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To: Captain Jack who wrote (79526)3/14/2000 8:18:00 PM
From: Piotr Koziol  Read Replies (1) | Respond to of 97611
 
and speaking of W2K, here's some more good news which should rub off on CPQ:

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Tuesday March 14, 6:44 pm Eastern Time

FOCUS-Microsoft sells 1 million units of Windows 2000

(Updates with comment from Microsoft executive, analysts, adds background, byline, pvs REDMOND, Wash.)

By Scott Hillis

SEATTLE, March 14 (Reuters) - Microsoft Corp. (NasdaqNM:MSFT - news) said on Tuesday that sales of Windows 2000 had topped 1 million units, blowing away the
software giant's previous business operating systems and giving it a good start in catching up in the booming corporate computing market.

The figure included worldwide sales for the three versions that hit the market last month: Professional aimed at desktop computers, and Server and Advanced Server for the
powerful machines that run Web sites and business networks.

``We are thrilled with the tremendous customer response to the Windows 2000 platform,' Microsoft Chief Executive Steve Ballmer said in a statement. ``Reaching 1 million
units so quickly is testimony to the high quality and reliability of Windows 2000.'

Shares in Microsoft fell 2-7/8, or nearly 3 percent, to finish at 95-1/8 on the Nasdaq amid a broad sell-off in technology stocks on Tuesday.

Microsoft, headquartered in Redmond, Wash., launched the new software in mid-February after spending more than $1 billion and three years on its development.

Executives from Ballmer on down have called the software a ``bet-the-company' product that Microsoft, long dominant on home PCs, hopes will give it a much bigger
chunk of the lucrative business computing market.

But some analysts voiced doubts that Windows 2000 would post strong initial sales, citing concerns over reliability and the slowness with which a typical business upgrades
its computer network.

Even so, sales of Windows 2000 trounced those of its predecessor, Windows NT 4.0, which sold 140,000 copies in the three months following its July 1996 release, Craig
Beilinson, lead product manager for Windows 2000, said in an interview.

``The fact that so many copies of Windows 2000 have been sold and deployed in the market, and that customers aren't finding show-stopper issues ... speaks to the fact that
Windows 2000 is a rock-solid product,' Beilinson said.

Tom Bittman, a research director at technology analyst outfit The Gartner Group, said the 1 million milestone boded well for Microsoft, but that the real sign of success
would come with wider adoption of the industrial-strength versions for servers.

``That's what Windows 2000 is all about. It's about opening up to new markets, it's about taking Microsoft into the home of Unix,' Bittman said, referring to a rival business
operating system used by competitors like arch-foe Sun Microsystems Inc. (NasdaqNM:SUNW - news).

Bittman said he expected sales of the server versions to ramp up quickly next year after companies had time to digest the complex technical and compatibility issues involved
with making the switch to Windows 2000.

``The Windows 2000 Professional will be put on line pretty quickly. The server product will go through a much more significant amount of compatibility testing,' Bittman
said. ``It's not a matter of if, but when.'

The sales figures released on Tuesday included purchases of Windows 2000 through retail outlets, PC makers and channel resellers, the middlemen that help organizations
set up their computer systems, Microsoft said.

The sales excluded copies licensed to big customers under sweeping enterprise agreements. That is because such deals do not necessarily specify an exact number of copies
and the software can be deployed over years, Beilinson said.

He added that 90 percent of units sold were the desktop version, with the remainder taken up by the pricier server platforms. That was equal to the ratio of installed
computers, which is one server for every nine desktops, he said.

Windows 2000 Professional version costs $319, while Server runs $999 and Advanced server carries a price tag of $3,999.

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Microsoft Corp (NasdaqNM:MSFT - news)
Sun Microsystems Inc (NasdaqNM:SUNW - news)
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