'Our customers increasingly appreciate the option of moving certain applications and services into the cloud while maintaining an on-premise option for their ERP solution,' said Crispin Read, general manager of Microsoft Dynamics ERP.

'Providing this choice and flexibility is a competitive advantage for us and our partners around the world.'

The Sites Service allows customers to seamlessly create and manage Web sites within the Microsoft Dynamics ERP application. For example, people can easily create landing pages for marketing campaigns, dedicated request for quote sites to get quotes from business partners, sites for product registration information and customer feedback, human resources sites for job recruiting, and sites on anything that the customers would want to reach out to their community on. Sites Service capabilities will include embedded intelligence and optimization models, which provide analytics to help customers make the most of their marketing efforts all within the context of their Microsoft Dynamics ERP application.

Another new service, Commerce, extends multichannel commerce scenarios by providing a link between the ERP products and different e-commerce opportunities such as business-to-consumer e-commerce marketplaces, dedicated e-commerce storefronts or built-in shopping cart functionality. This enables customers to list products and accept orders from a multitude of places, all from one easy-to-use interface.

Lastly, Payment enables customers to process payment transactions from the Microsoft Dynamics ERP interface across multiple channels, including e-commerce, point of sale and call center transactions. The Payment Service currently works with leading payment processing services, including First Data Merchant Services Corporation, for all major credit cards, such as Visa, MasterCard, American Express and PayPal. As part of today's announcement, Microsoft shared that the company has recently signed agreements with CyberSource Corp. and Pensio to provide these services to its ERP customers in the U.S. and Europe, with more agreements forthcoming.

'We are excited to be working closely with Microsoft as it extends its ERP offerings to allow for online capabilities such as payment processing and e-commerce,' said Michael Bolton, partner at Keyora Inc.

'More customers are demanding speed to market. This move by Microsoft can help increase its competitiveness.'

There are now more than 150 partners delivering subscription-based Microsoft Dynamics ERP solutions in geographies around the world, with strong momentum for new partners joining the program.

'The ability to provide Microsoft Dynamics ERP cloud solutions to Microsoft partners worldwide is central to our business strategy,' said Herb Prooy, CEO of SaaSplaza, a Microsoft hosting partner.

'Our partners appreciate the ability to move certain of the customers' applications into the cloud while maintaining an on-premise option or any mix of these. This option protects their current investment while getting them ready for the future, something that other vendors do not provide today. It's been a real competitive advantage for us at SaaSplaza, our partners and their customers as well.'

As further evidence of customers' desire for choice in deployment, Saugatuck Technology Inc., a Westport, Conn.-based research firm focused on emerging and disruptive technologies, revealed that software as a service (SaaS)-based solutions are being increasingly linked with on-premise data, applications and processes through Web services-based integration APIs, such as those contained in Microsoft Dynamics ERP, and that although most SaaS vendors with on-premise and cloud-based offerings will not have interoperating versions, or seamless data compatibility through 2011, Microsoft Dynamics ERP will be among the handful of first-wave 'hybrid' exceptions.

The new Microsoft Dynamics ERP Sites and Commerce Services are expected to be available in the first half of 2010, with the additional payment service providers available in the first quarter of 2010. More information about the details of Microsoft's online ERP strategy, or the new online services being announced today, can be found at http://www.microsoft.com/dynamics/en/us/erp-software-plus-services.aspx .

About Microsoft Dynamics

Microsoft Dynamics is a line of easy-to-use, integrated and adaptable ERP and CRM applications that enable business decision-makers to quickly respond to market shifts, take advantage of new trends, increase their competitive edge and drive business success. Microsoft Dynamics solutions are delivered through a world-class network of partners who provide specialized services and additional innovation to help customers excel in their industry.

About Microsoft

Founded in 1975, Microsoft (Nasdaq 'MSFT') is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

*Saugatuck Technology Report: Key Trends in SaaS/Cloud: Clearing the Air; Oct. 20, 2009

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Richard Rabins, Co-Chairman of Alpha Software, continues talking about more of the reasons that web developers have been giving Alpha Five Version 10 rave reviews even before it has been released.

To find out more about our topic: "In Order To Have a Successful Web Application -- Being Easy to Modify and To Maintain is a Must" and to read a complete transcript of this interview go to: http://www.alphasoftware.com/press/letstalkcomputers/a5v10_part5.asp

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Despite their relative fearlessness to strike out on their own in a rocky economy, nearly one in three new entrepreneurs credit technology as a key catalyst in driving their entrepreneurial spirit.

"Technology is critical to a business owner's success. It helps increase cost savings, supports innovation and, ultimately, contributes to growth," said Christoph Wilfert, general manager of SMB solutions for Microsoft. "Many newer technologies, such as the cloud-based offerings of Microsoft's productivity applications, promise great value but still have limited awareness among SMBs."

According to the research findings, entrepreneurs picked technology as one of the top three considerations when starting their business, along with marketing, advertising and public relations, and capital funding. Furthermore, affordability (71 percent), security (37 percent) and overall technological capability (35 percent) were identified as the top three most important factors when evaluating technology purchases for their business.

