Microsoft is working on a "true scale-out model" for SQL Server so users can run very large databases in heavy transaction environments that avoid the lockdowns encountered by databases such as Oracle's -- even in clustered environments, according to Flessner. Microsoft is also working on more policy-based monitoring, administration and application management for SQL Server.

"You've repeatedly told us that you don't want to have to tell servers how to do things," he said. "This is something we have to deliver to you."

Microsoft is also developing policy-based auditing, end-to-end encryption and fine-grained security, said Flessner. And over the long term, Microsoft's road map envisions cheap storage that will lead to databases being used to manage an "explosion" in rich multimedia data. Much of that data will be stored on portable devices, too, making data synchronization between data centers and devices "even more imperative."

Flessner also introduced his successor, Ted Kummert, a 17-year Microsoft veteran who now oversees development of Microsoft security products. Flessner, who had been an IT manager for 13 years before joining Microsoft, said he "handpicked" Kummert when he began thinking of leaving his current position three years ago.

Kummert emphasized that he, like Flessner, understands customer concerns. "I spent four years building out the infrastructure at MSN, so I have spent some time walking in your shoes," he said.