In addition, we see opportunities to grow these businesses through reducing revenue lost to software piracy. We recently launched Windows Genuine Advantage, an initiative to enhance the benefits from licensing Microsoft software. We believe that rampant piracy in emerging economies will diminish over time as these economies become more integrated into the global economy. 

 

Expanding our innovation portfolio.    We see opportunities to grow by developing best-of-class products and services that expand our technology offerings. Within our larger businesses, we are working to develop new technologies that offer greater value in meeting targeted customer needs. These technologies will be offered as new products and as higher-value and segmented versions of existing products, such as Windows Small Business Edition, Windows XP Professional Edition, and Windows XP Media Center Edition. Within our emerging businesses, we are also moving forward with a broad portfolio of technologies, with a goal of providing best-in-class products wherever we compete, such as gaming, software for mobile devices, small business applications, and Internet Protocol television. 

 

Delivering software services.    While the PC and Windows remain at the center of consumer and business technology, Internet-based services are growing at dramatic rates. We are working across the company to infuse services into everything we do, and we expect both consumer and business services to be an important part of our future growth. 

 

In the past several years, we have gained extensive experience in providing a range of online consumer services, many supported by advertising or subscriptions. Such services include Hotmail, the world’s largest free email service with over 205 million active accounts, MSN.com, one of the world’s most popular online portals, MSN Messenger, MSN Search, and Xbox Live, the world’s largest unified online console gaming service. 

 

We are working to deliver several new services, including Windows OneCare Live, an integrated PC Health offering that combines security features as well as critical PC maintenance services. We also have expanded our range of services for businesses, such as Outlook Live and Office Live Meeting, which enables workers to collaborate interactively without the cost and hassle of business travel. Our acquisition of FrontBridge Technologies will enable us to provide managed services that enhance e-mail filtering and improve security for businesses. We see many other opportunities in managed services for businesses. 

 

Protecting Customers, Helping Communities 

 

As we drive for growth, we are also working to help protect the privacy and security of computer users everywhere through technological innovation, collaboration with industry and government, and education. With our own R&D and strategic acquisitions, we are making our products more secure and delivering comprehensive security solutions. In less than a year, customers have downloaded more than 218 million copies of Windows XP SP2, which helps protect against software worms and viruses. We are aggressively committed to building out our security technologies to