what -- you're paying microsoft. this will be hosted in microsoft's data centers? >> correct. it will be hosted in microsoft's data questions. you mentioned the i. -- the press released a host exchange online. i wonder what kind of aspects we'll be using and how that will work? >> sure. i can talk about a little bit and then microsoft can talk about their strategic -- when we signed the contract for the city, it was initially envisioned that we would have a replacement for our existing email system so this initial contract is really for email services and arkifing the services. -- archiving the services which we're paying microsoft. the benefit we see working with microsoft is that we have the option in the future to start looking at additional consolidation opportunities like share point, like instant messaging. like video conferencing and other things that we're very interested in the city that we haven't yet deployed but this creates for us the foundation, the core of the system that we could expand in the future when we get done with the email migration to provide enhanced

what do you think microsoft can do? >> well, any time you're challenged by -- you're coming from behind on a platform, again, you have to meet the capabilities and then have some things that are persuasive to get people to switch because people won't switch unless something is dramatically better. take -- you know, look at the example of google. there was a time, i don't know, there must have been five or other search engines and then they came up with something better. and so to really take back huge chunks of market share you got to meet and beat, and that's -- and that requires, you know, shorter development cycles, maybe. your best people, agility, and focus. a lot of focus. >> i mean, you've said steve ballmer has one of the toughest jobs in the world right now. if you could give him what advice, like what would it be? >> oh, i've given them advice. [laughter] >> such as? >> those are private conversations. >> oh, but it's okay, we're friends. it's cool. >> i thought c-span was here. >> no, no. they're not here. it

what can microsoft do? >> anytime you're challenged when you're coming behind, you have to need the capability command map things persuasive to get people to switch because people won't switch him a something astronomically better. forget the example of google. there is a time when there must've been five other search engines. and then they came up with something better. so to really take a huge chunk, you've got to meet one that requires shorter development cycles, maybe, your best people, and agility and autofocus. >> you said steve ballmer has one of the toughest jobs in the world right now. if you could give them advice, what would it be? >> well, i've given him advice. >> such as? >> some of those are private conversations. >> it's okay. we're friends. >> i thought c-span is here. >> no, no, they're not here. i'm curious, what was the advice? >> just the kinds of things we've been talking about. what areas to improve some of these products products tablets. >> yeah, where's microsoft from the tablet? w

you take microsoft's investment in you. you possibly may get a laptop, but you also may earn some scholarships here. that no longer means you just getting money. it also means people believe in you. they actually put their faith that you are going to succeed. what i thought about that for a moment, i decided to do it because it was not just for me anymore but all the people who believe that i will succeed. i will do it for them and if i can believe in myself and do it, other people can as well. with the help with the school district, with microsoft working with us, with the educational fund, and beyond 12 and the nonprofit we have to identify things that other people have said, years ago, the kind of prevented them from being successful. we have that all here. we have been identifying it to make it easier so you do not have to deal with it the first time. you can ask what is going to happen, how you cope with it, and how you get around stuff that will be in your way so you can be successful and show other people their inves

pace for microsoft. >> i think it keeps pace. they sold 8 million kinects before the end of the year, 2 million after. that slowed down a little bit this is keeping pace. >> tom: we appreciate the update from san francisco tonight. it's lance ulanoff, veteran chief of pcmag.com. note, more red on the screen and >> tom: week begins on a weak note, more red on the screen and selling in latin america. the june weakness for stocks continues with the major indices continuing their sell-off. pull out and let's start our focus on the past 90 sessions of the s&p 500 index. here it is, last three months plus. with today's drop, we're down about 4% from the last day in may. the index still has about 30 points to go before it retests its march low. financial stocks were among the weakest today, and bank of america led the losers inside the dow industrials. b. of a. sank another 4%. look at this move lower. the selling has picked up this month, pushing the stock down to a new 52-week low. let's roll that out. in fact, this is b. of a.'s lowe

we want to bring up the western regional general manager for microsoft. thank you so much. [applause] >> i could not be more honored or excited to be able to represent microsoft at this event. it is so important. and this is one of the most exciting parts of my job. today, we are partnering with the san francisco unified school district, the sanford cisco education fund to help provide new tools for college-bound students -- the san francisco education fund. today, we are donating $5,000 of software and $15,000 in cash that will be used to purchase these fantastic laptops you see so the students that will be attending and are enrolled in the bridge to success program for the summer. [applause] destination really demonstrates microsoft's-ticket -- dedication to focusing on allowing use this to improving your learning outcomes through the effective use of technology in your learning and also to gain access to all that dynamic digital information that is truly essential for you to be successful in your careers and be a lifelong learner. with that, we would like to make sure th

