subscription. Designed to meet the technical information needs of anyone who plans, evaluates, deploys, maintains, or supports Microsoft business products, the TechNet program will keep you informed about Microsoft strategies and industry trends. It will also provide you with the kind of “how-to” information you need to be successful. TechNet serves as a forum to share information, ideas, and opinions with your peers in the IT community – and with Microsoft. If youre an IT professional working in technical support, network or systems administration, or technology architecture, TechNet was created for you.

Buy from Amazon –> Microsoft Technet 2005 Single Server Renewal

Microsoft Technet 2005 Single Server

Product Description
Microsoft TechNet is a central information and community resource designed for IT professionals. The TechNet program includes technical briefings, special offers, Web site, and electronic newsletter, in addition to the CD subscription. Designed to meet the technical information needs of anyone who plans, evaluates, deploys, maintains, or supports Microsoft business products, the TechNet program will keep you informed about Microsoft strategies and industry trends. It will also provide you with the kind of “how-to” information you need to be successful. TechNet serves as a forum to share information, ideas, and opinions with your peers in the IT community – and with Microsoft. If youre an IT professional working in technical support, network or systems administration, or technology architecture, TechNet was created for you.

Buy from Amazon –> Microsoft Technet 2005 Single Server

Microsoft Visual Studio 2008 Professional with MSDN Premium Renewal

• Build applications for Windows, the Web, the Microsoft Office system, the .NET Framework, SQL Server, and Windows Mobile with integrated drag-and-drop designers; be part of a community of millions of developers
• Visual Studio integrates Visual Basic, Visual C#, and Visual C++ to support a wide variety of development styles; Editor features simplify the cycle of designing, developing, and debugging an application
• Deploy client applications easily with ClickOnce, which enables developers and IT Pros to deploy an application and its prerequisites and then ensure that the application remains up-to-date
• Build applications which target the .NET Framework, shortening development time by reducing the need for infrastructure code and helping to enhance application security; Use ASP.NET to speed the creation of interactive Web applications and Web services
• MSDN Subscription includes a wide variety of software to help developers to design, develop, test, and demonstrate applications or solutions–active subscribers have access to current, past, and pre-release future versions of many Microsoft products

Product Description
Microsoft Visual Studio Pro w/MSDN Prem 2008 Win32 English Not to Latam DVD DVD RenewalAmazon.com
Visual Studio 2008 Professional Edition is a comprehensive set of tools that accelerates the process of turning the developer’s vision into reality. Visual Studio 2008 Professional Edition was engineered to support development projects that target the Web (including ASP.NET AJAX), Windows Vista, Windows Server 2008, The 2007 Microsoft Office system, SQL Server 2008, and Windows Mobile devices. The number of platforms that developers must target to meet business needs is increasing rapidly. Visual Studio 2008 Professional Edition provides the integrated toolset for addressing all of these needs by providing a superset of the functionality available in Visual Studio 2008 Standard Edition. This edition also includes an MSDN Premium Subscription for a wide variety of software to help developers to design, develop, test, and demonstrate applications or solutions.

The Microsoft Visual Studio development system is a suite of development tools designed to aid software developers–whether they are novices or seasoned professionals–face complex challenges and create innovative solutions.

TodayÕs developers face the challenge of targeting a broad range of platforms and crafting applications that quickly deliver value to the business. Integrated designers and language features in Visual Studio allow developers to build the connected applications demanded by todayÕs businesses while taking advantage of the .NET Framework 3.5 to reduce development time.

Design high-performance applications
Connect to the data you need, regardless of its location, and build data driven applications using Language Integrated Query (LINQ).

Build great client applications
Develop compelling solutions that leverage the user experience and capabilities of the 2007 Microsoft Office system and Windows Vista.

Build powerful Web applications
Build rich, interactive applications using the ASP.NET AJAX interactive Web interfaces.

