What they did was bundle internet connectivity in with the every windows PC. Sounds ridiculous even mentioning it, right?
Back then you couldn't connect to the internet without installing third party tools, usually from an ISP on a disc. You had to install a browser, you couldn't embed hyperlinks in documents, there was no built-in way to get an email client..etcetcetc.
The original memo was not about building developer tools for the internet, but on taking a stand-alone operating system and shipping it with networking and hyperlinks and forming partnerships with ISPs and on and on.