Microsoft Corp Chief Executive Steve Ballmer said the transition from PCs to smartphones and tablets is a time of potential tumult in the technology industry, but said the software maker will continue to prosper in the changing market.

Ballmer said that Microsoft's Windows operating system, currently used in the vast majority of the world's PCs, will be featured on the new breed of touchscreen tablet PCs.

Depending on what you're trying to get done with the device at different times, there will be people who absolutely will want the comfortable and familiar look of Windows, said Ballmer at the All Things Digital conference on Thursday, where he appeared on stage along with Microsoft Chief Software Architect Ray Ozzie.

Apple Inc has taken the lead in the nascent tablet market, selling more than 2 million of its iPad tablets in about two months. Apple also recently surpassed Microsoft in market value.

There's nothing bad for us in the trend, Ballmer said of consumers' tastes for new Internet-connected gadgets like tablets and smartphones.

We are moving from a world that's fundamentally good for us to a world that could be even better, he said.

Ballmer also said that business in developing countries has started to come back and spending by businesses on technology appears to be recovering.

(Reporting by Alexei Oreskovic, editing by Gerald E. McCormick)

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