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Techweb: AOL Causes Microsoft To Lose Sleep

Jul 24, 2000, 20:02 (3 Talkback[s])
(Other stories by Aula Rooney)

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"Among the top 10 problems keeping Microsoft president and CEO Steve Ballmer awake at night are slowing corporate growth, Linux, and the Department of Justice's antitrust case. But Microsoft's No. 1 nightmare these days is America Online, according to Ballmer."

"AOL is our most serious competitor as a face to the consumer," Ballmer said during an interview with CRN, noting that the popular online services company tops the list of his worries these days. "We've got to really make progress."

"The urgency is in the numbers. Last week, Microsoft reported nearly $23 billion in revenue and a 16 percent profit growth for fiscal 2000, ended June 30. However, financial analysts are taking note of the meager single-digit earnings growth in the fourth quarter because of lower than expected numbers for Microsoft's bread-and-butter products, Windows 2000 and Office 2000 desktops."

"The forecast for Windows 2000 and Office 2000 desktopsthrough next June is not much better...."

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