balto worked on the microsoft case, but believes google is different. microsoft used it's monopoly power to shut out competitors. balto says google doesn't. but if regulators do want to restrain google, balto says they will run into the same problem they had with microsoft: government lawyers aren't software engineers. >> consumers will be worse off if there is a national nanny second-guessing google's decisions on how it operates search. >> reporter: balto argues google also protects consumers from scammers and online frauds that try to manipulate search results. but competitors charge google also has the ability to put them out of business if their results don't show up here. darren gersh, "nightly business report," washington. >> tom: banks trying to avoid tougher regulations suffer amnesia. that's the last assessment from one of the chief banking watchdogs. sheila bair gave her final speech as f.d.i.c. chairman today. bair played a key role in regulating banks during the financial crisis. as she leaves, bair fired back at bankers who argue requiring

microsoft c.e.o. steve ballmer thinks office 365 will help people work in new ways. >> we believe that effective collaboration is a lot more than good group dynamics. it's a matter of instant access to relevant information, of ideas flowing freely, and of the right people taking the right action at the right time. >> susie: the launch comes as rival google has chipped away at microsoft's dominance in business software. 30 million people are now using its google docs application. still, microsoft dominates the productivity software market, with nine out of ten business computers running office. >> susie: tom, microsoft gained ground on today's news, rising 65 cents, or 2.5% to $25.80. let's take a look at tonight's market focus. traders call it a "risk on" day- traders call it a "risk on" day- - stocks and commodities up, the dollar drops and bonds fall. confidence that europe will successfully address the greek i.o.u. problem helped the major stock indices put up their second day of 1% gains. with the

we're very pleased to announce that we signed a contract with microsoft. over the next 12 months we'll be rolling out the entire city on the microsoft platform, a new email system will be in place for all of the employees, state of the art. we're very excited about this opportunity. we're excited not just about the email but what it means for the future of the city, where we're going for the next five years. as many of you tomorrow we'll be released our first five-year strategic i.t. plan for the city. this is one of the key projects, one of really the key initiatives that we're focusing on the city to demonstrate where we want to go over the next five years. and we want to thank gail and microsoft for being here today and talking a little bit about this project. gail, if you want to talk a little bit. >> thank you very much to john. i'm hoping everyone can hear us ok on the other side. thanks so much for joining us as well. and i just want to really say thank you to john and his entire team here in the city and county of san francisco for this partnership

with the microsoft security solution as it related with the certifications they have and the fact they have clients if not as high or higher security requirements than the city does. it gives us a level of comfort that it gives us with solutions that we can rely on a security standpoint. again, back to the partnership, i know the outage is seen as a negative thing. we know we have a partner when we need to deal with security incidents, when we have questions about security, we have a trusted partner that has a record of being proactive and we can rely on them to work with us. >> it's designed from the ground up with security and privacy needs of our customers. as john mentioned, we're provisioning for, you know, health organizations, financial organizations. you know, i think of glaxosmithkline and jpmorgan chase and those that have stringent security issues. again, microsoft has programs in terms of the government security program where we proactively share security information with our governments around the united states here. so it is paramount to us. it's a piller of our organizat

now, he was given a little dig to microsoft because they were not included. and i asked one of the microsoft officials we interviewed at the conference the next morning and i said how did it feel to be left out of the gang of four. and he said anything called the gangf four dowrcht end well. >> steve jobs who reads what you say, watches you on television, where does he see the world going? >> he doesn't sre all of his vision with me or all ofis crets. >> because he's the most competitive person you know. >> and it has served him pretty well for the most part. but i think -- honestly, in the private conversations i he had with him, he says -- theeneral things he says are similar to what he ys in public. he does think we're in a post pc world. the mac is actually growing quite healthilly right now. >> but it's percentage of the market is -- >> yeah. i think he sees the world like a lot of these other companies eric schmidt mentioned see the world by is things will be out on the internet, either your data or your apps and you're going to get these sleek powerful

