Bill Gates, 12/27/99

The 25 most powerful people in networking

Bill Gates, chairman and CEO,
Microsoft

B. Gates

After years of scrutiny, the federal government has finally rendered a decision: Microsoft abused its power in the industry to thwart competition, influence business partners and consumers, and stall technological innovation. Microsoft is a monopoly.

That's about as powerful as it gets. Monopoly.

Aside from this dubious affirmation of Microsoft's power and the anxiety about what comes next (will Judge Thomas Penfield Jackson order that the company be broken up?), 1999 was a stellar year for the Rage of Redmond.

Fiscal 1999 revenue of $19.8 billion was up 29% from fiscal '98 revenue, and earnings of $7.8 billion were up a whopping 73% from a year ago.

Microsoft made significant strides in its Internet and network product portfolios with new offerings and initiatives for Web-hosted electronic-commerce applications and application service provisioning, and by increasing support for the XML programming language. But the company riled many in the Internet community when it would not commit to integrating IP Version 6 into the soon-to-be-released Windows 2000.

Microsoft also served notice that it intends to be a major force in broadband access by investing $5 billion in AT&T with the expectation that AT&T will put Windows CE in the cable set-top boxes of recent acquisitions Tele-Communications, Inc. and MediaOne.

But Microsoft also faces a number of challenges, ones that may chip away at the monopoly power the company enjoys. One is the open source operating system movement, led by the Linux disciples. Another is competition from 3Com's Palm division - soon to be a separate company - for the operating system software in handheld devices. But the most obvious and ominous is the impending Justice Department decision on whether Microsoft should be broken up or remain intact. That will have far-reaching ramifications not only for the company and Gates, but also for the industry, the economy and advances in high-tech.

Related links

Bill Gates' Web site

Windows 2000 code complete
Network World, 12/20/99

Gates pushes 'Net use for businesses
Network World, 04/15/99

2005: A Microsoft odyssey, the final chapter
Network World, 03/22/99

Does Bill still use e-mail?
Network World, 01/18/99

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