Software-plus-services is an industry shift that combines services on the web with client and server software to deliver more compelling opportunities and solutions. Microsoft is dedicated to helping its partners and customers - consumers and businesses – take advantage of this approach to maximize choice and flexibility across PCs, the web, mobile devices, on-premises servers, and cloud-based services.

The Windows Azure platform is part of this vision, providing the power of choice and flexibility in developing, operating, migrating, and managing applications that exist on the internet or devices to provide the best experience for users. It enables this by utilizing common languages, runtimes and frameworks – a common toolset that spans from the service in the cloud to a server and from the PC to the browser to the phone.

Windows Azure is strategic to Microsoft’s vision of Software-plus-Services and overall services strategy by offering customers, developers, and businesses a transformation in connecting devices, business, productivity, and software.

This approach provides a broad canvas to imagine and create innovative solutions that would be constrained by using just one approach. Developers can now take advantage of Microsoft’s strengths in on-premises operating systems and couple them with the Windows Azure platform cloud capabilities. This enables the delivery of unique and user-centric applications and opens the doors to a new generation of technology across a connected web, social, and device mesh.

Software-plus-Services is the next logical step in the evolution of computing. It represents an industry shift toward a design approach that is neither exclusively software-centric nor internet-centric, and the pairing of Xbox 360 and Xbox Live is one of the clearest demonstrations of its value.

The winning recipe for Xbox 360 starts with one part Microsoft Game Studios software, in the form of immersive, blockbuster in-house game titles like Halo and Gears of War, along with hundreds of third-party titles that represent the full gambit of gaming genres. And then added to the mix is a wide range of accessories like the wireless racing wheel and the upcoming Project Natal that enhance your gaming experience.

But the real magic of Xbox happens when you connect your console through broadband internet to the Xbox Live service. Whether you want casual gaming, fast-paced arcade action, new game content or multiplayer combat scenarios, Xbox Live delivers something for everyone. What’s more, you can chat with all your friends from the comfort of your own living room—strategizing before a game, teaming up in game or just socializing while doing your own thing. With the Xbox LIVE Vision you can even video chat while you game face to face.

While the Xbox 360 is known primarily as a gaming device, it’s also able to bring some of the best computer based internet services to the living room, in a high-fidelity experience. Users can enjoy dedicated Netflix, Twitter, Facebook, Zune and Last.fm applications directly from the Xbox dashboard. With the Xbox 360, it’s possible to stream movies in full 1080p and catch up with your friends on Facebook without ever leaving the couch. The ability to create these new applications has turned the Xbox into more than just a gaming system; it is a computer platform for the living room.

Microsoft’s vision for Software-plus-Services is to power simple, seamless, integrated experiences that let people engage with their devices, and each other, according to their own individual passions. In recent years, Microsoft has applied that vision to many of its products, but nowhere is it more simply and elegantly exemplified than with Zune.

Zune revolves around providing a connected entertainment experience across the TV, PC and mobile devices through Software-plus-Services. The Zune ecosystem encompasses PC software, the Zune HD portable media player, media streaming functionality on the Zune.net website and an unparalleled instant on, smooth streaming 1080p HD video service within Xbox LIVE.

The Zune HD is the first portable media player that combines an HD Radio™ receiver, High Definition video output capabilities through the Zune HD AV Dock, an organic light emitting diode (OLED) touch screen, Wi-Fi and an Internet browser. The Zune HD features include some of the most powerful, high performance components packaged in a sleek, stylish design.

The beautifully designed Zune PC software includes media discovery features and experiences for managing and building media collections. From the high-resolution artist artwork to the clean menu and user interface, Zune PC software provides a playback experience that is unique among other media management applications.

