The applications business continues to stumble and this quarter shows that. Oracle doesn't have the best applications products. That's why they want to buy PeopleSoft.

Everything has gone against Oracle. This is almost the final straw.

Oracle continues to be a margin expansion story and we expect that trend to continue this quarter. We expect the increased operating leverage to come in the form of lower sales and marketing expenses.

Xbox does have a material impact for Microsoft in the December quarter because of the holiday shopping season. The fact it was capacity constrained in December will probably create some headwinds for their overall quarter.

We have to wait another quarter to see if it continues.

The server business did really well. There are good things going on ahead of Longhorn.