is enormous benefit and opportunity in linking these isolated islands of data, services and devices in ways that will enable people and businesses to communicate and collaborate more easily.  This is where Microsoft .NET comes into play, enabling easier, more personalized and more productive Internet experiences by harnessing constellations of smart devices and Web sites with advanced software based on open Internet standards and protocols, including XML.  In addition, Microsoft .NET will offer computer users a unified interface that adapts to whatever they are doing, wherever they are, and is device-independent – a kind of “universal canvas” for the Digital Age. 

Microsoft .NET will create immense opportunity for hundreds of thousands of developers and industry partners, by providing the tools to build a new generation of truly distributed Web services that will transform the Internet and every other aspect of computing.  Microsoft .NET will revolutionize computing and communications in the first decade of the 21st century, by being the first platform that takes full advantage of both.  Microsoft .NET will take several years to come to full fruition, but we are tremendously excited about the potential.



The Foundations of Microsoft .NET



Microsoft .NET will build extensively on Microsoft’s current core businesses, including the Windows family of desktop and server operating systems, enterprise server applications, Microsoft Office and MSN, each of which is performing strongly today.  Windows 2000 has met with strong customer adoption and highly favorable reviews among IT managers, office users and industry analysts, making it the most powerful business operating system ever released by Microsoft.  Underscoring its reliability and the value of its new features, General Motors, Royal Dutch/Shell, Xerox Corp., and leading PC manufacturers – such as Compaq Computer Corp., Dell Computer Corp., Hewlett-Packard Co., IBM Corp., and Toshiba Corp. – are all deploying Windows 2000.

Windows Me, the latest version of the Windows operating system designed specifically for home users, released in September, provides consumers with an improved user and Internet experience, enhanced home-based networking features and compelling new digital media tools.

Today, Windows 2000 servers are powering the World Wide Web.  A majority of the top Internet retail sites, business-to-business Web sites and secure Web sites are running on Windows 2000 Server or Windows 2000 Advanced Server, and more Fortune 500 sites are running on Windows 2000 technology than any other technology.  Windows 2000 Datacenter Server, launched in September 2000, will provide even more power and reliability for high-traffic networks.

If Windows 2000 is the foundation of Microsoft’s .NET strategy, our .NET Enterprise Server products are the cornerstones.  In the year ahead we are launching seven new and updated enterprise server products.  Microsoft’s range of server applications, combined with the power and reliability of Windows 2000, offer versatility and affordability unrivaled by any of our competitors.  They also represent significant new opportunities to enhance Microsoft’s