What’s New in 2008

• Build applications that utilize the latest Web technologies with improved support for AJAX and Web Controls and the Microsoft AJAX Library
• Create Web applications more easily with an improved design surface and standards support
• Utilize data from any data source more smoothly with LINQ, a set of language extensions to Visual Basic and Visual C#
• Manage and build applications that target multiple versions of the .NET Framework. For the first time, you can use one tool to work on applications that run on .NET Framework versions 2.0, 3.0, and 3.5
• Ensure application correctness more easily with integrated unit testing in Visual Studio 2008 Professional Edition
• Discover the full power of the .NET Framework 3.5 with integrated tools which simplify building great user experiences and connected systems
• Build stunning user experiences with integrated designers for Windows Presentation Foundation. Experiences built with WPF can interoperate seamlessly with Windows Forms
• Create connected applications using new visual designers for Windows Communications Foundation and Windows Workflow Foundation
• Use Visual StudioÕs professional development environment to build Microsoft Office-based solutions that are reliable, scalable, and easy to maintain (available in Visual Studio 2008 Professional Edition only)
• Enhance collaboration between developers and designers to create more compelling user experiences

Feature Highlights

• Build applications for Windows, the Web, the Microsoft Office system, the .NET Framework, SQL Server, and Windows Mobile with integrated drag-and-drop designers
• Visual Studio integrates Visual Basic, Visual C#, and Visual C++ to support a wide variety of development styles
• Editor features such as Edit and Continue and Microsoft IntelliSense simplify the cycle of designing, developing, and debugging an application
• Deploy client applications easily with ClickOnce, which enables developers and IT Pros to deploy an application and its prerequisites and then ensure that the application remains up-to-date
• Build applications which target the .NET Framework, shortening development time by reducing the need for infrastructure code and helping to enhance application security
• Use ASP.NET to speed the creation of interactive, highly appealing Web applications and Web services. Master Pages allow developers to easily manage a consistent site layout in one place
• A community of millions of developers ensures that developers can find partners and other community members addressing the same challenges

MSDN Subscriptions include a wide variety of software to help developers to design, develop, test, and demonstrate applications or solutions. Active subscribers have access to current, past, and pre-release future versions of virtually every Microsoft product or technology a development team could need. MSDN Professional Subscriptions can be purchased with Visual Studio 2008 Professional Edition. MSDN Premium Subscriptions can be purchased with either Visual Studio Professional Edition or with Visual Studio Team System products.

Visual Studio 2008 Professional with MSDN Premium Includes: Development Tools Visual Studio 2008 Professional Visual Studio 2005 Professional Visual Studio 2005 Tools for Microsoft Office System Visual SourceSafe 2005 Previous versions of Visual Studio Visual Studio: .NET, Visual Basic, Visual C#, Visual C++, Visual J#, Visual FoxPro Expression Web Expression Blend Servers SQL Server Application Platform Servers: BizTalk Server, Commerce Server, Host Integration Server, Connected Services Framework, Customer Care Framework Business Productivity Servers: Content Management Server, Exchange Server, Office Live Communications Server, Office Forms Server, Office Groove Server, Office PerformancePoint Server, Speech Server, Sharepoint Server, Windows Sharepoint Services IT Operations Servers: Identity Integration Server, Microsoft System Center, Microsoft Operations Manager, Microsoft System Center Capacity Planner, Microsoft System Center Data Protection Manager, Systems Management Server, ISA Server Operating Systems Windows Vista: Ultimate/Enterprise/Business/Home Premium/Home Basic Windows XP: Professional/Home/Media Center Edition/Tablet PC Edition Windows Server 2008 (BETA) Windows Server 2003 R2 Compute Cluster Windows SharePoint Services 2007 Microsoft Office System Office Ultimate/Enterprise/Professional Plus/Professional 2007 [2] Office Word, Office Excel, Office PowerPoint, Office Outlook & Business Contact Manager, Office Access [2] Office Publisher, Office InfoPath, Office OneNote¨, Office Communicator, Office Groove, Office SharePoint Designer, Office Visio, Office Project Standard [2] Office Accounting, Office Business Scorecard Manager, MapPoint, Office FrontPage Office Project Professional Office Project Server, Office Project Portfolio Server Microsoft Dynamics Dynamics AX, GP, NAV, SL, Microsoft Forecaster & Microsoft FRx Dynamics CRM, Point of Sale, Microsoft Small Business Accounting & Financials Other Tools, SDKs & DDKs Access Developer Extensions Virtual PC, Virtual Server .NET Framework, .NET Compact Framework, .NET Micro Framework Windows SDK, Platform SDK, DirectX SDK Microsoft Baseline Security Analyzer 2.0, Application Compatibility Tool Kit 5.0 Windows Automated Installation Kit (WAIK), Windows Installer Windows Driver Kit (WDK), Windows Hardware Compatibility Test Visual Studio 2005 Extensions for .NET Framework 3.0 Additional Benefits MSDN Library 4 Technical support incidents Managed Newsgroup support Online Concierge

