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07.24.2014 - Microsoft announces winners and finalists of 2014 Sales Achievement program



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REDMOND, Wash. — July 29, 2014 Microsoft Corp. on Tuesday announced the winners and finalists of the Sales Achievement program. Winners and finalists were recognized at the Microsoft Worldwide Partner Conference 2014, the company’s annual event for industry partners, July 13–17 in Washington, D.C. The Sales Achievement program recognizes global Microsoft partners for achieving exceptional sales results in fiscal year 2014.

“Partners that won this year’s Sales Achievement recognition have demonstrated extraordinary commitment in transforming their businesses to support customers worldwide with Microsoft technology,” said Phil Sorgen, corporate vice president, Worldwide Partner Group at Microsoft. “As customers’ needs evolved, these partners made the right investments to grow their businesses with Microsoft and are now well-positioned to take advantage of new opportunities in fiscal year 2015 and beyond.”

Categories, winners and finalists appear below:

Azure Sales Achievement
Winner: Softbank
Finalists: ATEA and NEC Corp.

Cloud LSP Sales Achievement
Co-Winners: Insight Enterprises and SoftwareONE
Finalist: Bytes Technology Group

Corporate Accounts LSP Sales Achievement
Winner: Crayon
Finalists: Comparex and PC Connection

EPG Global ISV Sales Achievement
Winner: Redknee
Finalist: Jeppesen, A Boeing Company

EPG System Integrators Sales Achievement
Winner: Hewlett-Packard Company
Finalist: Dimension Data

Office 365 Sales Achievement
Winner: CDW LLC
Finalists: Adelior France and Phoenix Software Ltd.

OEM MNA Sales Achievement
Winner: Fujitsu
Finalists: Dell and Panasonic

OEM Named Sales Achievement
Winner: Trigem
Finalists: Seiko Epson and Wortmann

SMB Distribution Sales Achievement
Winner: Tech Data Europe
Finalists: ComPortal and Synnex, US

SMB RESELLER Sales Achievement
Winner: PERSPICUITY
Finalists: CCB and Palmetto Technology Group

About the Microsoft Worldwide Partner Conference

The Microsoft Worldwide Partner Conference provides Microsoft’s partner community the opportunity to interact with leaders from around the globe: innovative partners, Microsoft team members and tech visionaries. Partners have access to key marketing and business strategies, leadership, and information regarding specific customer solutions designed to help partners succeed in the marketplace. Along with informative learning opportunities covering sales, marketing, services and technology, the Worldwide Partner Conference is an ideal setting for to network with thousands of partners from across the world. Attendees come from over 150 countries and represent many of the most successful, top-tier Microsoft partners. More information can be found at http://www.digitalwpc.com.

About Microsoft

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

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers and titles were correct at time of publication, but may 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/news/contactpr.mspx.

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07.23.2014 - New Lumia 530 brings uncompromised smartphone performance under 100 euros



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REDMOND, Wash. — July 23, 2014 Microsoft Devices Group today announced the Lumia 530, the most affordable Lumia to date, delivering an uncompromised smartphone experience with the latest Microsoft and Lumia innovations. It is expected to be available for an estimated retail price of 85 euros before taxes and subsidies, beginning in August 2014.

Available in both single-SIM 3G and dual-SIM 3G variants, Lumia 530 will expand the reach of Windows Phone as the first Lumia introduced below 100 euros, allowing more people to enjoy the innovations and Microsoft services found in high-end Lumia smartphones, which includes the following:

  • The latest version of Windows Phone 8.1 including one-swipe notifications from Action Center, and the fast Word Flow keyboard

  • A powerful quad-core Qualcomm Snapdragon processor that delivers a fast user experience of favorite apps, gaming and Internet browsing on the 4-inch LCD display

  • Seamless integration with Microsoft services such as Skype and Microsoft Office, available right out of the box

  • Popular social apps such as Instagram, WhatsApp, Viber and WeChat, plus key gaming apps such as Asphalt 8, available in the Windows Phone Store.

  • The dual-SIM 3G variant for easy switching between two SIM cards, helping people manage their data costs

  • Smooth performance with signature Lumia apps such as Creative Studio and Glam Me, which help people take voice-guided selfies with the 5-megapixel rear camera

  • More content and apps with 4 GB of onboard memory, expandable with SD cards up to 128 GB, and an additional 15 GB of free cloud storage on Microsoft OneDrive that lets people sync, store, access and share files between Lumia 530 and computers, laptops and tablets

“We are moving quickly to help more people experience the uncompromised Lumia technologies, third-party apps and Microsoft services that we deliver on our flagship products,” said Jo Harlow, corporate vice president of Microsoft Devices Group. “Lumia 530 underscores our commitment to making affordable smartphones for everyone, and introducing more people to the best of Microsoft.”

Microsoft also announced the rechargeable Bang by Coloud speaker. Perfect for enjoying music with friends, Bang by Coloud is portable so people can connect multiple speakers together for a loud daisy chain of sound.

The Lumia 530 comes with changeable cover shells in bright orange, bright green, and stylish neutrals dark grey and white. The Lumia 530 will be available globally and begins rolling out in select markets in August 2014.

Tech specs summary


About Microsoft Devices

The Microsoft Devices Group includes award-winning hardware used by over a billion people around the world, including Lumia smartphones and tablets, Nokia mobile phones, Xbox hardware, Surface, Perceptive Pixel products, and accessories.

About Microsoft

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

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers and titles were correct at time of publication, but may 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/news/contactpr.mspx.