The Zune Marketplace online store provides access to great Music and Video content to use across the Zune ecosystem. Zune offers a download-to-own music option, as well as a monthly music subscription service. Zune Pass subscription gives unlimited access to streaming and downloading music from a library of over 6 million songs. Zune Pass subscription can also be used on 3 PCs, 3 Zune devices and to stream music directly to the Zune HD, Zune PC software and over the web from Zune.net

Zune video on Xbox LIVE Marketplace is a major stepping stone in Microsoft’s journey to deliver on its connected entertainment vision globally. The Xbox 360 has become a key component to living room entertainment and Zune provides the premier video service that delivers up to 1080p instant on, smooth streaming video resolution. In the US, Zune video on Xbox LIVE also enables the purchase of most video content once and the ability to view it across the PC, Zune HD and Xbox.

Together with device, software and service, Zune delivers aptly on the promise of Software-plus-Services from Microsoft.

The PC is central to how people work, play and stay in touch. But our lives revolve around much more than the PC – the information and services we use should transcend any single device – wherever we go, our digital lives should follow.

That’s why Microsoft is delivering experiences that seamlessly connect the PCs, phones, cameras, game consoles, video and music players people use every day, through the greater sum of rich client software and high-speed internet services.

Over the years, Windows has begun to dissolve the artificial barriers between devices, people and information – delivering new capabilities and unprecedented choice to a billion people and businesses around the world. Now, as the power of devices increases and the ubiquity of the Web unfolds, Microsoft’s Software-plus-Services strategy is helping Windows leave even more walls behind.

Through the combination of Windows, Windows Live and Windows® Phone, Microsoft is delivering the platforms, tools, infrastructure and solutions to enable new kinds of applications and services that extend from the server, to the datacenter, to the cloud – and from the browser, to the PC, to the phone and beyond.

With this work, we hope to empower the world’s software innovators and unleash a new wave of software and services that truly deliver on the promise of the digital lifestyle, with experiences that go wherever people’s lives take them and simply work wherever, however and whenever they want it.

As the world of work becomes more complex and dynamic, the technology we use to get things done is changing dramatically. The single-purpose tools and discrete devices we use are giving way to solutions that weave all our applications, services and devices into a seamless whole. This shift reflects our growing demand for choice – the freedom to decide where we work, how we work and how we share that work with others.

For years, Microsoft Office has broken down the walls between the diverse applications and services we use at work every day. With Microsoft’s Software-plus-Services strategy, even more walls are soon to disappear: within organizations and teams, and between rich applications and powerful Internet services, and between the PC, the phone and the Web. As Microsoft Office evolves, the powerful and familiar interface you know today will no longer be tethered to the desktop – it will follow wherever your work takes you.

This power of choice emerges from seamless connections within the Microsoft Office System and how it leverages robust services both on premise and in the cloud. Whether it is Microsoft Exchange or Microsoft Exchange Online for email, Office SharePoint or SharePoint Online for corporate collaboration, Office Communications Server or Office Communications Online for real-time text and voice messaging or Office Live Workspaces to access your work from any computer on the web – Microsoft Office provides a combination of Software-plus-Services that is truly greater than the sum of its parts.

Microsoft’s Software-plus-Services strategy envisions a world where rich, highly functional and elegant experiences extend from the PC, to the Web, to the devices people use every day. These experiences are about much more than look and feel. They connect across services and devices. They are reliable, scalable and secure. And they are seamlessly connected to our digital lives, in every aspect.

One way this strategy comes to life on the Web is with Microsoft Silverlight – a powerful development platform for creating engaging, interactive user experiences for web, desktop, and mobile applications. Silverlight is a free plug-in powered by Microsoft’s .NET framework that is compatible across browsers, devices and operating systems to bring a new level of interactivity to users. With more than 100 controls, providing extensive layout and styling options, a powerful set of communication protocols for fast, smooth user experiences, robust data access and strong support for high-definition media, Silverlight helps create visually rich experiences using familiar Microsoft development tools such as Visual Studio and Expression Studio as well third party programs.

