"Microsoft's R&D budget ... is focused on making 'Longhorn' real, and all the milestones that get us to that point."

"And so unless we show that with software we can reduce those problems, make them not be significant problems, we won't be able to drive forward. So in a sense you can think of those as headwinds."

"So breaking down the boundaries ... between different devices... and meeting these high expectations on the fundamentals, will drive us forward."
 

"I mentioned security as a very key element ... and the theme that Microsoft is using to show how this is a critical area for our entire industry is Trustworthy Computing."

"Steve Ballmer [recently] laid out a roadmap that talked about the things we're doing even in the very short run to change security vulnerabilities."

"And then on the server ... we'll beta that in the first half of next year."
 

"Hardware innovation is one of the positive factors that drive us towards the new wave."

"Activities like listening to music, organizing your photos, annotating those, sharing them, buying products, all of these things will be dramatically driven by software in a way that they were not at the start of the decade."

"So it's [all] going to come together in 'Longhorn.' This is our next major [Windows] release ... We're at the beginning of this process. We're opening it up to you, showing you what we're thinking, because we need your involvement to get this right."
 

"We have three different waves of software over the years ahead. We have the software that's out now ... You'll hear a lot about the wave that includes the next generation of SQL Server and Visual Studio, and then, of course, most of what this event is about is 'Longhorn.'"