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07.22.2014 - Microsoft cloud growth drives strong fourth-quarter results



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REDMOND, Wash. — July 22, 2014 — Microsoft Corp. today announced revenue of $23.38 billion for the quarter ended June 30, 2014. Gross margin, operating income, and diluted earnings per share (“EPS”) for the quarter were $15.79 billion, $6.48 billion, and $0.55 per share, respectively.

Microsoft completed the acquisition of substantially all of the Nokia Devices and Services (“NDS”) business on April 25, 2014. Revenue and cost of revenue from the acquired business, including amortization of intangible assets, are reported in the new Phone Hardware segment. For the fourth quarter and fiscal year 2014, the results of NDS contributed revenue, gross margin, operating income, and diluted EPS of $1.99 billion, $54 million, $(692) million, and $(0.08), respectively.

“We are galvanized around our core as a productivity and platform company for the mobile-first and cloud-first world, and we are driving growth with disciplined decisions, bold innovation, and focused execution,” said Satya Nadella, chief executive officer of Microsoft. “I’m proud that our aggressive move to the cloud is paying off – our commercial cloud revenue doubled again this year to a $4.4 billion annual run rate.”

“Our solid execution and expense discipline allowed us to deliver a strong finish to the fiscal year,” said Amy Hood, executive vice president and chief financial officer at Microsoft. “As we enter fiscal 2015, we are focused on aligning our resources to strategic investments that we believe will deliver the next wave of innovation, growth, and long-term shareholder value.”

The following table reconciles these financial results reported in accordance with generally accepted accounting principles (“GAAP”) to Non-GAAP financial results. We have provided this Non-GAAP financial information to aid investors in better understanding the company’s performance. All growth comparisons relate to the corresponding period in the last fiscal year.



Additionally, we note below certain operational items that also impacted the company’s financial performance (“Noted Items”). Noted Items and the Non-GAAP measures are defined following the financial tables and highlights.



Devices and Consumer revenue grew 42% to $10.00 billion, with the following business highlights:

  • Windows OEM revenue grew 3%, driven by 11% growth in Windows OEM Pro revenue.

  • Office 365 Home and Personal subscribers totaled more than 5.6 million, adding more than 1 million subscribers again this quarter.

  • The acquired Phone Hardware business contributed $1.99 billion to current year revenue.

  • Bing search advertising revenue grew 40%, and U.S. search share grew to 19.2%.

Commercial revenue grew 11% to $13.48 billion, with the following business highlights:

  • Commercial cloud revenue grew 147% with an annualized run rate that exceeds $4.4 billion.

  • Windows volume licensing revenue grew 11%.

  • Server products revenue, including Azure, grew 16%, with double-digit growth for SQL Server and System Center.

“Our results reflect our customers’ long-term commitments to our products and services, and strong execution by our field teams. We are thrilled with the tremendous momentum of our cloud offerings with Office 365 and Azure both growing over 100% again,” said Kevin Turner, chief operating officer at Microsoft. “Looking forward, we are excited by the amazing opportunities enabled by our technology roadmap and our strong engagement across partners, customers, and developers.”

For Microsoft’s fiscal year 2014, the company’s revenue, gross margin, operating income, and diluted EPS were $86.83 billion, $59.90 billion, $27.76 billion, and $2.63 per share, respectively.

The following table reconciles these financial results reported in accordance with GAAP to Non-GAAP financial results. We have provided this Non-GAAP financial information to aid investors in better understanding the company’s performance.



The impact of Noted Items on the financial results was the same for the fourth quarter and for fiscal year 2014.

Business Outlook

Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.

On July 17, 2014, Microsoft announced a restructuring plan to streamline and simplify its operations and align the recently acquired NDS business with the company’s overall strategy. The pre-tax costs associated with this plan are estimated to be between $1.1 billion and $1.6 billion and will be recorded in fiscal year 2015, substantially in the first half of the fiscal year.

Webcast Details

Satya Nadella, chief executive officer, Amy Hood, executive vice president and chief financial officer, Frank Brod, chief accounting officer, John Seethoff, deputy general counsel, and Chris Suh, general manager of Investor Relations, will host a conference call and webcast at 2:30 p.m. PDT (5:30 p.m. EDT) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/investor/. The webcast will be available for replay through the close of business on July 22, 2015.

Adjusted Financial Results and Non-GAAP Measures

During the fourth quarter of fiscal year 2013, GAAP revenue, gross margin, operating income, and diluted EPS included the recognition of previously deferred revenue for the Office Upgrade Offer. For fiscal year 2013, the financial results included the recognition of previously deferred revenue related to the Windows Upgrade Offer as well as the European Commission Fine. These items are defined below. In addition to these financial results reported in accordance with GAAP, we have provided certain Non-GAAP financial information to aid investors in better understanding the company’s performance. Presenting these measures without the impact of these items gives additional insight into operational performance and helps clarify trends affecting the company’s business. For comparability of reporting, management considers this information in conjunction with GAAP amounts in evaluating business performance. These Non-GAAP financial measures should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

Non-GAAP Definitions

Revenue recognition of $782 million in the fourth quarter of fiscal year 2013 related to the revenue deferred on sales of the previous version of the Microsoft Office system with a guarantee to be upgraded to the new Office at minimal or no cost (“Office Upgrade Offer”).

Revenue recognition of $540 million in fiscal year 2013 related to the revenue deferred on sales of Windows 7 with an option to upgrade to Windows 8 Pro at a discounted price (“Windows Upgrade Offer”).

Fine of €561 million ($733 million) assessed by the European Commission in the third quarter of fiscal year 2013 for violation of an order to provide a browser choice screen with Internet Explorer on PCs sold in Europe (“European Commission Fine”).

Noted Items Definitions

Charge of $900 million recorded in the fourth quarter of fiscal year 2013 for Surface RT Inventory Adjustments (“Surface RT Inventory Adjustments”).

