Development for Essential Business Server, MS’s mid-market server software bundle, has been halted. Microsoft is placing all bets on cloud computing for the m0re economically conscious IT markets. EBS bundled Server 2008, Exchange 2007, and server management tools together in one package. It will be discontinued as of the 30/06/2010.

Microsoft has said that the decision to discontinue the package was based on the fact that more and more mid-size businesses are turning to cloud computing or virtualization as a means of saving money. These technologies are also improving the?efficiency of businesses and therefore increasing competition.

Microsoft will still be selling it’s small buisiness sever. EBS will still be supported for the lifecycle period of its components. Microsoft will also be making the individual parts of EBS free to EBS owners. But only until the end of the year after it has been discontinued. Aiming to get all those on EBS onto the standalone components.

Microsoft has also said that this will not mean job loss for any of the EBS development team. They will be integrated into the Cloud and Server division.