Microsoft is finally talking about Small Business Server 2008, but not every VAR is going to like what is being said. Sure, the proposed feature set sounds great, but there is one element that may cause concern, and that is the planned integration with Office Live Small Business, a hosted offering that is direct from Microsoft and offers a substantial feature set for free.

The question now is how deep will that integration be? Will SBS 2008 rely on Office Live for e-mail, Web hosting and contact management--or will it be optional? Where will the integrator fit into this picture? After all, Office Live is mostly free and the "for pay" services are sold direct, not through the channel! Add to that the duplication of features offered by Office Live and SBS 2008 and contention is sure to enter the picture.

VARs will wonder, "Should I use Exchange or Office Live? Should I set up SharePoint or use Office Live?" The questions will go on unless Microsoft shows the channel a clear path for both Office Live and SBS 2008 and educates partners on how to leverage the combined products to build services and ongoing revenues.