Microsoft might not be the global leader of innovation but it is without a doubt the global leader of spending on innovation. In 2007 alone, the amount of money Microsoft is pouring into its research and development efforts far outweigh the total costs of producing the Windows Vista platform. Vista was built via the best $6 billion Microsoft's Co-founder and chairman Bill Gates ever spent, as he very well put it. At the end of the past week, Kevin Turner, Microsoft's Chief Operating Officer, revealed that the total spending of the company on research and development would total over $7 billion by the end of 2007. Of course that the largest volume of this figure is dedicated to the company's flagship products, that are - coincidentally also - Microsoft's main cash cows.

"When you look at innovation, this year we're going to invest 7-plus billion dollars in research and development this year alone, US$7 billion, more than any technology company in the world. We're going to invest it in about four different areas. The first area that we're going to invest it in is the first pillar, it's the pillar that built Microsoft, that's where Windows Vista lives, where's where the 2007 Office system lives, that's where our client-based, PC-based software is. And it's important to us, we're going to continue to invest in it and continue to grow that", Turner stated.

In addition to its Windows desktop client and the Office productivity suite, Microsoft is also focusing on the server and business application area. By investing on the server-side, the Redmond company is establishing a strong footprint outside the PC business. At this point in time, the Windows operating system dominates both the desktop and the server markets, with a stronger competition in the latter from UNIX and Linux platforms.

"The third area, entertainment and devices, that's where Xbox is, that's where Zune is, that's where Microsoft TV is, Windows Mobile, the mobility server that I talked about. You may not know that Windows Mobile runs on Blackjack, Q, a lot of the smart phones that you can buy today run Windows Mobile. And we sold more Windows Mobile units than BlackBerry for the first time, and so we're beginning to really get traction in that space and learn a lot about the mobility space. But, quite frankly, this is a pillar that we've invested in for a long, long time", Turner added.