And the Foundation Server hopefully will appeal to users in small or emerging markets where Linux has been satisfying needs.

On the mobile side, Microsoft will try to take advantage of users switching from feature phones to smartphones with a low-cost alternative in that market.

"I do think the guys in the best position are the guys with phones at low price points," Ballmer said.

Microsoft plans to focus on corporate buyers as it preps to roll out Office 14 next year.

Ballmer said enterprise buyers bring the greatest Office revenue "because we attach more value. We help the user log-in, we help IT manage the desktop, we help with collaboration, we run e-mail."