Revenue recognition of $382 million in the fourth quarter of fiscal year 2014 from the contractual relationship between Nokia and Microsoft related to joint strategic initiatives which was terminated in conjunction with the acquisition of substantially all of the NDS business (“End of Nokia Commercial Agreement”).

Expenses of $127 million in the fourth quarter of fiscal year 2014 associated with the acquisition and integration of NDS. These expenses consist of transaction fees and direct acquisition costs, including legal, finance, consulting and other professional fees. These costs also include employee compensation and termination costs associated with certain reorganization activities ("Integration and Restructuring”).

Tax provision adjustment of $458 million, or a $(0.05) per share impact, in the fourth quarter of fiscal 2014 related to adjustments to prior years’ liabilities for intercompany transfer pricing that increased taxable income in more highly taxed jurisdictions (“Adjustment to Prior Years’ Taxes”).

About Microsoft

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

Forward-Looking Statements

Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

  • intense competition in all of Microsoft’s markets;

  • increasing focus on services presents execution and competitive risks;

  • significant investments in new products and services that may not be profitable;

  • acquisitions, joint ventures, and strategic alliances may have an adverse effect on our business;

  • impairment of goodwill or amortizable intangible assets causing a significant charge to earnings;

  • Microsoft’s continued ability to protect its intellectual property rights;

  • claims that Microsoft has infringed the intellectual property rights of others;

  • the possibility of unauthorized disclosure of significant portions of Microsoft’s source code;

  • cyber-attacks and security vulnerabilities in Microsoft products that could reduce revenue or lead to liability;

  • disclosure of personal data that could cause liability and harm to Microsoft’s reputation;

  • outages, data losses, and disruptions of our online services if we fail to maintain an adequate operations infrastructure;

  • government litigation and regulation that may limit how Microsoft designs and markets its products;

  • potential liability under trade protection and anti-corruption laws resulting from our international operations;

  • Microsoft’s ability to attract and retain talented employees;

  • adverse results in legal disputes;

  • unanticipated tax liabilities;

  • our hardware and software products may experience quality or supply problems;

  • exposure to increased economic and operational uncertainties from operating a global business;

  • catastrophic events or geo-political conditions may disrupt our business; and

  • adverse economic or market conditions may harm our business.

For more information about risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations website at http://www.microsoft.com/investor/.

All information in this release is as of July 22, 2014. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

For more information, financial analysts and investors only:

Chris Suh, general manager, Investor Relations, (425) 706-4400

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news/. Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Shareholder and financial information, as well as today’s 2:30 p.m. PDT conference call with investors and analysts, is available at http://www.microsoft.com/investor/.

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07.17.2014 - Starting to Evolve Our Organization and Culture



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From: Satya Nadella
To: All Employees
Date: July 17, 2014 at 5:00 a.m. PT
Subject: Starting to Evolve Our Organization and Culture

Last week in my email to you I synthesized our strategic direction as a productivity and platform company. Having a clear focus is the start of the journey, not the end. The more difficult steps are creating the organization and culture to bring our ambitions to life. Today I’ll share more on how we’re moving forward. On July 22, during our public earnings call, I’ll share further specifics on where we are focusing our innovation investments.

The first step to building the right organization for our ambitions is to realign our workforce. With this in mind, we will begin to reduce the size of our overall workforce by up to 18,000 jobs in the next year. Of that total, our work toward synergies and strategic alignment on Nokia Devices and Services is expected to account for about 12,500 jobs, comprising both professional and factory workers. We are moving now to start reducing the first 13,000 positions, and the vast majority of employees whose jobs will be eliminated will be notified over the next six months. It’s important to note that while we are eliminating roles in some areas, we are adding roles in certain other strategic areas. My promise to you is that we will go through this process in the most thoughtful and transparent way possible. We will offer severance to all employees impacted by these changes, as well as job transition help in many locations, and everyone can expect to be treated with the respect they deserve for their contributions to this company.

Later today your Senior Leadership Team member will share more on what to expect in your organization. Our workforce reductions are mainly driven by two outcomes: work simplification as well as Nokia Devices and Services integration synergies and strategic alignment.

First, we will simplify the way we work to drive greater accountability, become more agile and move faster. As part of modernizing our engineering processes the expectations we have from each of our disciplines will change. In addition, we plan to have fewer layers of management, both top down and sideways, to accelerate the flow of information and decision making. This includes flattening organizations and increasing the span of control of people managers. In addition, our business processes and support models will be more lean and efficient with greater trust between teams. The overall result of these changes will be more productive, impactful teams across Microsoft. These changes will affect both the Microsoft workforce and our vendor staff. Each organization is starting at different points and moving at different paces.

Second, we are working to integrate the Nokia Devices and Services teams into Microsoft. We will realize the synergies to which we committed when we announced the acquisition last September. The first-party phone portfolio will align to Microsoft’s strategic direction. To win in the higher price tiers, we will focus on breakthrough innovation that expresses and enlivens Microsoft’s digital work and digital life experiences. In addition, we plan to shift select Nokia X product designs to become Lumia products running Windows. This builds on our success in the affordable smartphone space and aligns with our focus on Windows Universal Apps.

Making these decisions to change are difficult, but necessary. I want to invite you to my monthly Q&A event tomorrow. I hope you can join, and I hope you will ask any question that’s on your mind. Thank you for your support as we start to take steps forward in evolving our organization and culture.

Satya

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07.17.2014 - Stephen Elop's email to employees



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Hello there,

Microsoft’s strategy is focused on productivity and our desire to help people “do more.” As the Microsoft Devices Group, our role is to light up this strategy for people. We are the team creating the hardware that showcases the finest of Microsoft’s digital work and digital life experiences, and we will be the confluence of the best of Microsoft’s applications, operating systems and cloud services.