[1] Visual Studio Team Foundation Server Workgroup Edition is limited to five designated users. One Client Access License is provided for use of the full version of Team Foundation Server. [2] One copy of the indicated applications may be used on one device for any purpose.

Write Code Faster
At the core of all software solutions is the code that developers write. Visual Studio 2008 helps developers write code faster through a wealth of productivity-enhancing features, such as IntelliSense technology, auto-completion, auto-colorization, method lookup, syntax and type checking, code refactoring, code-snippet management, and many more.

Avoid Memorizing Syntax
Introduced by Microsoft more than a decade ago, IntelliSense technology in Visual Studio is a form of automated completion that displays a list of the members that are available for that class or object after a developer types a class or object name and a period. It speeds coding by reducing the number of keystrokes required and the need to reference external documentation. IntelliSense in Visual Studio 2008 adds support for JavaScript to provide the same benefits to Web developers, including those who are using Asynchronous JavaScript and XML (AJAX) programming techniques.

Write Less Code
Visual Studio includes prebuilt building blocks for native and managed code, such as Active Type Library, Microsoft Foundation Class Library (MFC), and the Microsoft .NET Framework. By taking advantage of these, developers can reduce the amount of low-level code they must write and instead focus on solving business problems. Visual Studio 2008 supports the .NET Framework version 3.5, which includes enhancements to the base class libraries, Windows Presentation Foundation, Windows Communication Foundation, Windows Workflow Foundation, and Windows CardSpaceÑand delivers improved interoperability between native and managed code.

Handle Data More Productively
Programming against data sources has traditionally meant having to learn a new data access technology or paradigm for each data source. Language-Integrated Query (LINQ), a set of extensions to the C# and Visual Basic languages and the .NET Framework 3.5, enables developers to employ a consistent approach and write less code when querying and transforming object collections, ADO.NET, XML data, and relational data from Microsoft SQL Server-based databases. Developers using LINQ benefit from design-time assistance in Visual Studio 2008Ñsuch as statement completion, smart compile auto-correction, and IntelliSense technologyÑenabling them to invest less time in learning how to access the data through syntax for languages like T-SQL or XPATH and instead focus on what to do with the data.

Use Integrated Tools
Visual Studio 2008 also enhances developer productivity by providing an integrated set of tools for activities other than writing code. The Visual Studio project system makes all aspects of a project easy to manage, from writing the first line of code through packaging finished software for deployment. During development, visual designers, server and data explorers, debuggers, automated build tools, background compilation, integration with source code control, an integrated Help system, and a range of third-party extensions for Visual Studio all come together to help developers remain focused on business needs and deliver faster.

