Year in review: Microsoft tries to find its 'wow'
Company finally gets Vista out the door. It also spends a bundle on acquisitions and looks ahead to the "computing cloud."
Microsoft tries to find its 'wow'
TalkBack 
E-mail 
del.icio.us 
Digg this A giant human billboard on a frosty January morning marked the long-anticipated mainstream launch for Microsoft's two flagship products--Windows Vista and Microsoft Office 2007.
"The 'wow' starts now," the software maker promised. However, response outside of Redmond was more muted. Reviews for the software were decidedly mixed, while consumer demand for Vista remained tepid, prompting some computer makers to bring back Windows XP, while other PC makers started including XP discs in the box with Vista machines. Microsoft also agreed to let big-name PC makers sell XP longer than originally planned.
The company also missed its goal on
the business side, with business uptake for Vista roughly on par with
that of XP in its first year. Microsoft
Meanwhile, Microsoft continued to move ahead with its "Live" services push. On the Windows Live front, the company finally hit send on a new version of Hotmail that was years in development. After spending much of 2006 launching a range of disparate services to see what stuck with consumers, Microsoft attempted to unify and refine many of the tools it launched over the past year. It also began opening up a bit about its longer-term plan to offer developers the ability to build their own applications on top of core Microsoft services such as storage and authentication.
On the Office Live front, Microsoft moved beyond small businesses and in December started testing Office Live Workspace, an online tool for viewing, storing, and sharing--but not editing--Office documents.
Even as it looked to find ways of taking its existing software online, Microsoft continued to branch into new areas. In May, the company took the wraps off its surface computing effort, a product that it had worked on for years, in uncharacteristic secrecy.
In business computing, the software giant continued its move into telephony. In October, the company released its Office Communications Server, a move that put the company in competition with Cisco System and others in the "unified communications" market.
Microsoft was also busy on the acquisition front. In March, it bought Tellme Networks.
That deal was followed up by the company's largest-ever purchase, its $6 billion bid for Aquantive, an online advertising company that few outside the industry had ever heard of. Late in the year, the company beat out Google to
During the year, Microsoft also continued to strike deals with the open-source community, including agreements with Samsung, Fuji Xerox, and TurboLinux. However, the company continued to raise the hackles of the Linux world, particularly with its claim that open source violates 235 of its patents. 
2007 Highlights
Windows chief bows out
special report As Vista hits store shelves after a long five years, Microsoft veteran Jim Allchin heads for retirement.
Microsoft turns to telephony
Company veteran Jeff Raikes talks about how Microsoft plans to make its big investment in telephone technology pay off.
Vista for the masses
special coverage After long delays, Microsoft is finally releasing the Windows update to consumers. See all of News.com's stories and more.
Hotmail redesign: Too Hotmail to handle?
special report Microsoft embarks in a years' long redesign of its Web mail program only to find most of its users like things the way they are.
Microsoft to buy Aquantive for $6 billion
Spending spree on advertising companies continues, as the software giant issues a rejoinder to Google's plan to purchase DoubleClick.
Microsoft hopes Milan table PC has magic touch
Years in the making, company's new tabletop computer is controlled entirely through touch--there's no mouse or keyboard.
Microsoft to extend Xbox 360 warranty
Software maker says it's seeing unacceptable number of repairs; investigation finds several factors could lead to hardware failures.
Microsoft's 'Cloud OS' takes shape
Once ethereal, Microsoft's plans to try to replicate its desktop position on the Web are starting to become clearer.
Microsoft and Facebook: The $240 million poke
Microsoft taking a stake in Facebook, as well as gaining the right to sell ads for Facebook internationally.
Windows Live hits the toddler stage
In an interview, Windows Live exec Chris Jones talks about what the 2-year-old is up to and comments on another youngster--Apple's iPhone.
At software giant, pain gives rise to progress
special report Security practices at Microsoft have been transformed since threats like Slammer and Blaster first wormed their way onto the scene.
