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BARCELONA -- Microsoft fleshed out its road map for transitioning customers to 64-bit computing and unveiled updates to several of its management and server products at its IT Forum 2005 conference in Barcelona today.

The server version of Microsoft's Longhorn operating system will come in both 32-bit and 64-bit versions, but Release 2 of Longhorn, scheduled for 2009, will be 64-bit only, said Bob Muglia, senior vice president of Microsoft's Servers and Tools Business, in a speech at the conference.

Another product currently dubbed Centro--a set of server software aimed at midsize businesses--will also be available in only a 64-bit version when it comes out around 2007. The Longhorn version of Small Business Server will also be 64-bit only, Muglia said.

Microsoft is working with the industry to transition to 64-bit computing, according to Muglia. "We are on the verge of a major platform transition in the server marketplace," he said.

Goal: Reduce IT Systems Cost, Complexity

Muglia and Jeff Raikes, president of the company's Business Division, tag teamed a 90-minute presentation at the conference, expanding on the company's stated goals to reduce the cost and complexity of IT systems.

Raikes also previewed Office 12, the code name for the company's next major release of its productivity suite. The first beta of Office 12 will be released next week, Raikes said, followed by a larger beta release in the second quarter of 2006. The official launch is scheduled for next fall, which typically means around October.

Muglia's speech heralded two products, both of which are interim upgrades: Windows Server 2003 R2 and Virtual Server 2005 R2. Virtual Server 2005 R2 has gone to manufacturing and will be released in December. Windows Server 2003 R2 will be released to manufacturing before the end of the year and available early next year.

In August, Microsoft renamed Virtual Server 2005 Service Pack 1 to Virtual Server 2005 R2. Virtual server technology allows multiple operating systems to run on one physical machine with a single host operating system. Microsoft has been eager to catch up in this area with competitors such as VM Ware.

New Pricing for Virtual Server 2005 R2

Microsoft has priced the Standard Edition of Virtual Server 2005 R2 at $99, Muglia said. It was previously $499.

Windows Server 2003 R2 builds on Windows Server 2003 SP1, which was released in March. It's intended as a gap filler until the release of the Windows Longhorn server, scheduled for 2007. It adds features such as the Active Directory federation services and new replication technology so only changes move along the network, and incorporates the company's .Net framework.

Muglia reiterated the company's intent to alter its licensing model from one focused solely on software installs, which he said no longer makes sense in a virtualized environment. For the Enterprise Edition of Virtual Server 2005 R2, "your license applies to a device," Muglia said. Microsoft has reduced the price for that from $999 to $199. The new pricing takes effect December 1.

The company also recently changed the licensing for Windows Server. Now, for example, those who are running Virtual Server 2005 R2 can run four virtual instances of Windows Server at no additional license cost.

Two Version of Virtual Server

Virtual Sever 2005 R2 will ship in both 32-bit and 64-bit versions, Muglia said. Also, the software code-named Exchange Server 12 will ship only in a 64-bit version, as messaging services can take advantage of the addressable memory available with 64-bit computing, he said.

Microsoft had already shipped a 64-bit version of Windows Server 2003 for x86-type processors earlier this year, and recently released a 64-bit version of its SQL Server 2005.

With its 64-bit server software, Microsoft will not allow patching of the OS kernel, eliminating what has proven to be a vexing problem with the emergence of rootkits. "We've eliminated a whole major attack vector with the worst kind of virus that exists," Muglia said.

The company also previewed Microsoft Operations Manager version 3, an update to Microsoft Operations Manager 2005. That software enables system administrators to monitor servers. The new version can also troubleshoot applications and services across a network.