. >>> plus, the big launch from microsoft coming up tomorrow. that's all in your business news, straight ahead. >>> and another week getting under way in the casey anthony trial. the question is, just whose side is her family really on? >>> asian markets are mostly down today, this time amid worries about the state of banks in italy. tokyo's nikkei average lost 100 points today. in london, the ftse opened higher. on wall street, the dow lost 69 points last week and the nasdaq index gained 36 points. >>> microsoft office 365 launches tomorrow. providing a virtual environment for various devices to store and share software. 90% of workplace computers use versions of microsoft office. the company needs at least some of those users to switch to this new version in order for this product to succece. >>> the obama administration wants automakers to double their fuel efficiency. thth administration may require automakers to raise their fuel economy to 56 miles a gallon by 2025. >>> natural gas wells, in the marcellus shale, concerns that it might threa

. >>> plus, the latest entertainment from microsoft. we will tell you what's happening to the x-box. you are watching "good morning maryland" first and only at #:30 -- 4:30. >>> now "good morning maryland" at 4:30. >>> it's been hot, hot, hot here in baltimore with temperatures expected into the 90s again this week. lynette you are going to she is smiling and laughing. part of the sierra nevada didn't get the member o. look at this mess -- memo. look at this mess in kingville, california. snow coming down so hard, drivers stopped and put the chains on the tires in june a snowstorm late this year is unusual even for this mountainous area of the u.s. >>> now maryland's most powerful doppler radar and forecast certified most accurate by weatherate. >> i am thankful we are not getting the mess california is getting. take the 9 -- i will take the 90s instead of that. that's what we are going to get today. 90 is what i am forecasting. right now, not picking up on anything. all five sweeps are scanning the skies. the temperatures bel air eleme

>> it's a big deal because google is going after microsoft with this.hey think that businesses are going to start adopting these. they don't need to store things own hundreds of thousands of different computers for each user, that everything can be stored remotely on google servers so that you can access all of your business applications no matter where you are. >> why wouldn't i just get a tablet, though? >> that's a great question. tablets do the same thing. they connect to the web. you can put apps on them, that sort of thing. tablets are great for productivity and that's why google aiming at the business community. you can as a consumer buy this. it's expensive. $350 to $500 for one of these and for that you can get a full microsoft windows 7 pc. >> reporter: what about a work er? a worker who may already be pretty married to their tablet going to say, oh, okay, yes, it's more productive. are they going to buy that argument? >> this has a keyboard which is great. anyone who has tried to type on a tablet knows it can be difficult. what's great that t

sony's move motion controller. >>> microsoft has announced its latest version of the xbox.the xbox 360 fee ors new features that parter in with youtube and bling. a video demo did show a couple using voice controls to surf the channels and did up watching abc's castle. executives hope to make xbox live a hub for all sorts of entertainment. >>> so if you have an ipod, ipad or iphone,le a be able to watch them all. apple's ceo steve jobs introduced the icloud on monday. apple is not the first in the so-called cloud market. they would like to take it to a whole new level. we have the pros and cons of living in the cloud. >> reporter: apple took a big leap into the cloud. >> some people think the cloud is just a hard disbeing in the -- disc in the sky. we think it's way more. >> reporter: speaking at the conference, apple's ceo steve jobs unveiled eye cloud which would store documents, photos and other things on the internet. for consumers or still cloudy on what the icloud concept; it saves users virtual and physical space. >> they allow you to not use expensive bulky storage

microsoft is taking center stage. details coming up. >>> the report that could shake up the state capitol and leave politicians fighting for their jobs.olksre r folks are getting to their jobs. 580 through livermore. we are following a truck fire in the south bay. updates coming up. ) >>> welcome back to you. it's a lovely, lovely morning. should shape up to be a nice day once the cloud cover burned off. a life look outside. it's 5:51 right now. a state budget battle could take a backseat as politicians fight to save their jobs. on friday, the state will release the new redistricting map to change the political landscape of the state overnight. it could stall budget negotiations. if lawmakers do not pass the budget by june 15th, they will have to forfeit their pay. state lawmakers have to come up with an agreement on what to do with the $26.4 billion deficit. >>> it's 5:51 right now. i want to check the morning commute with mike. >> we are going to start with an update for the south bay. a truck fire. a truck reported

