for the future. Over the next five years, as we infuse XML Web Services into all our businesses, we see the opportunities for growth continuing. This transformation is key to expanding our revenue stream moving forward. 

People 

As we expect to grow this year to more than 50,000 employees, we will continue to put a high priority on developing our next generation of business leaders, and ensuring that we have the appropriate management initiatives and tools to enable and empower a creative work environment. Our attrition rate – at 8 percent annually – is less than half the average of the overall software and IT-services industry. Meanwhile, we continue to explore new ways to foster a progressive work environment that attracts and inspires bright, passionate people who are committed to continuously improving our products, and to creating a collaborative work environment where individual excellence and teamwork is rewarded. Facilitating a diverse workforce at Microsoft and within our industry continues to be an important priority. 

The Antitrust Lawsuit 

Microsoft is committed to continuing to deliver innovations to customers and new opportunities for partners and the technology industry as a whole. The U.S. Court of Appeals ruling in the antitrust lawsuit significantly narrowed a lower court ruling that threatened to stifle industry innovation. We are continuing to work vigorously to resolve the remaining issues in the case in a manner that will provide clarity to Microsoft and the marketplace while enabling Microsoft to meet the needs of consumers and the industry. 

Industry Leadership 

As a successful company, we understand that we have a responsibility to provide leadership in the broader industry. Particularly given the difficult economic times, it’s important that our industry work together to build on the technological advances that have fueled productivity and growth over the last decade. Our work on .NET, XML Web Services and open industry standards are examples of the deep industry engagement to which Microsoft is dedicated. While vigorous competition will always be a healthy hallmark of our industry, we are also committed to building relationships – with partners and even competitors. 

Two years ago, we outlined a set of values that have evolved since Microsoft’s founding and which capture the spirit of our business practices (microsoft.com/mscorp/values.htm). As we look to the future, the cultural assets that have been such an important part of Microsoft’s success over the past 25 years will continue to evolve. One of the most fundamental of these cultural attributes is our commitment to accountability. Accountability to customers by continuing to improve product satisfaction. Accountability to partners, including smaller businesses and start-ups, who share the vision of affordable, connected computing. Accountability to the technical community through support of resources that enable software developers to create the next generation of products and grow successful businesses. Accountability to shareholders by continuing to invest in growth opportunities for the future, while staying focused on managing our business today.