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  By Steve Jobs and Paul Allen
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  IBM asked Microsoft to provide the operating System
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  First operation system
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  Application software: Microsoft is the first to offer a bundle of applications at a discouted price.
Competing with:
- Lotus
- WordPerfect
- Borland - 
  
  Microsoft's OS strategy: periodic upgrades
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  Operating system for corporate service market.
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  Microsoft captured 90% of the market for productivity software applications in 1995. But steady downward pressure on prices
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  Fight competition against Netscape. Bt 1999 Explorer had captured 77% of market share.
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  Java made it possible for software applications to run on any mahcine. Threaten to reduce the significance of the traditional OS.
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  Federal court judge ruled that Microsoft was a monopoly.
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  Threats:
- Open source software
- Linux
- Security issues Opportunities:
- emerging markets
- foreign governments
- NET.: an operating system for the internet. Competitor: Java
- Vista: new version of windows - 
  
  New markets:
- home entertainment devices and content: Xbox
- Mobile and embedded devices: Windows Mobile 2003
- Microsoft Netwrok (MSN) - 
  
  Microsoft Business Solutions (MBS)
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  Company was too centralized
- company was split up in different business units
- switching from stock options to restricted sotck awards -