microsoft is donating $500,000 in software and $15,000 in cash. >> i am investing in you. as the mayor i am looking at you right now as being people who can succeed me in this job. i believe you can do it. >> the initiative includes a chunneller program designed for high school grads. >> steve jobs is getting his own comic book. the comic book is pubbished by blue water productions. it will profile him and how he guided apple. it will be in book stores and available on august 24. >>> the rainy season looks like it's ending and things are drying up, why that could be a fast start to the fire season. >>> no high marks for meeting the budget but there is one thing that puts california lawmakers above the rest. >>> temperatures on the increase, i will show you the cities that will see the largest increase. >>> five boys charged with sexually assaulting fellow students during a field trip made their first court appearance today. they are being held and no pleas were entered today. back in march the five boys attacked two 12-year-old girls during a trip to a park. the girls repo

it looks like microsoft's smart phones. the new start screen replaces the start button that every windows users has lived with for years now. the company did not say when the new windows would be released. >>> a baby swan hatched on monday. they named her martha. they say she is very active and spends her day swimming in the law giewn. she may have some siblings soon. her parents are keeping protective watch over their three unhatched eggs still in the nest. >> we will have more soon. >> who is naming these creatures? blanche? we need to help them out. the power went out in st. louis, but it had nothing to do with the giants bats. and tone fee larussa pulled the plug on a giant victory. [ female announcer ] at the jcpenney appreciation sale get an extra 20% off apparel shoes and accessories with your jcpenney rewards credit card! save on all regular, sale & clearance items! no exclusions! that's an extra 20% off styles for her an extra 20% off brands for him and an extra 20% off clothes for kids! don't have your jcpenney ca

put out there that it is a monopoly. >> i find it so ironic -- [laughter] [applause] >> i covered microsoft and bill gates. i mentioned during that time, and i had some amazing conversations with bill gates. and i would say then, at that point i would've said this is something that bill gates would not wish on his worst enemy. i take that back. [laughter] >> i think it's steve who is the one who really don't give a couple of reported scenes in the. >> we can't repeat what happened. >> on tv, but i do know that when i was about microsoft server years ago and i saw steve palmer, this was we were google have gotten really big and he said, google is a nice little company. unlike what you think what he said we used to be a nice little company and then suddenly we were a monopoly. this is what he said to me so clearly. i remember that because i watched them move forward. how to see google google's recent multimillion dollar has to retain employees effective morale. >> that's a great question. there's been reports to keep some of its key talent. google is getting remarkably huge sums of money. and

meet the microsoft genius who spent a personal fortune to teach the world's best chefs and you how to cook perfect food. it takes him 30 hours to make a burger, but you'll get a taste of his skills in minutes. >> announcer: from the global resources of abc news, with terry moran, cynthia mcfadden and bill weir in new york city, this is "nightline," june 24th, 2011. >>> good evening, i'm bill weir. and we begin tonight with breaking news out of new york, where late tonight the state senate passed legislation permitting same-sex marriage. four republicans joined 29 democrats to pass the measure that failed a couple years ago. when governor andrew cuomo signs that bill 30 days later, new york will be the sixth state in the nation, plus washington, d.c., to recognize gay marriage. >>> and we turn now to another breaking story out of nevada, a tragic one at that. a big-rig semi making a long haul through the nevada desert ran a crossing and t-boned an amtrak passenger train this afternoon, carrying nearly 220 people, killing at least two and injuring more than 100. with the details, here's

how to make sure your new phone isn't here today and gone welcome to to move microsoft is making that may change the way you do business. m >> 4:43 right now. you are looking at a picture of the bay bridge but it's so misty and rainy and what not that it's tough to see. we'll check in with christina. the u.s. government making moves to protect american companies from cyber attacks, for more on that and news before the bell let's turn to nicole lapin at cnbc. good morning, nicole. >> good morning. futures are higher after yesterday's healthy rally, the dow snapping a three-day losing streak. asian markets were higher overnight on optimism that the greek crisis will be resolved. europe is higher. we get some of our data on home prices forecast to have dropped again in april. and on consumer confidence. recap, the dow rising 108 points yesterday, 12,043 is is where we closed. the nasdaq up 35 to 2688. you're right, companies are facing a growing threat of cyber attacks. they have new tools. the department of homeland security will help avoid problems that let hackers exploit websites. th

