Microsoft Connects the Den and Living Room

As expected, Microsoft debuted home server software, dubbed Windows Home Server. Microsoft plans to make the software available at retail directly to consumers or pre-installed on computers. Next stage testing begins in a few weeks, according to my sources. Later this year, HP will release the MediaSmart Server, running the software.

Consumers would use Windows Home Server to back up and access all their digital content, and they would have broader access through Windows Live services, through which Microsoft will provide a personal domain.

The software's significance cannot be understated. Microsoft's goal is something bigger than providing consumers a place to store their stuff. The company seeks to pull information relevance back to the computer. With Web 2.0, which I call the Web Platform, people are storing their stuff on Internet servers at services like Flickr, Gmail or MySpace. This activity shifts relevance away from the desktop or home network where Microsoft is dominant. The Web platform's shifting relevance could do to Microsoft what DOS, Windows and the PC did to IBM and the mainframe.

The central repository, for personal and purchased content, is a sensible approach for Microsoft. The long-term question is appeal of local versus remote storage. Windows Home Server means investment in software and/or hardware, whereas Web services typically are free. I do believe there will be interest in a personal Web server, particularly from home-based or small businesses.

Microsoft's 10 has a blog and video on Windows Home Server.

People watching the live keynote stream missed out. After Gates announced the software, Microsoft purposely blacked out a portion of the presentation under the guise of protecting intellectual property. CES is a public event, so surely the blacked out content will get out.

Microsoft also revealed that Xbox 360 would support Microsoft TV IPTV later this year, which would interactive television and gaming via the console, the IPTV service and Xbox Live. I've been expecting this for a long time. Back in 2003, Microsoft's Ed Graczyk told me that Microsoft envisioned Media Center and Xbox eventually supporting Microsoft's TV software. The move clearly moves Xbox way beyond the role of game console into a much larger role, as Microsoft seeks a larger presence of the living room.

Microsoft expects the software to be available for holiday 2007 from companies deploying the Microsoft TV IPTV Edition software platform. AT&T and Verizon are both potential candidates, depending on how they have deployed IPTV.