"Today's business software doesn't look enough like today's businesses," says Microsoft CEO Steve Ballmer. With that in mind, Redmond has unveiled a new platform designed specifically for midsize companies, which combines the next-generation Windows Server with Exchange and new management tools.

The midsize, or midmarket, segment is defined as organizations with between 25 and 500 PCs. Software companies have often ignored this market, instead building products designed for large enterprises or small businesses. But the number of midsized companies is rapidly growing, while IT options remain limited.

Centro is being built to tackle the problems associated with the midmarket: limited budgets, overextended IT staff and short-term investment thinking, says Steven VanRoekel, director of midsize business solutions strategy at Microsoft. "All these factors conspire to make the midsize business segment a challenge for IT."

"Microsoft has long ignored the needs of medium businesses, treating them like a middle child. Microsoft favored large businesses, the firstborn, and smaller businesses, the younglings, with best pricing and products," says Jupiter Research senior analyst Joe Wilcox.

By combining complicated and often expensive technologies into a single solution, Microsoft hopes to remedy that "middle child" problem with Centro. Along with e-mail and simple management tools, Centro will include integrated security technologies such as the next release of ISA Server and System Center for easing the deployment of patches.

Wizards will also aid in simplifying mundane tasks such as adding users. "Basically, things that take hours, if not days, today, we’re going to take down to being very simple and easy to use in this integrated solution," says VanRoekel.

Centro will likely ship in 2007, soon after the debut of Windows Server "Longhorn." The package will be available from OEMs and sold as a boxed solution that runs on between two and three servers. VanRoekel says Centro will be offered at a "very attractive price."

Microsoft's other midsized business products, meanwhile, are also getting a makeover. The company's previously disparate CRM, Great Plains and Axapta solutions will now fall under the "Dynamics" umbrella.

"The rebranding is a good move, and it finally asserts Microsoft ownership over products acquired from buying other companies. Nomenclature is now simpler. Technically, Great Plains former name was Microsoft Business Solutions-Great Plains. Microsoft Dynamic GL is better," notes Wilcox.

The change comes as part of "Project Green" - an effort by Microsoft to package its business software into integrated solutions atop Windows Server. In turn, the company can sell more server software by adding desktop features such as improved management tools.

"Microsoft recognizes the importance of servers as smaller businesses expand. SMBs with servers tend to buy more software in other categories than those shops without servers," says Wilcox. "This phenomenon is another reason for Centro."