Program in Multiple Languages
Visual Studio supports several of the world’s most popular programming languages, including Visual Basic, Visual C#, Visual C++, and JavaScript, making it useful to a broad range of developers and for a broad range of applications. Solutions for Visual Studio from more than 200 other companies add support for additional languages and a multitude of other capabilities, enabling developers to continue using the same familiar tools as they learn new languages, grow their skills, address unique business needs, and switch between projects

Manage Project Files and Jump-Start New Projects
The Visual Studio 2008 project system enhances productivity by tying together the tools and files for a project. When developers select a prebuilt project template, the project system customizes the Visual Studio UI to support the task at hand. (For example, if a developer chooses to create an application for Windows, the project offers a Windows form item.) The Visual Studio project system is compatible with Microsoft Expression design software, enabling developers to collaborate with UI and Web designers.

Target Multiple Versions of the .NET Framework
With previous versions of Visual Studio, developers could build applications that ran on only one version of the .NET Framework. Visual Studio 2008 provides the ability to target versions 2.0, 3.0, and 3.5 of the .NET Framework from within a single environment, with the editor, designers, and debugger intelligently adapting to the specified version. With this capability, developers can upgrade to Visual Studio 2008 and begin taking advantage of the new benefits it provides without having to upgrade their projects or have multiple versions of Visual Studio installed.

Build Higher-Quality Applications
With the trend toward test-driven development and the importance of quality and security in distributed applications, unit testing is now an integral part of many developers’ tasks. Visual Studio 2008 Professional Edition includes integrated support for unit testing, which was previously available only in Visual Studio Team System products.

Build Software for Windows
Developers can use Visual Studio 2008 to program against core Windows APIs, Microsoft Foundation Classes, the .NET Framework, or any of several software development kits (SDKs), enabling them to use a single tool set to build system services, device drivers, utilities, games, desktop software, line-of-business applications, and more. Regardless of the type of software, Visual Studio helps developers deliver rich user experiences, connect applications and business processes, and accelerate solution delivery.

Deliver Rich User Experiences
Visual designers in Visual Studio 2008 enable developers to create rich, engaging applications based on Windows Presentation Foundation, the graphical subsystem in the .NET Framework 3.5 for taking advantage of today’s modern graphics hardware. Developers also can build applications that take advantage of the more than 8,000 new native APIs in Windows Vista, and can take advantage of enhancements in MFC and Visual C++ to easily move applications to the new Windows Vista look and feel.

Build Connected Solutions and Streamline Business Processes
Developers can use the graphical designer and debugger for Windows Communication Foundation in Visual Studio 2008 to easily connect systems or applications, programming to a common API regardless of the underlying transports and protocols used. Similarly, tools for Windows Workflow Foundation enable developers to model real-world business processes in software by providing the means to easily visualize, create, edit, and debug both human and machine-based workflows.

Collaborate with UI Designers
Support for Extensible Application Markup Language (XAML) in Visual Studio 2008 enables developers to collaborate and share design assets with designers who use Microsoft Expression Blend design software. The ability to transfer user interface design elements between the developer and the designer means that edits to either the code or UI can be made simultaneously without affecting layout or code adversely. The developer and designer work on their respective tasks without any dependency on each other, and their efforts are then integrated by simply sharing source files.

Build Specialized Software
Visual Studio 2008 supports more than just the development of ÒmainstreamÓ applications for Windows. When developing Windows drivers to support new hardware or targeting platforms such as the Xbox 360 video game and entertainment system, hardware vendors, software vendors, and others can program directly against the Win32 APIs and take advantage of Microsoft-provided device driver and game development kits to ensure compatibility and accelerate solution delivery.

Build Software for the Web
Most companies that employ Internet technology for public Web sites and/or internal business applications are looking for ways to accelerate solution delivery, enhance the end-user experience, and improve integration. Visual Studio 2008 and ASP.NET 3.5 (part of the .NET Framework 3.5) provide a versatile tool set for building stunning Web sites or for connecting distributed systems using Web services.