To align with Microsoft’s strategy, we plan to focus our efforts. Given the wide range of device experiences, we must concentrate on the areas where we can add the most value. The roots of this company and our future are in productivity and helping people get things done. Our fundamental focus – for phones, Surface, for meetings with devices like PPI, Xbox hardware and new areas of innovation -- is to build on that strength. While our direction in the majority of our teams is largely unchanging, we have had an opportunity to plan carefully about the alignment of phones within Microsoft as the transferring Nokia team continues with its integration process.

It is particularly important to recognize that the role of phones within Microsoft is different than it was within Nokia. Whereas the hardware business of phones within Nokia was an end unto itself, within Microsoft all our devices are intended to embody the finest of Microsoft’s digital work and digital life experiences, while accruing value to Microsoft’s overall strategy. Our device strategy must reflect Microsoft’s strategy and must be accomplished within an appropriate financial envelope. Therefore, we plan to make some changes.

We will be particularly focused on making the market for Windows Phone. In the near term, we plan to drive Windows Phone volume by targeting the more affordable smartphone segments, which are the fastest growing segments of the market, with Lumia. In addition to the portfolio already planned, we plan to deliver additional lower-cost Lumia devices by shifting select future Nokia X designs and products to Windows Phone devices. We expect to make this shift immediately while continuing to sell and support existing Nokia X products.

To win in the higher price segments, we will focus on delivering great breakthrough products in alignment with major milestones ahead from both the Windows team and the Applications and Services Group. We will ensure that the very best experiences and scenarios from across the company will be showcased on our products. We plan to take advantage of innovation from the Windows team, like Universal Windows Apps, to continue to enrich the Windows application ecosystem. And in the very lowest price ranges, we plan to run our first phones business for maximum efficiency with a smaller team.

We expect these changes to have an impact to our team structure. With our focus, we plan to consolidate the former Smart Devices and Mobile Phones business units into one phone business unit that is responsible for all of our phone efforts. Under the plan, the phone business unit will be led by Jo Harlow with key members from both the Smart Devices and Mobile Phones teams in the management team. This team will be responsible for the success of our Lumia products, the transition of select future Nokia X products to Lumia and for the ongoing operation of the first phone business.

As part of the effort, we plan to select the appropriate business model approach for our sales markets while continuing to offer our products in all markets with a strong focus on maintaining business continuity. We will determine each market approach based on local market dynamics, our ability to profitably deliver local variants, current Lumia momentum and the strategic importance of the market to Microsoft. This will all be balanced with our overall capability to invest.

Our phone engineering efforts are expected to be concentrated in Salo, Finland (for future, high-end Lumia products) and Tampere, Finland (for more affordable devices). We plan to develop the supporting technologies in both locations. We plan to ramp down engineering work in Oulu. While we plan to reduce the engineering in Beijing and San Diego, both sites will continue to have supporting roles, including affordable devices in Beijing and supporting specific US requirements in San Diego. Espoo and Lund are planned to continue to be focused on application software development.

We plan to right-size our manufacturing operations to align to the new strategy and take advantage of integration opportunities. We expect to focus phone production mainly in Hanoi, with some production to continue in Beijing and Dongguan. We plan to shift other Microsoft manufacturing and repair operations to Manaus and Reynosa respectively, and start a phased exit from Komaron, Hungary.

In short, we will focus on driving Lumia volume in the areas where we are already successful today in order to make the market for Windows Phone. With more speed, we will build on our success in the affordable smartphone space with new products offering more differentiation. We’ll focus on acquiring new customers in the markets where Microsoft’s services and products are most concentrated. And, we’ll continue building momentum around applications.

We plan that this would result in an estimated reduction of 12,500 factory direct and professional employees over the next year. These decisions are difficult for the team, and we plan to support departing team members with severance benefits.

More broadly across the Devices team, we will continue our efforts to bring iconic tablets to market in ways that complement our OEM partners, power the next generation of meetings & collaboration devices and thoughtfully expand Windows with new interaction models. With a set of changes already implemented earlier this year in these teams, this means there will be limited change for the Surface, Xbox hardware, PPI/meetings or next generation teams.

We recognize these planned changes are broad and have very difficult implications for many of our team members. We will work to provide as much clarity and information as possible. Today and over the coming weeks leaders across the organization will hold town halls, host information sharing sessions and provide more details on the intranet.

The team transferring from Nokia and the teams that have been part of Microsoft have each experienced a number of remarkable changes these last few years. We operate in a competitive industry that moves rapidly, and change is necessary. As difficult as some of our changes are today, this direction deliberately aligns our work with the cross company efforts that Satya has described in his recent emails. Collectively, the clarity, focus and alignment across the company, and the opportunity to deliver the results of that work into the hands of people, will allow us to increase our success in the future.

Regards,

Stephen

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07.17.2014 - Microsoft announces steps to simplify organization and align devices strategy



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REDMOND, Wash. — July 17, 2014 — Microsoft Corp. today announced a restructuring plan to simplify its organization and align the recently acquired Nokia Devices and Services business with the company’s overall strategy.

These steps will result in the elimination of up to 18,000 positions over the next year. Of the total, about 12,500 professional and factory positions will be eliminated through synergies and strategic alignment of the Nokia Devices and Services business acquired by Microsoft on April 25.

The actions associated with the plan are expected to be substantially complete by Dec. 31, 2014, and fully completed by June 30, 2015.