Additional Headlines
Making sense of Redmond's $6 billion buy
Mystery surrounds Microsoft's virtualization flip-flop
Microsoft looks to improve its name game
Gates still has long to-do list
Microsoft tries to find its 'wow'
TalkBack E-mail del.icio.us Digg this A giant human billboard on a frosty January morning marked the long-anticipated mainstream launch for Microsoft's two flagship products--Windows Vista and Microsoft Office 2007.
"The 'wow' starts now," the software maker promised. However, response outside of Redmond was more muted. Reviews for the software were decidedly mixed, while consumer demand for Vista remained tepid, prompting some computer makers to bring back Windows XP, while other PC makers started including XP discs in the box with Vista machines. Microsoft also agreed to let big-name PC makers sell XP longer than originally planned.
The company also missed its goal on
the business side, with business uptake for Vista roughly on par with
that of XP in its first year. Microsoft
Meanwhile, Microsoft continued to move ahead with its "Live" services push. On the Windows Live front, the company finally hit send on a new version of Hotmail that was years in development. After spending much of 2006 launching a range of disparate services to see what stuck with consumers, Microsoft attempted to unify and refine many of the tools it launched over the past year. It also began opening up a bit about its longer-term plan to offer developers the ability to build their own applications on top of core Microsoft services such as storage and authentication.
On the Office Live front, Microsoft moved beyond small businesses and in December started testing Office Live Workspace, an online tool for viewing, storing, and sharing--but not editing--Office documents.
Even as it looked to find ways of taking its existing software online, Microsoft continued to branch into new areas. In May, the company took the wraps off its surface computing effort, a product that it had worked on for years, in uncharacteristic secrecy.
In business computing, the software giant continued its move into telephony. In October, the company released its Office Communications Server, a move that put the company in competition with Cisco System and others in the "unified communications" market.
Microsoft was also busy on the acquisition front. In March, it bought Tellme Networks.
That deal was followed up by the company's largest-ever purchase, its $6 billion bid for Aquantive, an online advertising company that few outside the industry had ever heard of. Late in the year, the company beat out Google to
During the year, Microsoft also continued to strike deals with the open-source community, including agreements with Samsung, Fuji Xerox, and TurboLinux. However, the company continued to raise the hackles of the Linux world, particularly with its claim that open source violates 235 of its patents.
2007 Highlights
Windows chief bows out
special report As Vista hits store shelves after a long five years, Microsoft veteran Jim Allchin heads for retirement.
Microsoft turns to telephony
Company veteran Jeff Raikes talks about how Microsoft plans to make its big investment in telephone technology pay off.
Vista for the masses
special coverage After long delays, Microsoft is finally releasing the Windows update to consumers. See all of News.com's stories and more.
Hotmail redesign: Too Hotmail to handle?
special report Microsoft embarks in a years' long redesign of its Web mail program only to find most of its users like things the way they are.
Microsoft to buy Aquantive for $6 billion
Spending spree on advertising companies continues, as the software giant issues a rejoinder to Google's plan to purchase DoubleClick.
Microsoft hopes Milan table PC has magic touch
Years in the making, company's new tabletop computer is controlled entirely through touch--there's no mouse or keyboard.
Microsoft to extend Xbox 360 warranty
Software maker says it's seeing unacceptable number of repairs; investigation finds several factors could lead to hardware failures.
Microsoft's 'Cloud OS' takes shape
Once ethereal, Microsoft's plans to try to replicate its desktop position on the Web are starting to become clearer.
Microsoft and Facebook: The $240 million poke
Microsoft taking a stake in Facebook, as well as gaining the right to sell ads for Facebook internationally.
Windows Live hits the toddler stage
In an interview, Windows Live exec Chris Jones talks about what the 2-year-old is up to and comments on another youngster--Apple's iPhone.
At software giant, pain gives rise to progress
special report Security practices at Microsoft have been transformed since threats like Slammer and Blaster first wormed their way onto the scene.
Additional Headlines
Making sense of Redmond's $6 billion buy
Mystery surrounds Microsoft's virtualization flip-flop
Microsoft looks to improve its name game
Gates still has long to-do list