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At least a few of the companies, many of them startups, are possible Microsoft acquisitions, too. If the company doesn't have people here shopping for acquisitions, something is grossly wrong.

By the way, Microsoft made an impression in the best way possible—freebees. During the main morning session, Microsoft software was thrown out to the audience, mostly to people sitting up front and waving or shouting. Smart marketing, Microsoft.

I really wanted to attend DEMOfall yesterday—after all, it's taking place in the city where I live, San Diego—but Microsoft's "Get Virtual Now" event was more topical for this blog's targeted readership.

I want to call out three presentations from the morning session:

Familybuilder uses social networks to connect people while they're still alive. Now there's an interesting approach to genealogy—connect with the living instead of the dead. Today, the company introduced a DNA kit to help identify those living relatives.

Microsoft launched Windows Live Spaces based on the precept that people want most to connect with friends, family members and even coworkers. The approach is sensible. But there are many more ways that people can connect online that are, from a product marketing perspective, very sticky. Nothing is stickier than family. My question: Why isn't Microsoft a partner?

Familybuilder's big success, before the launch of today's revamped cross-platform site, was through its Facebook application released in 2007. Familybuilder is also available through Bebo, Hi5, MySpace and Orkut.

A partner like Microsoft could bring something important to Familybuilder: more confidence that personal privacy will be protected. DNA testing opens up a Pandora's box of health privacy disclosure problems. Microsoft's strong privacy policies could and should be example to a company like Familybuilder.