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Canonical · Memo

The Internet Tidal Wave

Bill Gates · 1995

"The Internet is the single most important development since the IBM PC; Microsoft must reorient every product around it or be swept aside."

The idea

In May 1995, Bill Gates sent an internal memo to Microsoft's executive staff and direct reports declaring that the internet represented the most important technology shift since the IBM PC, and that it directly threatened Microsoft's dominant, closed desktop-software business model. He ordered every product group across the company to reorient its strategy around the internet immediately, treating a young startup called Netscape (whose browser was the internet's main gateway at the time) as the company's most serious competitive threat.

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