Investors Given Little on Microsoft Internet Plan

Microsoft executives attempted to reassure the financial community that it is on course to merge its Windows franchise with its new Internet strategy, but nothing emerged at its annual financial conference with analysts last week to give Wall Street much comfort.

Granted, executives talked up several new products, including Microsoft’s armada of seven new Internet-based servers, a document-collaboration service for its Office software code-named “Tahoe” and announced a deal with Lycos Inc. using Windows 2000 technology for its Lycos Network.

But Microsoft acknowledged to more than 250 financial analysts, investors and journalists that the world’s largest software company is still waiting for significant revenue from Windows 2000 products to affect its bottom line.

For analysts, the big question is how fast can Microsoft turn its Internet vision into a revenue-producing reality. Said Merrill Lynch’s Chris Shilakes, Microsoft is undergoing the “broadest transition the company has faced in its history; but they have proven in the past they can make adjustments. It’s going to come down to execution.”