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March 23, 2006 5:13 PM

Can Microsoft Make the Trains Run on Time?



Windows hasn't cornered the market on Microsoft date slips.

While the Windows Vista launch delay made big headlines this week, the Office 2007 one did not. On Thursday – in the midst of the hubbub over Microsoft's reorganization of its Platforms & Systems division – Microsoft officials acknowledged that Office 2007 is now going to launch in 2007, not 2006.

"It is true that Microsoft has decided to coordinate with Windows Vista to hit retail store shelves in January 2007, but that's a reflection of the desire to provide an easy purchasing process for consumers and a simplified selling opportunity for retailers," said a company spokeswoman. "There is no slip in schedule, just a change in delivery for the benefit of consumers and retailers."

She added that, just as is the case with Windows Vista, Microsoft will still release the Office 2007 code to manufacturing before the end of calendar 2006. But only volume licensees will be able to take delivery of the code in 2006. All other Office customers will have to wait until January 2007 to obtain Office 2007 through new PC preloads and the retail channels.

Microsoft announced Thursday that Steven Sinofsky, the head of Microsoft Office development, will be moving over to the Windows team to spearhead engineering of future versions of Windows beyond Vista. Company watchers said they believed Sinofsky's appointment was linked to his reputation as an individual who can ship code on time and with much predictability.

While the Office trains typically have run in a more timely manner than the Windows ones, Office is not immune from slips.

Windows Vista is running later than expected: It now looks like the April Community Technology Preview (CTP) build of Vista, will actually ship in mid-to-late May.

But the next test release of Office 2007 also is running behind schedule. Last year Microsoft privately told partners to expect Office 2007 Beta 2 in March. Now that build is looking more like May, as well, according to Microsoft testers, who requested anonymity.

Company watchers said they remained bullish about Sinofsky's ability to bring more rigor and discipline to the Windows unit.

"The Office leadership is known for getting things done," said Joe Wilcox, an analyst with Jupiter Research. "While the Windows and Windows Server groups are renowned for product delays, the Office folks tend to ship pretty much on time. There appears to be tighter execution and control."

Wilcox acknowledged there are some differences between the Windows and Office organizations, which are the cash cows fueling much of Microsoft's growth.

"Office doesn't share Windows' burdens," Wilcox said. "The Windows partner ecosystem is much broader and new operating systems impact many more software or hardware components than does a new Office version. Windows is a much more complex product to develop. Maybe the complexity is reason enough for improving execution."

Directions on Microsoft analyst Rob Helm agreed.

"Office's track record is different, and the team's philosophy has been key," Helm noted. "The group has been much more careful about trying to integrate outside technologies. It has done so in some cases (adopting ASP.NET for the SharePoint line, for instance). But when something like Windows Vista has looked unpredictable, the Office group hasn't hesitated to cut the ties. So Office 2007 will go out the door having made very few bets on Vista technology."

But the $64,000 remains as to whether "Sinofsky be able to transfer that philosophy to the Windows team," Helm said. "He can't ship Windows by himself, after all. However, I think he has the technical background and the business experience to give him as good a chance as anyone."

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