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Throughout history, gold was the
currency that drove business, even though it was bulky and hard to distribute. But today,
the currency that matters is information. That's why we've designed our products to
distribute information quickly and to make it accessible to the broadest group of people.
And why the We believe so strongly in this new, expanded concept of wealth that we have restructured our entire company around it. In February, we reorganized our Platforms Group into three divisions that fully coordinate our Windows family strategy with our Internet strategy. At the same time, we realigned our Applications and Content Group to consolidate productivity applications and to create and market our interactive titles. These changes improve our ability to create end-user and developer products that give customers simple, direct access to information in all forms. In line with our commitment to embrace and extend the Internet, we released new products, such as Microsoft Internet Explorer 3.0 and Internet Information Server. We also built Web access into desktop products like Microsoft Office, at no added cost to the user. By helping users of Microsoft applications freely enter, explore, and interact with the Internet, we helped make the PC a more vital part of everyday life. At the same time, we created even higher demand for Microsoft products. In 1996, we made our largest commitment ever to research and development. For 1997, we will spend even more to take the possibilities of personal computing even further. We have also focused on the value of the Microsoft name itself, which has become one of the world's best-known brands. In a number of ways, we are using the brand to make a statement about our vision, our culture, and our abilities. In keeping with our belief that information is the real source of wealth, we contribute funds and software to institutions across the country, from the United Negro College Fund to Libraries Online. Last year, these gifts totaled more than $11 million in cash and $62 million in software. In all, 1996 was a year when we opened an infinite number of possibilities for millions of people worldwide. Here's how we did it: Microsoft Internet Explorer 3.0. When we introduced this new browser, it was received with great enthusiasm from both users and industry experts. As a fundamental part of our strategy, this new product is absolutely free to every user. It is available over the Internet, just by going to www.microsoft.com/ie, and can be downloaded in only a few minutes. Microsoft Internet Explorer 3.0 offers the latest technology, including support for HTML and Stylesheets, ActiveX™ controls, Java™, and plug-ins. So it helps Webmasters and content providers use the full potential of the Internet. And offers genuine breakthroughs in video, animation, sound, and two-way interactivity. As a result, millions of end users enjoy richer, more involving experiences. Much like the experience we hope you are enjoying now. This new browser also includes NetMeeting™ conferencing software, which lets users hold real-time meetings with people anywhere in the world. This is the third version of Microsoft Internet Explorer released in fewer than 12 months. The pure intensity of this development schedule is a perfect demonstration of our enthusiasm for the Internet, and our commitment to it. Microsoft Windows® 95. The most anticipated product launch in our history, the Windows 95 operating system sold a million copies the week it was introduced. And all through this year, Windows 95 continued to build unprecedented worldwide momentum. Now, more than 40 million people enjoy the ease of use and excitement that Windows 95 brings to personal computing. With its multitasking ability, integrated network connectivity, and plug-and-play architecture, this advanced 32-bit operating system makes users far more productive, offers a richer experience, and creates tremendous new opportunities for developers and other Microsoft industry partners. In every way, Windows 95 established the PC as the clear Internet platform of choice. And the unparalleled success of Windows 95 offers us an even more solid foundation as we continue to build the Microsoft brand worldwide. Microsoft Office. Microsoft Office is the world's most popular office suite. This integrated suite of 32-bit software applications takes advantage of the many advances in the Windows operating systems, such as preemptive multitasking, multithreading, and enhanced OLE technology. This may sound complicated, but we have spent literally millions of development hours to guarantee that the power of our technology actually makes our products easier to use. To users, Microsoft Office helps them perform higher quality, more accurate work faster than ever before. Included in the professional version of the suite are Microsoft Access, Microsoft Excel, Microsoft PowerPoint®, Microsoft Schedule+, and Microsoft Word. Anticipation is already building for our Office 97 suite, which will include advances such as hyperlinks, Web toolbar, Web FindFast, and ActiveX control support in all applications. Microsoft BackOffice™. While our user products achieved record sales this past year, our suite of products for networked applications grew just as dramatically. In 1996, revenues from our server and server applications businesses more than doubled from 1995. Microsoft BackOffice is an integrated suite of products that significantly reduces the effort required to build and maintain mission-critical distributed computing networks. BackOffice products make it easy for companies to create Internet and intranet solutions, for hundreds or even thousands of users. Based on Microsoft Windows® NT Server, the Microsoft BackOffice Server suite includes Microsoft SQL Server™, Microsoft Exchange Server, Microsoft Internet Information Server, Microsoft Systems Management Server, and Microsoft SNA Server. |
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