Microsoft: Bridging the Product Gap

"Both of those together are really a continuation of Microsoft's [.Net] development platform and could boost growth in the Server and Tools business segment," Rosoff said. He expects the bulk of Microsoft's near-term growth to come from that Server and Tools segment, which includes not only the database and developer tools but also Microsoft Windows server software.

The Server and Tools segment posted an impressive 18.9% jump in sales in the September-ending quarter.

Ursillo estimates SQL sales still only account for a small percentage of Microsoft's overall revenue -- somewhere in the low-single-digit percentages -- but "it's growing faster than the overall company."

At the same time, rival Oracle(ORCL) is attracting attention with its competing database's focus on grid computing and the Linux platform, Ursillo added. That puts more pressure on Microsoft to introduce "something fresh," he said.

Sherlund also highlighted the potential significance of the new database and developer tools. "These products will not drive big revenues compared to the twin engines of Windows and Office, but may help a bit in bridging the gap until the new Windows and Office are released," he wrote.

And such a bridge may just be enough to satisfy Microsoft investors until Microsoft revs up again in 2006.

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