Even as it rolls out new features, Ballmer insisted that Microsoft will continue developing its entire range of Dynamics software.
"I get asked many times by customers and partners, are you committed to this strong lineup? Yes. We have a long-term view for each one of these products," he said. While customers can expect newer features to find their way into all the software, the specific attributes each one has "will all continue to be enhanced well, well, well into the future," he added.
He described Oracle as primarily a competitor and SAP as a partner and competitor.
As for IBM, Ballmer said that "none of their actual software product lines are today that strong. ... They're really more of an enterprise services player that just doesn't really love our software that much."
While a large enterprise might have an SAP or Oracle implementation as its backbone, there are "divisions or processes frankly where it is just simpler and easier to take Dynamics AX or one of our other ERP systems and customize and tailor it for a specific process."
Microsoft is using Dynamics AX for the Xbox game console's supply chain and manufacturing infrastructure, and is in the process of moving many workers over to Dynamics CRM, according to Ballmer.
But the company needs outside customers to fulfill its plans. To that end, it announced Wednesday that it is expanding its partnership with systems integrator EDS, hoping to sell more Dynamics CRM to midmarket and large enterprises.
Ron Rittenmeyer, CEO of EDS, claimed his business manages "more Microsoft software than any other company in the world" -- some 3 million desktops and 100,000 servers.
"We see the entire Dynamics thing as definitely an enterprise-grade solution. It's matured," he said.
EDS will initially roll out the services in North America and Western Europe, he added.