Silverlight is part of a continuum of technologies – from .NET, to Windows Phone, to the Windows Presentation Foundation (WPF) – that are enabling developers to create experiences that transcend the many devices in our digital lives, offering a consistent and compelling experience on the PC, on the phone and on the Web. Silverlight 4 delivers a full suite of powerful features to application developers, bringing innovative platform capabilities to browser-based experiences. Silverlight provides an ideal platform for developing and deploying modern business applications for both internal and end-user applications on both sides of the firewall. With printing support, rich reporting, integration with back-end systems and server products including Microsoft SharePoint Server 2010, Microsoft Office and Microsoft Internet Information Services (IIS), Silverlight is ready for business.

The business value of CRM and ERP systems is undeniable, but organizations have been challenged by lengthy and costly implementations, inflexible software, and poor user adoption – many business leaders wonder if it’s really worth the trouble and expense. As part of Microsoft’s Software-plus-Services strategy, Microsoft Dynamics can help solve these challenges with powerful, flexible, easy-to-use software delivered either through the cloud or on-premise to help organizations quickly and economically get the benefits of sophisticated business intelligence.

Microsoft Dynamics Online combines a cloud-based backend with familiar productivity software on the client to create a powerful, scalable system where professionals can access customer information through a full suite of marketing, sales and customer service capabilities directly from Outlook. On-premise and partner hosting options are also possible, giving businesses the power to pick a deployment model that fits their organization. This combination of Software-plus-Services helps organizations by giving workers the information they need and arming them with the tools to make meaningful change in their business.

Microsoft® HealthVault™ is a free privacy-and security-enhanced online service designed to put consumers in control of their and their families’ health. Consumers can use HealthVault to gather copies of their health data obtained from physicians, health plans and pharmacies, and store that information in their HealthVault record. HealthVault enables application and device manufacturers to develop online products and services (apps) which are accessible by consumers to manage their health and fitness. With HealthVault Connection Center, consumers can upload information from health and fitness devices and store that information in their HealthVault record. Consumers can then chose to share a copy of their health information with their physicians and loved ones, as well as re-use and exchange health information among different apps.

HealthVault gives people the means to play a more active role in their health. Consumers can chose apps that gather health information, track and monitor progress, complete health-focused tasks, educate them about health issues, and connect disparate elements of their care. HealthVault offers a single place to build a health data asset comprised of enduring health histories and medication inventories.

The principles underlying the design of HealthVault support the industry shift toward a Software-plus-Services model. HealthVault Connection Center is a software-based utility that allows users to upload data from health and fitness devices such as heart rate monitors, blood pressure monitors, peak flow meters, glucometers, and pedometers to their HealthVault record. HealthVault is the online personal health database with a set of XML interfaces that allows third parties to create valuable health, wellness and fitness services for consumers.

By unlocking health data, HealthVault helps consumers take advantage of health solutions so they can better manage their health. HealthVault is another Microsoft service providing value to consumers by realizing the potential of Software-plus-Services.

Learn more at www.HealthVault.com.

Microsoft Amalga is a solution that helps healthcare professionals access the information they need for improved decision making and process improvement. The flagship product, Amalga Unified Intelligence System (UIS) aggregates data from multiple clinical and administrative systems across organizational boundaries and delivers comprehensive patient information to healthcare professionals. This tool empowers healthcare professionals while accommodating a critically important player that’s often forgotten, the healthcare consumer: patients are able to contribute personal health information and manage consent online via Microsoft HealthVault, as well as upload data from home devices such as scales and glucometers. With this technology, patients and medical professionals can exchange information seamlessly and securely giving medical professionals the confidence to make important life changing decisions quickly.

Amalga Hospital Information System (HIS) * is another solution that is part of the Amalga platform. This software is an integrated hospital information system that delivers a complete, agile hospital information system that is affordable, flexible, and intuitive. Amalga HIS also works with HealthVault, giving healthcare professionals a better understanding of a patient’s medical history by enabling citizens in participating countries to access discharge summaries to better manage their health and share information with their health providers both inside and outside of the hospital.

Amalga’s healthcare platform is possible because of a powerful mixture of software and services. When combined, healthcare professionals are able to cross organizational boundaries and other barriers to get the information they need to provide better healthcare for less.

