Desktops and key servers at Energizer will get day-to-day management from Microsoft under an unusual arrangement between Microsoft's IT organization and the battery manufacturer. Because it involves ongoing management rather than just consulting, planning, and deployment, the deal marks a step onto territory normally left to Microsoft partners such as EDS, Getronics, and Hewlett-Packard.

Under the agreement, which was leaked toSearchWin2000.com and subsequently confirmed by Microsoft, the Microsoft IT group, headed by CIO Ron Markezich, will manage desktops and some messaging and intranet servers for 6,000 Energizer employees. Microsoft says it wants to learn more about these functions by working directly with customers, and is considering taking on "a few" additional customers to better understand how its products work in a wider range of environments. The company says it will use these experiences to improve products, partner training, and tools. However, the Energizer deal might also help Microsoft assess if and how IT outsourcing can drive software product sales, and whether IT outsourcing itself is a practical side business for Microsoft.

For an overview of the Microsoft IT organization, see "IT Organization Focuses on Costs, Products" on page 29 of the Nov. 2004 Update and "How Microsoft Organizes IT" on page 31 of the Nov. 2004 Update.