Las Vegas - CEO Steve Ballmer, Microsoft came to the Consumer Electronics Show in his usual optimism, but he also brings a clear understanding of reality: Tech industry in some hard times.

“Actually, this is not the recession, it is a little drop. This is totally different, and we’re trying to really suss through what we think that means for us,” Bolmer said in an interview with CNET News here Thursday, a day after the completion of speech at the conference.

Bolmer said that “dumping” would mean for Microsoft, as well as lessons learned from Vista and Microsoft Office to go on the Internet. When it comes to what concerned him most, most days it is still Google, although he concedes he was forced to spend more time recently on economic issues and the Microsoft makes an adjustment is necessary. It will not go into detail about that (and who) Microsoft plans to reduce, but it is clear that some changes are.

Below is an edited version of that interview:

CNET News: It is obvious that Microsoft does not necessarily get all that can expect to respond to the criticism Vista. What do you guys plan to do differently in Windows 7?

Bolmer: Well, I think we made the choice in some Vista to improve security on the type of damage, so to speak, on compatibility. In Windows 7, we can build off compatibly Vista and really kind of tune, if you want the user interface, productivity, and eventually, it will be what users think of the product that we are building, and we will begin to receive feedback on the beta this week.

Q: How hard are you pushing the team to get Windows 7 this year?

Bolmer: “I do not hit a hard team, the team is pushing itself. They set goals and objectives and, of course, we send the product when it’s - as I said last night - as a right, and ready, and when we know when, we share that.

Q: One of the biggest parts of the computer business, which actually dropped on the background, of course, a difficult moment in the whole Netbook segment. What does this mean for Microsoft, both in terms of technology, but also in terms of business? What impact that you?

Bolmer: Well, we did very well Netbooks. When they left, I am not sure if people knew whether they were a PC or something else, and I think all kind of understand now that this Netbook small form factor, low-cost personal computers. And we are doing very well with Windows XP, which is suitable. Vista is not suitable, and we make every effort to make sure that Windows 7 is very well suited to Netbooks.

You know, in terms of business, a low-cost car is slightly less revenue per unit for Microsoft, but I think this gives us an opportunity to see the expansion of the overall PC market.

Question: It is clear that everything you have said here at CES is taking place at a very difficult economy. What does this mean for the economy of Microsoft and its plans?

Bolmer: Well, I think there are two ways to look at it: First, what will happen to call the revenue in our industry? Revenue will be lower in general in our industry than it would have been, and that will (affect) Microsoft, Cisco - You name the company - Intel. We all depend on this.

In doing so, he said that the pace of innovation in our business will not change. The possibility there will not be changed. And the key: How do we right-size a bit, such as industry, and that means different things to different companies to adapt to the fact that earnings will be lower. And at the same time, keep the strong momentum of R D and what happens with the authorities in the future. And each company will discuss its plans. We are kind of a quiet period, so I do not very much talk about it.

Q: Going back to the search is obviously a key area for Microsoft. You announced a partnership a couple of deals that will be you some distribution, but clearly is not involved in distributing it to pretend you need to make progress against Google. What else does Microsoft have to be really serious competitor to Google?

Bolmer: Just keep working. I mean, look, this is not something that changes overnight. Everyone wants us to Snap our fingers. We have a good competitor, but at the same time, we see a real opportunity to improve the search, make a distinction, but that did not happen overnight. We will you have to work and workers; innovative product-wise, marketing, branding, distribution, and we should be patient about it.

I like our new release. We do two releases a year. We continue to attract great talent, which allows us to do interesting things. Our cash back program has some early promise in terms of what I call business model differentiation, compared with Google, but we will continue to work.

Q:: say, four years, but you would hope that you’d like more progress in terms of market share?

Bolmer: Maybe. Maybe. I am not sure that would have been nothing but the National Assembly? Already, because the market leader is a strong company. And we must preserve it.

QUESTION: You said that, although you are not interested in buying the entire Yahoo, you should be open for a certain search solution. How likely do you think so?

Bolmer: there is no way his handicap. I think at this stage, it is probably fair to say that I am not even sure, Yahoo is Handicap him. They are looking for a new director, and we just have to wait and see how all that varies.

Question: You said that some time ago that there was no active discussion, is that more be done?

Bolmer: Yes. I think that probably holds true for us too many comments.

Q: We talked about Google, we talked about the economy. Which actually takes more time, in terms of which you spend your time concerned?

Bolmer: Well, in general, the answer to this question: Google, Google, Google, Google, Google. Now, the truth is that, for a period of several months, we have to go through, and say, well, what we really think that this is the economic case, this year thing or is reset, and then we build a new base and how we can deal with, and the Law of the consequences?

So there’s little bubble here at a time when I say I’m spending a little more time. But in general, I can not control the economy. We can drive, and control, but also affects our competitive position, so the lion’s share of my energy will be there.

Q: Microsoft, in the past been able to get even, you know, the typical economic downturns for the type of cutting edge. Is it fair to say that what you need to do at this time, it will be more significant than anything, you should have been done before?

Bolmer: It’s premature to comment. I am referring to the fact that this issue is, it does not decline, it is a little drop. This is quite different, and we’re trying to really suss through what we think that means to us.

Q: One of the biggest changes in the next side of things is the fact that individuals and companies will soon be able to gain access to the Office via the Internet. With that door open?

Bolmer: There two aspects: one aspect of the concept of the genus, I can get access to the program when I was not on my own computer, and you’ll get access to certain things when you’re not on your own computer. It is a pleasure. People want the whole building as a whole. The second thing is: we can provide even better conditions for people to collaborate in the performance environment? And I think this is a great thing, and you will see us both - to press both of these themes in the new release of Office.

It is important to do, it gives some new scenarios, but I do not just say: ‘Oh, is not it great, I can start Excel in the browser, or a subset of Excel in the browser. ” I’m not quite sure that in itself is an achievement. Google, and people want to run around, LTD. Ahh. Wu, you know - I do not quite understand.

Question: For several months, ever since Bill (Gates) had moved from full time to work with the foundation. Any surprises in terms of what it means and what it means in terms of changes in Microsoft?

Bolmer: I do not think that all that surprising. You know, I think we are trying now to get settled into a rhythm. Bill and I see each other, you know, we regularly lunch, there are council regularly scheduled meeting with several internal groups. I think it is to find out how he spends his time. But I do not think that any real surprises.

Question: Is this a little strange for the provision of basic CES? It is obvious that you give a lot of big speeches.

Bolmer: Yes, I mean, yes, for some reason, it is that creativity, and yet, as I said, yesterday evening, I returned to my room and said: “It was actually much easier word to as many others. ” I wonder why I thought that it would be difficult to make one.

Question: In terms of the economy, and what it means, what kinds of things that are the least influence within Microsoft, and what kinds of things that do well?

Bolmer: You mean what will sell and what will not sell? I think PCs are going to sell a little bit worse, which means, Windows will sell a little bit worse. I think the servers - because the capital costs will be attacked, the servers will sell slightly less than that which has affected servers. Now, we continue to take part in the business of servers as a whole, so I do not know, which means that you will be in our overall results. Phone, Internet, these things should be opportunities for growth companies.

Question: Do you think that this drop, as you called it, will force Microsoft to withdraw from some things that you do?

Bolmer: I would say, at the macro level, the same as we do. At the microeconomic level, I am sure there will be some things where we have a lot of people, and, you know, we might be the right size, or maybe we were expecting to go to that many people (it moves in hands to show lower levels of growth) … I think it is more likely to stay flat for some more projects. You know, there will be something that can not make as much sense. I do not know. We shall see how all that comes together.