SOFTWARE FLOGGER Microsoft said that it plans to spend $9.5 billion on research and development this year.
Kevin Turner, Microsoft's chief operating officer, gave a keynote speech at the CeBIT trade show in Hannover, Germany and said this figure is $3 billion more than the next closest technology company. He said that in light of the difficult macroeconomic times that we're coming out of, the Vole chose to double down on innovation.
After rattling on about cloud computing being the next big thing, Turner defended the company's forthcoming Windows Phone 7 Series operating system, which he said is a complete overhaul from previous ones and is tightly integrated with other Microsoft products.
It looks like the Vole wants to integrate Windows Phone 7 so that it works well with its X-box gaming and Zune music products. If it manages to do this as well as seamlessly integrate it with Windows 7 on the PC, then it might actually knock the socks off rivals in the market who do not connect to its operating system.
Microsoft has always had high R&D spending. Last year it angered shareholders by allocating a 20 per cent increase to the division. Then most of the money was spent on interfaces and error reporting. µ