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5 New Microsoft Rumors


Microsoft might not have much luck in the mobile market, but it is still the biggest name around when it comes to software.

MINYANVILLE ORIGINAL Although things don't look good in the mobile market for Microsoft (NASDAQ: MSFT), the company hasn't hung its head in defeat. The software giant is still making major moves in the tech industry to expand its role and acquire key positions for the next round. Here's the vital info on Microsoft's expected plans and partnerships.

1. Microsoft partners with RIM on file system technology.
As both the Windows phone and the BlackBerry (NASDAQ: RIMM) are failing to gain market share over Apple's (NASDAQ: AAPL) iPhone and Google's (NASDAQ: GOOG) Android, it makes sense that the two would join forces against their rivals. Recently, Microsoft has announced a patent agreement that will allow Research In Motion to use Microsoft's file system technology in the next generation of BlackBerries.

The phones will still use BlackBerry's operating system. But with Microsoft's help, the next BlackBerries should be able to handle much larger files, enabling customers to make use of a larger range of multimedia applications for watching videos and recording clips. The financial terms of the agreement have not been revealed, nor have the release dates for RIM's next BlackBerry models, but both companies remain optimistic that the deal will help stir a change within the mobile market.

2. Microsoft re-brands Bing's AdCenter.
Microsoft has just improved Bing's AdCenter to capitalize on the success of the "Bing it On" challenge. The changes include a new Web interface, improved ad controls, and tools that empower agencies to manage multiple client accounts. Microsoft hopes that its efforts will encourage users to frequent Bing more and aid it in its quest to increase market share.

Although Google still has a whooping 66% domination of the market, reports from comScore claim that Bing is continuing to show growth in the market. Several consumers have claimed that it is Bing's design that is holding it back, so Microsoft's re-branding of the AdCenter is likely a step in the right direction.
3. Microsoft names new Entertainment and Digital Media President.
Yesterday, Microsoft announced that former president of CBS Network Television and Entertainment Group, Nancy Tellem, has assumed the role of the company's Entertainment and Digital Media President. Tellem will be tasked with overseeing the newly created production studio in Los Angeles that will develop interactive and linear content for the Xbox and other devices. In recent years, the Xbox has turned into a platform for more than just video games; it can now handle a roster of more than 65 entertainment apps, including Netflix (NASDAQ: NFLX), Hulu Plus, HBO GO, MLB.TV, ESPN, YouTube, and VEVO. With Tellem's addition, Microsoft is hoping that the Xbox will move closer to becoming the major destination for consumer home entertainment in just a few years.

4. Microsoft may defer up to $140 million in 1Q revenue.
Microsoft is expected to defer up to $140 million in revenue in its first fiscal quarter due to the company's promotion of its Office 365 cloud service. After October 19, customers who buy Office 2010 or Office for Mac 2011 can receive a year of Office 365 Home Premium for free. The deferred revenue is related to licenses that will eventually be sold to end customers through distribution channels after the promotion ends. Microsoft is counting on consumer demand for Office while it transitions to its cloud services and its upcoming Windows 8 operating system.
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