Build Rich, Responsive Web Sites
Support for AJAX in Visual Studio 2008 enables developers to deliver richer, more responsive Web applicationsÑand a more interactive user experienceÑby eliminating the need to reload an entire Web page when a user makes a change. Developers using AJAX can take advantage of IntelliSense technology to discover variables, objects, and their methods, and can debug JavaScript code by setting breakpoints inside Visual StudioÑa capability that works with the most popular Web browsers. Developers also benefit from improved designers and editors.

Web developers will also benefit from enhancements in ASP.NET 3.5. The new ListView control provides unprecedented flexibility in how data is displayed (with complete control over the HTML markup generated), and the new DataPager control handles the work of allowing users to page through large numbers of records. The LinqDataSource control makes it easy to create data-driven Web sites by enabling developers to use LINQ to retrieve, filter, order, and group data that can then be declaratively bound to data visualization controls.

Connect Systems and Applications Using Web Services
Developers can use Windows Communication Foundation in the .NET Framework 3.5 to build Web services that are exposed using any number of Internet-standard protocols, such as SOAP, RSS, JSON, POX, and more. Whether developers are building an AJAX application that uses JSON, syndicating data via RSS, or building a standard SOAP Web service, Windows Communication Foundation makes it easy to create service endpoints. Plus, Windows Communication Foundation now supports building Web services in partial-trust situations like a typical shared-hosting environment.

Collaborate with Web Designers
Developers can easily collaborate with designers who use Microsoft Expression Web through the use of cascading style sheets and shared project files. Designers can use Expression Web to design a UI and then turn it over to developers with confidence that the UI design and subsequently developed business logic code will both remain intact.

Build Software for Microsoft Office System
The user interfaces of line-of-business applications can be difficult to learn, respond sluggishly to user input, and require people to be connected to the corporate intranet. Visual Studio 2008 Professional Edition provides a powerful tool set for building Office Business Applications (OBAs), which extend the data in line-of-business systems to end users through familiar Microsoft Office programs. Through such an approach, developers can integrate the front office and back office, making the information in ERP, CRM, and other enterprise systems directly accessible from within everyday business processes.

Develop Applications for Microsoft Office Using Existing Skills
Visual Studio Tools for Office is a fully integrated component of Visual Studio 2008 Professional Edition, giving developers everything they need to target the more than 500 million users of Microsoft Office using the same managed-code development skills that they use to write applications for Windows or ASP.NET applications. Applications built on Microsoft Office are first-class projects in Visual Studio, which includes project templates, designers, and debugging tools to help developers rapidly build solutions based on current and earlier versions of Microsoft Office desktop products, as well as Microsoft Office SharePoint Server 2007.

Take Advantage of the UI in the 2007 Office Release
With Visual Studio 2008, developers can take advantage of familiar Microsoft Office UI elements to provide users with access to new types of information. Developers can extend the Microsoft Office Fluent interface to add buttons to the Ribbon. Outlook Form Regions and Custom Task Panes provide a convenient way to let users view and edit data in back-end systems, and Windows Communication Foundation provides a convenient way to connect OBAs to back-end systems. Developers also can build native C++ applications that use UI elements of the 2007 Office release, such as the Ribbon Bar, Ribbon Status Bar, and Mini toolbar.

Easily Deploy and Update Applications
Companies can easily deploy applications for the Microsoft Office system built with Visual Studio 2008 Professional Edition by using the same ClickOnce deployment method used for other applications for Windows. Development groups can simply copy a new version of an application to a directory on a Web server and send users a link to the application in an e mail message.

Build Software for Mobile Devices
Mobile employees are often forced to work inefficiently, such as spending additional time in the office transferring paper-based records to a line-of-business application. Visual Studio 2008 Professional Edition makes it easy to extend the information in existing systems and applications to Windows Mobile powered devices, enabling mobile users to work more productively by putting the capabilities and information that mobile workers need at their fingertips when it is most usefulÑwhile they are on the move.