Microsoft offers free or low-cost options for entrepreneurs who are just getting started. For example, Microsoft Office Live Small Business is a set of Internet-based tools that provides everything needed to take a business online, including a free Web site and services to market and manage a small business.

Evaluating and incorporating newer subscription-based technologies, often referred to as software as a service (SaaS), is a low-cost or free option for small and midsize businesses seeking to simplify and alleviate workloads so they can focus on growing their business. For instance, the Microsoft Business Productivity Online Suite is an integrated set of messaging and collaboration solutions hosted by Microsoft. It consists of Microsoft Exchange Online, Microsoft SharePoint Online, Microsoft Office Live Meeting and Microsoft Office Communications Online. These online services give businesses streamlined communications with high availability and comprehensive security without the cost or hassle of managing onsite hardware and software.

Microsoft's latest operating system, Windows 7, also addresses the business needs of SMBs with its new and enhanced features, including the following:

    --  HomeGroup enables small businesses without a server to build a basic
        network and easily share documents, printers and devices across multiple
        PCs.
    --  Advanced Backup schedules a periodic backup to save data or an entire
        system image to a network location or a local drive.
    --  Encrypting File System is a powerful encryption technology that encrypts
        files and folders and helps protect a business's confidential
        information, such as credit card numbers or employee information.
    --  Windows Aero enhancements (such as Aero Snap, Aero Peek and Aero Shake)
        help intuitively navigate, arrange and work with multiple open windows
        on the desktop.
    --  Windows Mobility Center makes mobile computing easier with access to all
        mobile settings in one place.
    --  Location-Aware Printing intuitively identifies and sends documents to
        the correct available network printer when working between home and
        office.

"Throughout the development of Windows 7, we asked small- and midsize-business owners what they regarded as their greatest technology considerations," Wilfert said. "Overwhelmingly, we heard speed, reliability and security. Windows 7 delivers all those and much more. We are excited to say that we have responded to the needs of entrepreneurs and have taken the fear out of starting a business, regardless of the economic climate."

Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

SOURCE Microsoft Corp.

http://www.microsoft.com

'It enables people to do more of what they want to do more easily and more quickly, and customers are responding. Since launch, we've already sold twice as many units of Windows 7 than any other operating system we've ever launched in a comparable time.'

Ballmer also pointed to the momentum the company was experiencing in other key areas of its business, with delivery of products and services including Bing, Windows Server 2008, Windows Azure, and the upcoming release of Microsoft Office 2010.

Over 98 percent of the voting shareholders supported the company's executive compensation practices in Microsoft's first vote on executive compensation, also known as

'say on pay.' In September, Microsoft's board adopted a triennial

'say on pay' model in which the company's shareholders will have the opportunity to vote every three years on the compensation program for the company's named executive officers. Microsoft's executive compensation program emphasizes long-term equity, rather than short-term cash, to link executive compensation more closely to company performance and the interests of shareholders. Microsoft is the first company to proactively implement a triennial vote.

In addition, the following proposals were acted on by the company's shareholders at the shareholder meeting:

* Elected nine directors to serve until the next annual meeting of shareholders

* Ratified the selection of Deloitte & Touche LLP as the company's independent auditor

* Approved amendments to the company's articles of incorporation, creating a right for shareholders to call a special meeting

* Voted down two shareholder proposals related to healthcare reform and charitable contributions

All director nominees, the 'say on pay' proposal and the ratification of the independent auditor each received a vote of over 98 percent of votes cast.

The proposed amendments to the articles of incorporation received a vote of over 99 percent of votes cast (and 85 percent of shares entitled to vote).

The shareholder proposals that were not approved each received 4 percent of votes cast.

Microsoft's board of directors consists of William H. Gates, Microsoft chairman; Steven A. Ballmer, Microsoft chief executive officer; Dina Dublon, former chief financial officer of JPMorgan Chase; Raymond V. Gilmartin, former chairman, president and chief executive officer of Merck & Co. Inc.; Reed Hastings, founder, chairman and chief executive officer of Netflix Inc.; Dr. Maria Klawe, president of Harvey Mudd College; David F. Marquardt, general partner at August Capital; Charles H. Noski, former vice chairman of AT&T Corp.; and Dr. Helmut Panke, former chairman of the board of management at BMW Bayerische Motoren Werke AG. Seven of the nine board members are independent, consistent with the requirement in the company's governance guidelines that a substantial majority be independent.

The board has five committees: an Audit Committee, a Compensation Committee, a Finance Committee, a Governance and Nominating Committee, and an Antitrust Compliance Committee. The Audit Committee members are Dublon, Panke, and Noski (chairperson). The Compensation Committee members are Dublon (chairperson), Hastings and Panke. The Finance Committee members are Hastings, Marquardt (chairperson) and Noski. The Governance and Nominating Committee members are Gilmartin (chairperson) and Marquardt. The Antitrust Compliance Committee members are Gilmartin, Klawe, and Panke (chairperson). Founded in 1975, Microsoft (Nasdaq 'MSFT') is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass on Microsoft's corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft's Rapid Response Team or other appropriate contacts listed at http://www.microsoft.com/presspass/contactpr.mspx .

CONTACT: Rapid Response Team, Waggener Edstrom Worldwide Tel: +1 503 443 7070

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