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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 Microsofts 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 Gates
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