Develop Mobile Applications Using Existing Skills
Visual Studio 2008 Professional Edition makes it easy to extend the information in line-of-business systems to mobile workers. A project template for Windows Mobile-based applications provides a workspace with familiar tools, while the .NET Compact Framework lets developers use existing skills and familiar technologies, such as Windows Forms, Windows Communication Foundation, and LINQ. Enhanced mobile Windows Forms controls make it easy to modify and optimize mobile applications’ screens to support the smaller displays of mobile devices.

Easily Test and Deploy Mobile Applications
New device emulators automate testing scenarios, allowing developers to simulate real-world changes in device state, such as signal drop-off or a battery running out of power. Unit-testing support lets developers reuse some of the same unit tests that have been developed for a desktop version of a mobile application, or write new ones where needed. A security-aware IDE makes it easy to understand and manage custom security settings, and to view, add, remove, and manage security certificates on the device.

Manage and Synchronize Data
Visual Studio 2008 Professional Edition provides integrated support for Microsoft SQL Server 2005 Compact Edition, a free, lightweight version of SQL Server 2005 that makes an ideal, high-performance local data store for mobile applications. Developers can keep local data synchronized using the Microsoft Sync Framework, which enables collaboration and offline access for applications, services, and devices, including technologies and tools that enable roaming, sharing, and taking data offline.

Professional Edition and Standard Edition Product Comparison

Product Similarities

Visual Studio 2008 Professional Edition and Standard Edition share the following features in the Integrated Development Environment (IDE):

• Project system, including templates and multi-project solution support
• Code editors
• Windows Forms editor and designer
• Web Forms editor and designer
• Resource editors
• CSS editor to create, apply, and manage styles and cascading style sheets
• Web Page Designer, including split-pane HTML designer, markup validation, and Document Outline Window
• XML editor (XML, XSL, and XSLT)
• IntelliSense, including support for JavaScript
• Code Snippets
• Debugging (local and remote)
• Language compilers (Visual Basic .NET, Visual C#, and Visual C++)
• 64-bit compiler support (x64 only)
• Multi-Targeting support (.NET Framework 2.0, 3.0, and 3.5)
• ASP.NET AJAX support
• Windows Presentation Foundation (WPF) support, including a split-pane WPF designer, debugger support, and project template
• Windows Communication Foundation (WCF) support, including Test Client and Auto-Hosting tools
• Windows Workflow Foundation (WF) support, including designer
• LINQ support, including Object Relational Designer, SQLMetal command-line tool, LINQ-aware code editors, and debugger support
• Database design tools (local and remote)
• Object and Relational Designer (local and remote)
• Deployment tools (ClickOnce and MSI)
• Automation to write, record, and run macros
• IDE extensibility to create and use add-ins and packages
• Version control integration support (MSSCCI-compatible)¹
• SQL Server Reporting Services support
• Visual Studio Conversion Wizard for legacy projects

Product Differences

Visual Studio 2008 Professional Edition and Standard Edition differ as follows:

Feature	Standard Edition	Professional Edition
Build applications for the Microsoft Office system	No	Yes2
Build software for mobile devices	No	Yes
Software Assurance-Eligible	No	Yes3
User experience	Simplified menus and defaults	Full
Documentation	Online4	Online and Offline
Class Designer and Object Test Bench	No	Yes5
Crystal Reports	No	Yes
Server Explorer	No	Yes
Unit Testing	No	Yes6
Additional Tools Included	SQL Server 2005 Express Edition	SQL Server 2005 Developer Edition

Notes:

1. Microsoft Visual SourceSafe available for purchase separately
2. Does not include support for C++ projects
3. Software Assurance provided through MSDN Subscription
4. Offline documentation available as a separate download
5. Limited support for native C++ code, intended to be used only for visualization and documentation
6. Does not include Code Coverage; C++ support is limited