Hi, Jim.

>It stated that a Microsoft executive (yet they gave to title so its hard to be sure) named Orlando Ayala was interviewed and said that MS would be spending $2 billion per year over 5 years on R&D for the small/medium business market.
>
>Mr. Ayala is claimed to have stated that there are 40 million such businesses in the world.
>
>The bubble was burst a bit further down the article though when it was said that the target was companies with "2,000 to 5,000 employees, or maybe up to 8,000".

I think that either the reporter or Orlando made a mistake with these numbers. I have seeing lately that the press is every time less carefull about mathematics. As you stated, those amounts doesn't add up.

Anyway, what the article is referring to, although it isn't clear at all, is the Microsoft strategy for entering the ERP market. As usual, they would penetrate the lower end first, which has less requirements, and where volume sales can produce hefty profits.

What we will witness in the next few years is how they consolidate a new line of products based on their aquisitions of Great Plains, Solomon Software, and Navision. It is supossed they will rebuild a series of products (most probably adapted to run over the .NET framework and other MS-centric technologies) to aim small and medium companies.

Of course, this means that they'll be entering the territory of many of us, and so, we will have to adapt a bit our business models. This can be seen as a threat or as an opportunity. But we can't ignore it, for sure.

Regards,