bandwidth

Microsoft’s vision of empowering people through great software — any time, any place, and on any device — depends on helping consumers and businesses advance from today’s narrow-band world into a broadband future.  Even now, the majority of consumers — along with many small and medium-sized businesses — still access the Internet via their regular telephone lines.  The result is that the rich world of real-time interactivity remains a dream for most consumers, while many businesses are reluctant to put videoconferencing or multimedia on their networks, because they fear it will crowd out transaction traffic and other high-priority communications.

Our core strategy here is to make investments that will accelerate the deployment of high-speed broadband networks and to collaborate on the technology that will make interactive services for consumers and businesses run seamlessly across these networks.  To that end, we are working with companies that will play a leading role in making broadband Internet and multimedia access widely available.  We are enthusiastic about the many technologies that will deliver this, which is why we continue to invest in various infrastructures such as wired and wireless telecommunications, cable, and interactive television.  Some of our exciting relationships include AT&T, Nextel Communications, NTL, Rogers Communications, WirelessKnowledge, Concentric Networks, Wink Communications, and more.



The PC-Plus era

The enduring popularity of the PC — more than 100 million should be sold worldwide this year — is amazing, but not surprising.  In a single, economical package, the PC offers individual students, knowledge workers, and consumers the kind of computing power that was found only in corporate computing departments just a decade ago.  Whether you want to communicate, learn, work, or play, the PC can enrich and improve the experience.

In the new millennium, the remarkable power and flexibility of the PC will be available wherever it is needed.  The PC-Plus era will be about connectivity, scalability, and simplicity.  It will be an era when people are at the center, where technology is a natural extension of the way consumers and businesses think about themselves and their interactions with others.  The combination of experience, resources, and research that is unique to Microsoft puts us in a strong position to transform this vision into reality.

We are investing heavily in the future — from world-class customer support to the $3.8 billion we plan to spend in fiscal 2000 on research and development for the products of tomorrow.  There is, however, no guarantee of success.  Competition continues to intensify, and regulatory pressures are unlikely to ease.  Although global PC sales have proved remarkably robust, some slowdown is likely in the coming year.  And as Microsoft’s business becomes more complex, the strategic challenges and risks we face grow exponentially.

I remain optimistic, because the new opportunities for great software products are still incredible.  I appreciate the unwavering support and trust of our shareholders and customers as Microsoft enters the 21st century.



Bill