Software as a service is something Microsoft wanted to pretend wasn't ever going to happen. The problem they have is that customers want it. Now more and more of the Microsoft franchise is being encroached upon, and not by a bunch of pimply kids like it was in the early Internet days, but by a company with a 100 billion market cap.
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Fusion is not expected to be done until 2008, and then customers will evaluate the software through 2010. They're taking a wait-and-see approach.
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