The company expects to incur pre-tax charges of $1.1 billion to $1.6 billion over the next four quarters, including $750 million to $800 million for severance and related benefit costs, and $350 million to $800 million of asset-related charges.

The plans were outlined in an email from Microsoft CEO Satya Nadella to Microsoft employees, and an email from Microsoft Executive Vice President Stephen Elop to Microsoft Devices Group employees. To read Nadella’s email, see http://www.microsoft.com/en-us/news/press/2014/jul14/07-17announcement1.aspx. To read Elop’s email, see http://www.microsoft.com/en-us/news/press/2014/jul14/07-17announcement2.aspx.

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

For more information, press only:

Rapid Response Team, Waggener Edstrom Communications, (503) 443-7070, rrt@waggeneredstrom.com

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers and titles were correct at time of publication, but may 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/news/contactpr.mspx.

Note about forward-looking statements. Certain statements in this press release, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in the section titled “Risk Factors” of our Forms 10-K and 10-Q. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

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07.16.2014 - MS14-030 - Important: Vulnerability in Remote Desktop Could Allow Tampering (2969259) - Version: 1.2



View Microsoft related news. Severity Rating: Important
Revision Note: V1.2 (July 16, 2014): Updated the Known Issues entry in the Knowledge Base Article section from "None" to "Yes"
Summary: This security update resolves a privately reported vulnerability in Microsoft Windows. The vulnerability could allow tampering if an attacker gains access to the same network segment as the targeted system during an active RDP session, and then sends specially crafted RDP packets to the targeted system.
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07.16.2014 - MS14-009 - Important: Vulnerabilities in .NET Framework Could Allow Elevation of Privilege - Version: 1.2



View Microsoft related news. Severity Rating: Important
Revision Note: V1.2 (July 16, 2014): Updated the Known Issues entry in the Knowledge Base Article section from "None" to "Yes".
Summary: This security update resolves two publicly disclosed vulnerabilities and one privately reported vulnerability in Microsoft .NET Framework. The most severe vulnerability could allow elevation of privilege if a user visits a specially crafted website or a website containing specially crafted web content. In all cases, however, an attacker would have no way to force users to visit such websites. Instead, an attacker would have to convince users to visit the compromised website, typically by getting them to click a link in an email message or in an Instant Messenger message that takes them to the attacker's website.
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07.16.2014 - MS14-039 - Important: Vulnerability in On-Screen Keyboard Could Allow Elevation of Privilege (2975685) - Version: 1.1



View Microsoft related news. Severity Rating: Important
Revision Note: V1.1 (July 16, 2014): Updated the Known Issues entry in the Knowledge Base Article section from "None" to "Yes".
Summary: This security update resolves a publicly disclosed vulnerability in Microsoft Windows. The vulnerability could allow elevation of privilege if an attacker uses a vulnerability in a low integrity process to execute the On-Screen Keyboard (OSK) and upload a specially crafted program to the target system.
Full View / NID: 50642 / Submitted by: The Zilla of Zuron

07.15.2014 - Microsoft recognizes top-performing partners at Microsoft Worldwide Partner Conference



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WASHINGTON July 15 , 201 4 At the Microsoft Worldwide Partner Conference (WPC) 2014 in Washington, D.C., yesterday, Microsoft Corp. (Nasdaq “MSFT”) honored its highest-performing Microsoft Dynamics partners for demonstrating exceptional levels of growth while delivering innovative solutions that have helped their customers drive their businesses forward.

“Each year, we recognize and honor a select group of Microsoft Dynamics partners from around the world for exemplary performance,” said Neil Holloway, corporate vice president, MBS Sales & Partners. “These award-winning partners inspire us by the standards they set and the impact they have on the business. Microsoft’s success is a direct result of their contribution, and it is an honor to recognize them for their achievements this past year and for their dedication and support of Microsoft Dynamics applications.”

At the pinnacle of the partners recognized, Hitachi Solutions America Ltd. was named the Microsoft Dynamics Global Outstanding Reseller of the Year, and Incadea GmbH and To-Increase BV were named the Global Outstanding ISVs of the Year. Microsoft honored 13 resellers with the 2014 Microsoft Dynamics Regional Reseller of the Year award, and nine independent software vendors (ISVs) were awarded the 2014 Microsoft Dynamics Regional ISV of the Year award. Several key criteria were considered when selecting Microsoft Dynamics Certified Partners for this special recognition, including outstanding sales performance, thorough technological expertise on Microsoft Dynamics products and services, a consistently high level of customer satisfaction, and feedback from Microsoft team members. The performance-based Microsoft Dynamics Regional Partner of the Year award recipients are as follows:

Reseller Awards

  • Microsoft Dynamics Global Outstanding Reseller of the Year: Hitachi Solutions America Ltd.

  • Microsoft Dynamics Reseller of the Year for Asia Pacific: Hands-On Management Pty Ltd.

  • Microsoft Dynamics Reseller of the Year for Canada: ADXSTUDIO Inc.

  • Microsoft Dynamics Reseller of the Year for Central and Eastern Europe: GMCS Verex

  • Microsoft Dynamics Reseller of the Year for Greater China: Shanghai Wicresoft Co. Ltd.

  • Microsoft Dynamics Reseller of the Year for France: ISATECH SASU

  • Microsoft Dynamics Reseller of the Year for Germany: KUMAvision AG

  • Microsoft Dynamics Reseller of the Year for India: Acxiom Consulting Pvt. Ltd.

  • Microsoft Dynamics Reseller of the Year for Japan: Hitachi Solutions Ltd.

  • Microsoft Dynamics Reseller of the Year for Latin America: Fesworld SA de CV

  • Microsoft Dynamics Reseller of the Year for Middle East and Africa: AccTech System

  • Microsoft Dynamics Reseller of the Year for United Kingdom: eBECS Ltd.

