Microsoft Corp.'s (NASDAQ: MSFT) Windows 7 operating system was released last week to great reviews -- unlike the company's previous effort, Vista. But what most analysts may not realize is that this is not just another "point and click" effort for Microsoft -- the company wants computer users to get used to touchscreens instead of keyboards and mice. Windows 7 was built with this in mind, although most don't realize it.

This definitely caught me by surprise. Microsoft (NASDAQ: MSFT), up over 6% (as of this writing) on first-quarter results, with huge volume backing the surge. On a Friday. Really?

Believe it, because it's true. Net sales may have declined 14%, and diluted earnings per share, which came in at 40 cents, may have also dipped 17%, but it didn't matter. According to Reuters, the bottom line beat the estimate of 32 cents by a wide margin. Also, it was reported that the top line went beyond the expected number. This was probably even more important than the profit performance. In addition, cash from operations experienced a super boost.

Microsoft Corp. (NASDAQ: MSFT) CEO Steve Ballmer has indicated that the October 22 release of the Windows 7 operating system won't increase PC sales significantly. That's quite a statement from the CEO of the world's most influential software company on a new flagship piece of software that is said to be a truly shining product.

Why would the release of Windows 7 and its inclusion on millions of new PCs not increase sales? Ballmer's stated that "There will be a surge of PCs but it will probably not be huge," but it isn't really telling. Microsoft's bottom line will rely heavily on sales of its upcoming Windows 7 software -- and if PC sales don't pick up, how will Windows 7 sales fare? Microsoft licenses its software to PC makers, so it's not directly tied to retail and wholesale PC sales. Still, indirectly they're joined at the hip.

This morning Microsoft (NASDAQ:MSFT) coerced me into finally upgrading to Internet Explorer 8, and now my Google Mail is scrambled. So forgive me if I feel ambivalent about the strong response the company is experiencing to the 50% -off-retail deal it is currently offering on the next great OS, Windows 7.

According to InformationWeek, retailers such as Amazon (NASDAQ:AMZN) are experiencing brisk business for the new software, which is due for official release on October 22nd . The special deal, which began today and ends on July 11th, will drop the price of Windows 7 Professional to under $100, while the Home Premium Upgrade will run $49. Amazon is offering free release-date delivery, as well.

Microsoft Corporation (NASDAQ: MSFT) took many of the chin when it released Windows Vista over two years ago when it received as many panning reviews as possible for the world's largest software company. Since then, the software behemoth has been planning a Vista successor that is leaner, safer, and doesn't require the latest PC to provide optimum performance.

That being said, the rumor is that the new Windows 7 will be available for sale and on new PCs sometime at the beginning of 2010. According to one of Microsoft's chief Windows engineering leads, the world could see Windows 7 sometime this summer.

If imitation is the sincerest form of flattery, Microsoft (NASDAQ: MSFT) must love Apple's (NASDAQ: AAPL) chain of retail stores. But, will it help Redmond to have stores of its own?

Setting up a Microsoft store is probably going to be difficult. Apple has a fairly limited number of products. Will Microsoft have its Xbox in the stores? How about its Zune of PCs running the new Windows 7 OS? Will it display business software for servers?

According to Reuters "Microsoft Corp announced plans Thursday to open its own chain of branded stores as it looks to catch up with rival Apple Inc's successful move into retailing."

Microsoft Corp. (NASDAQ: MSFT) has finally made its Windows 7 operating system available for anybody to download, install and test. The beta release of its flagship software went public over the past weekend to generally good reviews. As Windows Vista seems to have a very negative perception in the market (even with hundreds of millions sold with new PCs), the company's marketing efforts centered around Vista's January 2007 release fell flat.

Vista was almost instantly regarded as too slow, too intensive for all but the latest PC technology and its constant pop-up warnings were seen as a huge annoyance. In other words, all the security concerns addressed in Vista -- probably its biggest feature -- were constantly being figuratively spray-painted on customers faces every day. With Windows 7 -- which looks and feels much like Vista -- Microsoft has made extreme advances in speed and responsiveness while making the overall environment easier to navigate and use.

Customers don't need to have the latest and greatest PC to run Microsoft's arguably best operating system ever. But still one question remains -- how on earth does Microsoft advertise and market Windows 7 -- when it is released -- to assuage Vista-like fears? Customers don't easily forget, and even though Windows 7 just made a significant milestone with a beta software release anyone can download and use, the bigger challenge will be regaining the trust of the computing world once Windows 7 is released. That's probably a harder job than the work required by thousands of software engineers to create the operating system itself.

Microsoft Corporation (NASDAQ: MSFT) has unveiled the next version of its Windows operating system. The marketing name "Vista" is gone and there apparently is no word to replace it. From all indications, the next version of Windows will be called "Windows 7."

Perhaps Microsoft thinks that the lucky number 7 will save it from the tarnish Windows Vista has left behind on the image of Windows. Although the software giant touted Windows Vista as the most secure and user-friendly version of Windows yet, consumers did not embrace it. Through Microsoft's dominance with PC makers, Windows Vista has still continued to be a huge success, shipping on almost all new PCs. Businesses, though, certainly did not welcome Windows Vista readily. Will Windows 7 be any different?

Using the version number (this Windows is actually version 7), instead of some name, may help Microsoft differentiate it from other operating systems, while reinforcing that there have been six versions of Windows before this new one (hence, it's a tried-and-true product). No release date has been given for Windows 7. Here's a prediction: Microsoft will see Windows 7 as a non-event (as far as initial release) unless it steps up its marketing game soon. If it addresses the perception issues of software crashes, video and audio handling and speed without the latest hardware, Windows 7 may have a chance.