Microsoft 2007 Annual Report Download - page 4

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PAGE 3
became a $1 billion business in 2007—has grown 27 percent, and Microsoft Office SharePoint® Server has grown
by 67 percent.
Now we are focused on diversifying once again as we pursue opportunities in consumer technology. To build on
the strength we have in the consumer marketplace with Windows Vista, the 2007 Microsoft Office system,
Xbox 360™, Microsoft Windows Live™, Windows Mobile, and Zune, we are focused on delivering products that
are compelling and cutting edge in terms of design as well as features and functionality. As part of our emphasis
on success in consumer technologies, we are also working to define the next era of consumer electronics. In the
past, consumer electronics was a hardware-centric business; today, the real innovation in consumer electronics
devices lies in the software that powers them. This is creating new opportunities for us to deliver end-to-end
experiences that no other company can match.
Underlying our opportunities in consumer technologies, and in all of our businesses, is a companywide
commitment to fully embrace software plus services. Software plus services enables us to combine the
advantages of Internet-based services—software that resides on the Internet, is downloaded quickly for each use,
and is accessed through a Web browser—with the power of desktop and server software. Software plus services
represents the single biggest opportunity across every one of our businesses. Our software-plus-services
approach will enable us to deliver new experiences to end users and new value to businesses as we combine the
richness of our desktop software with the breadth of our online assets, and the control and security of our
enterprise software with the flexibility and mobility of our consumer devices.
In fiscal 2007, we made important progress in software plus services with the introduction of Windows Live
Spaces and Windows Live for Mobile, and the release from beta of Windows Live Search, Windows Live.com,
Windows Live Local Search and Office Live. We also introduced new developer tools such as Silverlight, Popfly
and the Microsoft .NET 3.0 Framework. In the coming year as we continue to build out our services platform, we
will bring a broad range of new products and service offerings to market that target the needs of large enterprises,
small and medium-sized businesses, and consumers.
Delivering More Value Around the World on the Desktop and the Server
Although we enjoyed strong success in 2007 with the launches of Windows Vista and the 2007 Microsoft Office
system, we see strong opportunities for growth by delivering more value per customer. With the planned releases
in fiscal 2008 of Windows Server® 2008, SQL Server 2008, and Visual Studio® 2008, and the opportunity to
provide additional value in security, messaging, systems management and collaboration, we are well-positioned
to build on our strength with businesses of all sizes. We will also continue to pursue new opportunities in high-
performance computing, unified communications, healthcare and business intelligence.
Around the world, we’re seeing excellent growth in many emerging markets as more and more people begin to
participate in the global knowledge economy. For example, in Russia and Vietnam our revenue grew in excess of
70 percent in 2007. Other emerging markets that saw impressive growth included India, China, and Brazil which
all delivered revenue growth that topped 40 percent. Growth was strong in many developed markets as well, with
Ireland, the Netherlands, Spain, and Australia each exceeding revenue growth of 25 percent. All told, revenue
jumped 25 percent or more in 46 countries in 2007.
Investing in Communities, Fostering Diversity
Using the power of technology to help people around the world achieve their potential is central to our mission,
and we continue to work to foster social and economic advancement for communities through partnerships with
public- and private-sector organizations.
In April, we announced the expansion of Unlimited Potential and unveiled a new commitment to help close the
digital divide by creating new products and programs that will help bring social and economic opportunity to the
estimated 5 billion people who are not yet realizing the benefits of technology. Unlimited Potential is focused on
delivering relevant, accessible and affordable solutions that will help transform education, foster local innovation,
and help create jobs and opportunities. We believe Microsoft can have the greatest impact in these three areas,
creating a continuous cycle of sustained social and economic opportunity.