  • Microsoft Dynamics Reseller of the Year for United States: mcaConnect LLC

  • Microsoft Dynamics Reseller of the Year for Western Europe: HSO International

ISV Awards

  • Microsoft Dynamics Global Outstanding ISVs of the Year: Incadea GmbH and To-Increase BV

  • Microsoft Dynamics ISV of the Year for Asia Pacific: Flintfox International Ltd.

  • Microsoft Dynamics ISV of the Year for Central and Eastern Europe: LS Retail EHF

  • Microsoft Dynamics ISV of the Year for France: GFI Progiciels

  • Microsoft Dynamics ISV of the Year for Germany: GOB Software & Systeme GmbH & Co. KG

  • Microsoft Dynamics ISV of the Year for Middle East and Africa: Veripark

  • Microsoft Dynamics ISV of the Year for United Kingdom: K3 Retail Solutions Ltd.

  • Microsoft Dynamics ISV of the Year for United States: CoCentrix Inc.

  • Microsoft Dynamics ISV of the Year for Western Europe: 4PS

During the recognition ceremony, a select group of Microsoft Dynamics partners were named to the 2014 Microsoft Dynamics Inner Circle and the 2014 Microsoft Dynamics President’s Club. The Microsoft Dynamics Inner Circle represents an elite group of the most strategic Microsoft Dynamics partners from around the world, with sales achievements that rank them in the highest echelon of the Microsoft Dynamics global network of partners. These partners are recognized for their exceptional overall company performance in delivering valuable solutions to Microsoft Dynamics customers. Microsoft Dynamics President’s Club honors high-performing Microsoft Dynamics partners with a commitment to customers reflected in their business success and growth.

A list of the Microsoft WPC 2014 and Regional Partner award winners and finalists can be found online at http://www.microsoft.com/presspass/presskits/partnernetwork/docs/DynamicsPartnerAwards.pdf.

A list of the 60 2014 Microsoft Dynamics Inner Circle award winners can be found online at http://www.microsoft.com/presspass/presskits/partnernetwork/docs/DynamicsInnerCircle.pdf.

A list of the 219 2014 Microsoft Dynamics President’s Club award winners can be found online at http://www.microsoft.com/presspass/presskits/partnernetwork/docs/DynamicsPresidentsClub.pdf.

About the Microsoft Worldwide Partner Conference

The Microsoft Worldwide Partner Conference provides Microsoft’s partner community the opportunity to interact with leaders from around the globe: innovative partners, Microsoft team members and tech visionaries. Partners have access to key marketing and business strategies, leadership, and information regarding specific customer solutions designed to help partners succeed in the marketplace. Along with informative learning opportunities covering sales, marketing, services and technology, the Worldwide Partner Conference is an ideal setting for to network with thousands of partners from across the world. Attendees come from over 150 countries and represent many of the most successful, top-tier Microsoft partners. More information can be found at http://www.digitalwpc.com.

About Microsoft Dynamics

At the heart of every successful business are the people who make things happen. Microsoft Dynamics designs modern business solutions that empower individuals with intuitive tools that allow them to do their best work. Our proactive, easy-to-use business applications adapt to the way people and systems work, enabling businesses to rapidly deploy and be forward-looking in an ever-changing world.

About Microsoft

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

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers and titles were correct at time of publication, but may 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/news/contactpr.mspx.

Full View / NID: 50631 / Submitted by: The Zilla of Zuron

07.10.2014 - MS14-030 - Important: Vulnerability in Remote Desktop Could Allow Tampering (2969259) - Version: 1.1



View Microsoft related news. Severity Rating: Important
Revision Note: V1.1 (July 10, 2014): Bulletin revised to remove the prerequisite requirements for the 2965788 update on Window 7 systems. This is an informational change only. Customers who have already successfully updated their systems do not need to take any action.
Summary: This security update resolves a privately reported vulnerability in Microsoft Windows. The vulnerability could allow tampering if an attacker gains access to the same network segment as the targeted system during an active RDP session, and then sends specially crafted RDP packets to the targeted system.
Full View / NID: 50610 / Submitted by: The Zilla of Zuron

07.10.2014 - MS14-033 - Important: Vulnerability in Microsoft XML Core Services Could Allow Information Disclosure (2966061) - Version: 1.1



View Microsoft related news. Severity Rating: Important
Revision Note: V1.1 (July 10, 2014): Bulletin revised to remove the prerequisite requirement for the MSXML 6.0 update on Windows Server 2003 systems
Summary: This security update resolves a privately reported vulnerability in Microsoft Windows. The vulnerability could allow information disclosure if a logged on user visits a specially crafted website that is designed to invoke MSXML through Internet Explorer. In all cases, however, an attacker would have no way to force users to visit such websites. Instead, an attacker would have to convince users to visit a website, typically by getting them to click a link in an email message or in an Instant Messenger request that takes users to the attacker's website.
Full View / NID: 50609 / Submitted by: The Zilla of Zuron

07.08.2014 - MS14-040 - Important: Vulnerability in Ancillary Function Driver (AFD) Could Allow Elevation of Privilege (2975684) - Version: 1.0



View Microsoft related news. Severity Rating: Important
Revision Note: V1.0 (July 8, 2014): Bulletin published.
Summary: This security update resolves a privately reported vulnerability in Microsoft Windows. The vulnerability could allow elevation of privilege an attacker logs onto a system and runs a specially crafted application. An attacker must have valid logon credentials and be able to log on locally to exploit this vulnerability.
Full View / NID: 49604 / Submitted by: The Zilla of Zuron

