Turner, Microsoft's chief operating officer, complains about the hype around software as a service (SaaS), likening it to other trends that target IT but fizzle. "We've seen that movie before," he grumbles.

But that's SaaS. S+S is a different story. During a day-long briefing at Microsoft headquarters here on "software + services" (the local parlance for SaaS), Tim O'Brien, senior director of platform strategy, acknowledged that "this business is huge." And even Turner says, "We're going to lead in this area."

So, is Microsoft just trying to exchange an established acronym for a new one? No, say the execs; it wants to radically alter the way IT acquires, deploys and manages software.

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Microsoft, SasS, S+S