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Charles Stevens, Corporate VP, Enterprise Storage Division, Microsoft Corp.: Page 7 of 16

We've grown a lot, I think, because there's lots of different offerings from OEMs... We help consolidate Windows, but we also consolidate servers under Novell [Netware] and Unix. Customers save a lot of money on hardware and storage management – that's our value proposition on the low end and midrange.

There's a huge installed base of dedicated servers that just run file and print. A Windows Storage Server-based product that consolidates those functions is a very good value proposition. There are a lot of old Novell file servers and NT file servers and even Unix that we will get consolidated over the next couple of years.

At the high end [of the NAS market], it's all about integration with SANs, clustering, etc. Through the likes of EMC, HP, and Dell we have a compelling offering against NetApp.

Byte and Switch: What are Microsoft's priorities in the storage networking market?

Stevens: In the next year, we are going to do a lot of things in Windows storage, almost anything in Windows Server file and print will be integrated. We have to push up more into the high end and more into the low end. In the high end, we have to keep supporting more nodes and clusters and better integration. On the low end, it's all about price and convenience.