07.08.2014 - MS14-038 - Critical: Vulnerability in Windows Journal Could Allow Remote Code Execution (2975689) - Version: 1.0



View Microsoft related news. Severity Rating: Critical
Revision Note: V1.0 (July 8, 2014): Bulletin published.
Summary: This security update resolves a privately reported vulnerability in Microsoft Windows. The vulnerability could allow remote code execution if a user opens a specially crafted Journal file. An attacker would have no way to force users to visit a specially crafted website. Instead, an attacker would have to convince them to visit the website, typically by getting them to click a link that takes them to the attacker's site, and then convince them to open the specially crafted Journal file.
Full View / NID: 49598 / Submitted by: The Zilla of Zuron

07.08.2014 - MS14-041 - Important: Vulnerability in DirectShow Could Allow Elevation of Privilege (2975681) - Version: 1.0



View Microsoft related news. Severity Rating: Important
Revision Note: V1.0 (July 8, 2014): Bulletin published
Summary: This security update resolves a privately reported vulnerability in Microsoft Windows. The vulnerability could allow elevation of privilege if an attacker first exploits another vulnerability in a low integrity process and then uses this vulnerability to execute specially crafted code in the context of the logged on user. By default, the modern, immersive browsing experience on Windows 8 and Windows 8.1 runs with Enhanced Protected Mode (EPM). For example, customers using the touch-friendly Internet Explorer 11 browser on modern Windows tablets are using Enhanced Protected Mode by default. Enhanced Protected Mode uses advanced security protections that can help mitigate against exploitation of this vulnerability on 64-bit systems.
Full View / NID: 49597 / Submitted by: The Zilla of Zuron

07.08.2014 - MS14-042 - Moderate: Vulnerability in Microsoft Service Bus Could Allow Denial of Service (2972621) - Version: 1.0



View Microsoft related news. Severity Rating: Moderate
Revision Note: V1.0 (July 8, 2014): Bulletin published
Summary: This security update resolves one publicly disclosed vulnerability in Microsoft Service Bus for Windows Server. The vulnerability could allow denial of service if a remote authenticated attacker creates and runs a program that sends a sequence of specially crafted Advanced Message Queuing Protocol (AMQP) messages to the target system. Microsoft Service Bus for Windows Server is not shipped with any Microsoft operating system. For an affected system to be vulnerable Microsoft Service Bus must first be downloaded, installed, and configured, and then its configuration details (farm certificate) shared with other users.
Full View / NID: 49596 / Submitted by: The Zilla of Zuron

07.08.2014 - MS14-039 - Important: Vulnerability in On-Screen Keyboard Could Allow Elevation of Privilege (2975685) - Version: 1.0



View Microsoft related news. Severity Rating: Important
Revision Note: V1.0 (July 8, 2014): Bulletin published.
Summary: This security update resolves a publicly disclosed vulnerability in Microsoft Windows. The vulnerability could allow elevation of privilege if an attacker uses a vulnerability in a low integrity process to execute the On-Screen Keyboard (OSK) and upload a specially crafted program to the target system.
Full View / NID: 49595 / Submitted by: The Zilla of Zuron

07.08.2014 - MS14-037 - Critical: Cumulative Security Update for Internet Explorer (2975687) - Version: 1.0



View Microsoft related news. Severity Rating: Critical
Revision Note: V1.0 (July 8, 2014): Bulletin published.
Summary: This security update resolves one publicly disclosed vulnerability and twenty-three privately reported vulnerabilities in Internet Explorer. The most severe of these vulnerabilities could allow remote code execution if a user views a specially crafted webpage using Internet Explorer. An attacker who successfully exploited these vulnerabilities could gain the same user rights as the current user. Customers whose accounts are configured to have fewer user rights on the system could be less impacted than those who operate with administrative user rights.
Full View / NID: 49594 / Submitted by: The Zilla of Zuron

06.30.2014 - MS14-018 - Critical: Cumulative Security Update for Internet Explorer (2950467) - Version: 1.2



View Microsoft related news. Severity Rating: Critical
Revision Note: V1.2 (June 30, 2014): Corrected the CVE number for CVE-2014-0325. The bulletin incorrectly had listed this CVE number as CVE-2014-0235. This is an informational change only.
Summary: This security update resolves six privately reported vulnerabilities in Internet Explorer. These vulnerabilities could allow remote code execution if a user views a specially crafted webpage using Internet Explorer. An attacker who successfully exploited these vulnerabilities could gain the same user rights as the current user. Users whose accounts are configured to have fewer user rights on the system could be less impacted than users who operate with administrative user rights.
Full View / NID: 49542 / Submitted by: The Zilla of Zuron

06.29.2014 - Schools choosing Microsoft to help bring the digital transition to life



View Microsoft-Press related news.

REDMOND, Wash. June 29, 201 4 On Sunday, at the International Society for Technology in Education (ISTE) conference, Microsoft Corp. announced that the Pasadena Independent School District (ISD) in Texas is adding to the growing momentum of schools choosing Microsoft technology and resources to help transform the student learning experience in the classroom. After a two-year pilot at schools around the district, Pasadena ISD will give students and teachers 12,900 Dell Venue 11 Pro Tablets with Windows 8.1 and Microsoft Office 365 with OneNote. A primary consideration in the district’s decision was the innovative digital inking technology available in Windows 8.1 that is brought to life with OneNote and a touchscreen device like the Dell notebook.

“There is a massive transition to digital happening across the country and around the world in education, and schools looking to prepare their students for the world beyond the classroom are empowering their students and teachers by providing devices, services, training and other elements needed for improved student outcomes,” said Margo Day, vice president of U.S. education at Microsoft. “At Microsoft, we are proud to be a partner with so many great schools that are leading the way forward for education and in preparing our youth for tomorrow’s workforce.”

