What's more, Longhorn contains the biggest overhaul to the Windows Server networking stack in 11 years, Ralston said. That includes a complete rewrite of the TCP/IP stack, the integration of IPv4 and IPv6 side by side, and scalable networking features that pave the way for customers to deploy 10 gigabit/sec networks. The new Windows Filtering platform shows all inbound and outbound traffic and integrates the firewall and IPSec management.

"This is a firewall and networking stack done right," Ralston said.

Microsoft also cited improvements to Directory Services as a major benefit of Longhorn server. In particular, the restartable Active Directory reduces the directory database's downtime and ensures that all independent file and IIS servers aren't affected by downtime. A read-only domain option, too, gives partners and IT administrators better control and security over branch offices.

Longhorn also introduces a significant new feature called Server Core, which gives partners and customers a stripped-down version of Windows Server that offers only a command-line interface and supports just four critical roles: Active Directory, file serving, DNS and DHCP.

By pulling out the GUI, .Net framework and Web serving, Microsoft said it creates a core barebones server with a vastly reduced attack service that doesn't to be updated and can be managed easily from the command line. Microsoft sees this 500-Mbyte file as ideal for branch offices so that if customers decide they need new roles, all they have to do is install the full version, Ralston said.

The next Windows server, too, brings improved support for Unix and Linux, Microsoft said. To that end, Longhorn will offer authentication integration in the form of password synchronization with Unix and Linux environments. Longhorn also contains a Unix subsystem that sits by the Win32 stack and talks directly to the kernel, enabling users to run Unix and Linux applications natively, Ralston said.

In addition, Windows Server also features enhanced performance and monitoring via two new features: Windows Performance Diagnosis Console and Reliability Monitoring, which keep track of system activity in one place, monitor system status and diagnose potential problems.

Longhorn also brings an overhauled Web server. With Internet Information Server 7.0, Microsoft includes the new WinFX services Windows Communications Foundation, Windows Workflow Foundation and Windows Presentation Server, as well as support for x64 processors. And there's no monolithic install. IIS 7.0 contains 53 modules that allow users to build the Web server that they need, Microsoft said.

"This is more than an enterprise-class [Web] server," Ralston said. "It is an extensible platform for delivering business applications and services over the Web.

And finally, Longhorn features improved server management, with a Server Manager tool that simplifies many administrative and configuration tasks for partners, IT administrators and end users. "All you have to do is type in a product key, specify where to install it, walk away and come back in an hour," Ralston said.