Learn more at www.microsoft.com/amalga

*Amalga HIS is not available in the U.S.

Microsoft’s software plus service strategy represents an industry shift toward a design approach that is neither exclusively client-centric nor browser-centric. In order to deliver on this vision, desktop applications and the services that enhance them need to be able to communicate with each other.

Microsoft .NET Framework is the technology backbone that makes fluid communication between software and service based applications possible. .NET provides a comprehensive programming framework that helps developers produce new applications for the web, desktop and other devices. Developers can use the same set of skills across an ever growing platform ecosystem to easily create applications that address the needs of consumers and businesses.

The .NET Framework has long been used for Windows and web applications. But now, developers can leverage the .NET Framework and the skills that they already have to create applications that support virtually unlimited scalability and storage through Windows Azure, Microsoft’s cloud offering. Additionally, .NET can be used with other devices such as the Xbox and Windows Mobile devices. With this common framework, developers can seamlessly integrate data and services from the cloud into their applications across a large device ecosystem. And with Silverlight and Windows Presentation Foundation (WPF), developers and designers can create rich, immersive applications that expose data in new and innovative ways.

As businesses begin to move to a Software-plus-Services model they will need to provision cloud-based solutions as a complement to preexisting on-premise solutions. The cloud adds a new level of complexity to IT security, and forces IT organizations to be responsible for cloud security in addition to platform, application and network security. To address this need, Microsoft Forefront takes a fundamentally different approach to security known as Business Ready Security. Security needs to encompass protection, access and management, all built around user identity and integrated with a highly secure, interoperable platform. Protection and access must scale seamlessly across an ever changing technology landscape, including both on-premises and cloud based environments.

Microsoft’s strategy is to deliver Business Ready Security regardless of whether a customers’ infrastructure is on-premise, cloud-based, or a mixture of both. Forefront Online Protection for Exchange, for example, provides a fully hosted protection solution for email messaging. Not only is secure messaging provided as a service, but can also be integrated on premise with Forefront Protection 2010 for Exchange Server. Centralized management of both solutions is provided through the Forefront Protection Manager. This ability to manage on-premise and hosted solutions in a single console is unique, allowing IT departments to adopt hybrid cloud solutions without worrying about security. As IT organizations move to a Software-plus-Services model, Microsoft Forefront will continue to offer easily managed, best-in-class protection and access solutions that enable business while managing risk and empowering people.

Organizations today have many choices regarding their collaboration and information management environments. As budget pressures continue to drive evaluations of new and existing technologies, hosted services offer the ability to reduce on-premises infrastructure and administrative costs. Collaboration technology is quickly becoming a critical communication and productivity tool in today’s businesses. A consistent set of features allows users to complete tasks quickly and collaborate with coworkers more effectively.

SharePoint Online provides the robust capabilities of Microsoft SharePoint Server and is hosted by Microsoft as a cloud-based service. With SharePoint Online, your IT team can provide a single, integrated location where employees can: efficiently collaborate with team members, find organizational resources, search for information, and manage content and workflow, without the operational burden that comes from managing the infrastructure associated with on-premises software. SharePoint combines a rich collaborative experience, but it also supports rich application development and integration.

The global economic environment will drive demand for less expensive cloud based collaboration services that benefit from the economies of scale. Organizations will be reticent to compromise cost reduction for a lack of control of their data, or limit control of their policies and procedures. That’s why a mixed approach to the cloud, with the choices afforded by software plus services, is a much more flexible and realistic scenario for most organizations. While we are advocates for the delivery of cloud based services, there is a desire among many customers to avoid a technology ultimatum. We believe it’s critical to focus on what customers want, and their readiness to embrace the cloud for various applications in the context of their circumstances, instead of forcing a decision to move everything to the cloud. Information management and security remains the single biggest IT issue for organizations. Taking advantage of the benefits offered by SharePoint Online in conjunction with other cloud based services delivered through BPOS and your existing on premises technology investments can help to simultaneously reduce the costs of managing your collaboration infrastructure without sacrificing control.