After carefully evaluating its device options, Pasadena ISD concluded that the inking capabilities in Windows 8.1, combined with the power of OneNote, gave students and teachers the most engaging experience possible. The district originally looked at a Windows 7-based netbook, but when it saw how digital inking on a tablet can duplicate the pen-and-paper experience, it captured peoples’ imaginations. The district saw the possibilities for things like real-time note taking, art projects and annotations, and determined that was the best option for students.

Pasadena joins a growing list of schools around the country that have recently chosen Microsoft devices and services to help bring technology and Microsoft YouthSpark resources into the classroom to improve student outcomes and opportunities, including the following:

  • Baltimore County Public Schools (BCPS). As part of Baltimore County Public Schools’ Students & Teachers Accessing Tomorrow (S.T.A.T.) initiative, the district is rolling out 150,000 HP Elitebook 810 Revolve devices running Windows 8.1 to all students and teachers over the next four years. The initiative is aimed at fundamentally shifting teaching and learning in the district. Also, through the Microsoft Student Advantage offer, the district, which is already providing Microsoft Office to faculty and staff, will also offer the productivity suite to students at no additional cost. BCPS has developed a thoughtful approach to all the critical components to an effective one-to-one computing (1:1) initiative that also includes ongoing training for educators. Its curriculum offices are currently developing a framework and template for use in BCPS One, the new digital portal for curriculum and instruction, assessments, student data, reporting, and analysis.

  • Bureau of Indian Education: In support of President Obama’s ConnectED Initiative and to accelerate the speed at which students in Bureau of Indian Education schools in the U.S. experience the benefits of a move to digital environments, Microsoft is working with Verizon Wireless to bring 10 tribal K–12 schools to digital 1:1 environments, which will include digital textbooks, content filtering and device management. The devices provided as part of the initiative are Nokia Lumia 2520 tablets. Data plans, network build-out, and appropriate educator and student training are included in the agreement. Build out of the network and implementation will take place in the coming months.

  • Chester County School District. This South Carolina district is in a close-knit, rural community, yet the school district also wanted to ensure that its young people had a global perspective. The district worked with local Internet providers to create Wi-Fi hotspots in strategically placed locations, such as parks and libraries, and provided students with Windows 8 devices. The devices were selected based on the district’s education priorities, a long battery life and durability.

  • Cincinnati Country Day School (CCDS). One of the first schools in the nation to go 1:1 in 1996, CCDS has been on the cutting edge of the digital transition for a long time. The school is now deploying Microsoft Surface Pro 3 devices for its students in grades 5–12 and faculty. According to the school, these devices meet all three critical elements for technology in the classroom: the importance and value of reading and writing to the way students learn; the school’s focus on the creative process; and tools that are versatile enough to support a variety of projects and experiments, regardless of subject.

  • Fresno Unified School District (FUSD). The fourth-largest district in California with 75,000 students is currently rolling out 15,000 ASUS Transformer T100 devices running Windows 8.1 to third through eighth graders. The district chose the Windows platform to meet Smarter Balanced Assessment Consortium’s requirements for testing and the district’s Bring Your Own Device (BYOD) vision.

  • Houston Independent School District (HISD). The largest school district in Texas and seventh-largest in the U.S., HISD purchased Microsoft solutions to help it improve student outcomes, solve privacy concerns and amend manageability worries that plague many other education technology implementations. Microsoft Office 365 and HP Elitebook Folio 9470m Ultrabooks running Windows are helping to support HISD’s more than 14,000 students and 1,200 teachers in the first phase of its PowerUp initiative to transform how teachers teach and how students learn.

  • Leon County Schools. The Florida district has been deploying Windows 8.1 devices to its 34,000 students, allowing them to keep the business-class tools already in use today and provide maximum flexibility for both elementary and high school levels.

  • Miami-Dade County Public Schools (M-DPS). The nation’s fourth-largest school district, initiated its digital convergence project, rolling out 150,000 HP devices running Windows 8.1, with tablets for seventh-grade civics and ninth-grade world history classes, and laptops at the elementary level. In addition, more than 10,000 interactive boards will be added to classrooms across the district, and all 350,000 students will receive Microsoft Office Professional Plus for free as part of Microsoft Student Advantage. One-third of MDCPS schools will also be Microsoft IT Academy schools, receiving specific IT skills training and certification testing. Finally, the first wave of M-DPS teachers have begun training with Microsoft Expert Educators.

  • West Virginia. West Virginia Department of Education, as part of a statewide agreement is allowing all its public schools to upgrade to Windows 8.1, as well as providing Office 365 and Office 365 ProPlus to students, teachers and staff, resulting in lower costs and broader access for schools and families in the state.

This digital transition is not just happening in the U.S., but also in schools around the world where technology is empowering students. In Thailand, for example, the Office of the Basic Education Commission recently signed a memorandum of understanding that will provide all 8 million students and 400,000 teachers in the country with access to Microsoft Office 365 for Education.

About Microsoft in Education

Microsoft is deeply committed to working with governments, communities, schools and educators to use the power of information technology to deliver technology, services and programs that provide anytime, anywhere learning for all. Since 2003, Microsoft has partnered with educators to impact more than 207 million students in 119 countries. Through TEACH.Org, Microsoft and other partners, candidates are provided with free access to the online tools and resources necessary to pursue a career in teaching. For more information: http://www.microsoft.com/education.

About Microsoft

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

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers and titles were correct at time of publication, but may 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/news/contactpr.mspx.

Full View / NID: 49535 / Submitted by: The Zilla of Zuron
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