Microsoft has boasted of its plans to continue to invest billions into research and development to stay one step ahead of rivals.
The supplier said that it's R&D spending reached $8.5bn in fiscal 09 compared to $6.3bn from IBM, $5.2bn by Cisco and $2.8bn at Oracle and it had plans to increase it to $9.5bn next year.
Microsoft said it would invest $4.2bn into PCs research, $7.2bn in communications and productivity, $2.2bn in servers, $1bn in phones, $1.6bn in TV and entertainment, $2.1bn in search and $2.7bn in enterprise infrastructure.
Gordon Frazer, UK managing director at Microsoft, said that Microsoft had a lot of improvement to make up in the search area with its Bing offering, and had more work to do in phones and the TV and entertainment.
"We are putting out energy into each one of these businesses and are gaining critical mass," he said.
"It is all about being focused on the long-term and being committed to where it is going," he added.
A version of this story appeared on MicroScope.