Steve Ballmer has stated his case for Software PLUS Service.  This should not be news for anyone who has been watching the world, but what is great to see if how Microsoft is trying to get it's existing partner leveraged model to work in the new web 2.0/3.0 world.  Of course this will not suit everyone, but if done well, everyone can move forward is a happy little dance as things get re-jigged. Ballmer Outlines Microsoft's Software-As-A-Service Plans - Software - IT Channel News by CRN and VARBusiness noted

Microsoft CEO Steve Ballmer believes the evolution of the "computational model" and new user interfaces are going to create a flood of opportunities for the vendor's channel partners.

In a Tuesday keynote speech to more than 12,000 attendees at Microsoft's worldwide partner conference in Denver, Ballmer provided insight into the Windows Live platform and how new technologies like Silverlight mark the beginning of the transformation to a new user interface model.

Ballmer peppered his keynote with demos and testimonials about upcoming technologies, focusing on Microsoft's Google-like Windows Live services and on Silverlight, Microsoft's fledgling Adobe Flash rival.

Silverlight demos have been in the spotlight at all of Microsoft's recent conferences, including Mix07 and TechEd. Ballmer's keynote showcased an MLB.com application created by Microsoft partner Frog Design, illustrating the power of the platform Microsoft hopes will bring rich Windows functionality to mobile devices and Web browsers.

One big question partners have had about the future of Windows Live is what will happen on the back end with servers, which used to be on customers' premises, but increasingly are hosted and on the Internet, Ballmer noted.

The emergence of server farms, and the ability to adjust capacity on demand has enabled the focus to move from back end servers to shared computation handled on customer premises, he added.

"This is a long term migration to bring the best of the web and best of the enterprise together," said Ballmer.

Microsoft also released a press release stating the place of these solutions, see below, and also released a whitepaper on the Microsoft Software + Services Partner Opportunity.

Driving Customer Value and Partner Revenue Through Software Plus Services

To help partners understand how they can increase their opportunities and revenue through the software-plus-services approach, Microsoft is highlighting some of the ways in which partners can monetize the new opportunities, including advertising, hosting, referrals, customization, reselling, consulting, design, development, support and training.

“Our product portfolio, long-term investments in XML and .Net and the diversity of our partner ecosystem give Microsoft a competitive advantage in the software-plus-services era,” said Allison L. Watson, corporate vice president, Microsoft Worldwide Partner Group. “This unique combination allows us to empower people and partners in their roles with rich solutions that drive new business opportunities. Ultimately, the software-plus-services transformation is about giving customers more choice and flexibility in how software is delivered.”

Turner also outlined new partner opportunities created by the introduction of successful products such as the Windows Vista^® operating system, the 2007 Microsoft Office system and Microsoft Exchange Server 2007 and People-Ready Business offerings. “Every partner aims to be the best at what they do, and Microsoft is here to help them achieve their goals by providing solutions and tools that allow them to provide customers what is right for their business at the right time,” he said.

In anticipation for the most significant Microsoft enterprise event in the next year, Turner announced that Windows Server^® 2008, Visual Studio^® 2008 and Microsoft SQL Server™ 2008 will launch together at an event in Los Angeles on Feb. 27, 2008, kicking off hundreds of launch events around the world. As the next wave of innovation from Microsoft’s Server and Tools Business, these three products will provide a reliable and security-enhanced enterprise platform, serve as the foundation for the next generation of Web-based service applications, and broadly support virtualization and business intelligence. Windows Server 2008, SQL Server 2008 and Visual Studio 2008 represent tremendous opportunities for partners and customers, and as part of the launch wave throughout 2008, Microsoft is planning extensive and far-reaching IT pro, developer and partner outreach, including worldwide training, online and virtual events, as well as myriad resources that will be made available in the coming months to help ensure partners and customers are ready to capitalize on the new benefits offered by these products.

You can see the Steve Ballmer keynote on these links 100 kbs | 300 kbs | 500 kbs.

ttfn

David