we expect much more big news from microsoft when e-3 officially gets under way.k is live in los angeles to show us a little bit of what we are going to see today. very cool out there. >> yeah. i feel like a kid in a candy store. i'm sure a lot of your viewers would be if they were at e-3. you get your hands on tomorrow's games and hardware today. this is the show where all the big products make a debut including the play station vita. this is the new handheld gaming system to preplace the handheld portable system. vita means life. if you see the graphics, you'll see how it gets its name. life like graphics. comfortable to control. there's touch screens, a panel that's touch enabled. there's buttons. you can tilt it. it's like a council for your pocket. it's an amazing piece of hardware. there's going to be a lot of success with this. a game that we didn't get a chance to talk about, one of my favorites, the elder scrolls sky rim. if you are into fantasy, check this out. look at the graphics. it's available november on x-box 360, play station 3. you explore vast w

there you g all part of microsoft.it's all part of the video game console. >> everybody has a back -- not everybody has a backyard. >> but most people don't like you -- let you go on the roof. >> i am plapting a garden and you will come over for -- implanting a garden and you can come over for tomatoes. >>> stay with us. a bus driver is in trouble following an incident that allegedly happened with a student on her bus. >> what the driver is accused of doing and it has her facing two misdemeanor charges. >>> a piggy caused a major traffic mess and a reporter was able to get it back on the road. >> you know what that is is. >> what? >> a pig in a blanket. >> it is. but first we will head up to new york for this morning's tech bites. >> reporter: in today's tech bites apple launched i cloud. steve jobs says it will sync music books and apps on all the device i-phones, i-pads and computers and previewed operating system for mobile devices and macintosh. military action games are dominating the expo. the core market young m

hastings also serves as an independent director on microsoft's board. microsoft has an ownership stake in facebook. >> susie: why learning how to fail big is a good thing when it comes to silicon valley startups. here's harry lin, executive-in- residence at idealab, a technology incubator. >> for this month's commentary, i was tempted to talk about the technology market and frothiness, bubbles, and snake oil. but we don't need me adding to the hoo-hah. instead, as a veteran of the internet industry, i'm going to talk about the flip-side of irrational exuberance-- startup failure. conventional investor wisdom has it that seven out of ten tech startups go belly-up. out of the other three, only one or two are massive hits, providing outsized returns, which then make up for the seven losses. how does such a seemingly upside-down system keep going? because of what i'll call the ethos of smart failure. if you're not trying to create the next google or facebook, you're playing it too safe. therefore, you wont fail as much, and that's bad. if you're taking fore

let's start with a big jump in microsoft. shares rallied 3.7%. big rally for a big stock. volume was heavier than usual. nice rally here. tomorrow, the software giant has scheduled an event to make an announcement regarding cloud computing. that's the practice of using internet-based applications, software and services. microsoft is expected to introduce a cloud-based version of its office suite of business software. there are rumors the company may also launch a tablet version of its windows operating system. that really helped boost shares. other companies working in the cloud computing space helped the tech sector put in the strongest showing today. software firm citrix systems, tech storage and networking companies e.m.c. and f5 each were up by at least 3%. big banking stocks also rallied. bank of america was the second best dow industrial stock today, up more than 3% on strong volume. take a look at the move here. b. of a. stock has been bouncing around 52-week lows lately. around $10 or so. the bank stock buying came after international regulators agreed to new banki

for it to succeed, microsoft must convince companies to switch. the ring of terror appears to be over. the group that claims responsible for hacking in to websites nationwide announced they disbanded. >>> nevada is the first state to make it legal to travel in the audi tt. they say they safer than traditional cards because they won't be distracted. those are the tech bites. >>> 6:23. imagine pumping a solar-based fuel right in to your tanks. stanford researchers are taking the first step toward making that a reality with a solar panel that can make hydrogen for fuel cell cars. richard hart reports to solar gas tanks. >> there are times when you have extra sunlight and you don't need the electricity. in the middle of the day, no one has turned on the air conditioning and no one has lights on. we need way to store electricity. we need fuel. >> what if you submerge solar panels in water to turn it in to hydrogen instantly? that is what is going on in this lab at stanford university. >> we have all done the experiment in school. put two waters in h2o