Pete Hardie wrote:
> You are forgetting the barrier to entry that a 94% MS OS world created - if
> I wanted to write and sell software and profit, I'd need to write it primarily
> for Windows - and if I started to show a real chance at a profit, MS could (did,
> in some cases) easily create their own version, entwine it with the OS so that
> they could claim it a required part ot the OS, and sell it at a loss until I
> went out of business. MS had a *real* monopoly.
Did MS achieve that dominance by forcing people to use their software
or just being extremely competitive. I believe more the later than the
former. Please reexamine your premise. You limit yourself to a very
simple and increasingly irrelevant business model. Operating systems
and hardware are becoming commoditized rapidly. All you need to do is
develop your software to be platform independent - something I've been
doing since 1991 and quite simple to achieve today, especially with
Java, for example. Now you're not tied to any particular OS or
hardware platform. You've got a great competitive advantage that MS
cannot (or will not) afford to chase after.
Good software is much more like architecture than automobile
assembly. After a point, throwing more people at a project only
prolongs it and makes it worse. Microsoft has never been particularly
innovative in their development. What they have been is better than
most of their competition in delivering something their customer base
will use. This really isn't so difficult to do but it does speak more
about the general state of the competition out there. Name some
companies that Microsoft ruined and I'll point out how they pretty
much did it to themselves or ended up benefiting. Your example of
Microsoft entwining a successful concept into their OS and giving it
away is perfect. The first I can think of is the Stacker case which
Microsoft clearly lost. The second is Netscape which was a company
that was giving their product (the browser) away themselves!!! I never
paid a penny for my Netscape Navigator. Netscape's loss of dominance
was Netscape's fault and Microsoft (wisely) took advantage of their
weaknesses. No monopolistic deeds required.
Revenues from software do not only come from software licenses. For
big companies especially, support fees are often a greater source of
income. The last Oracle financial report I read (a few years ago)
listed related services as a greater source of revenue than their
software sales. Look at RedHat's business model. The Open Source
movement is an extremely competitive model that Microsoft simply has
no realistic response to yet.
> > To demonstrate the stupidity of our Justice Department and their
> > inability to understand what they're playing with, look at their
> > split-up proposal. Two companies, one doing OS' and one doing
> > applications. Well, has anybody noticed that Microsoft is a major
> > player in a lot of other businesses? They are one of the world's
> > largest ISPs, they own a major part of MSNBC, they're in the satellite
> > communication business, they sell mice and strangely shaped keyboards.
>
> And in none of those businesses are they controlling 94+% of the business.
> ANd they don't require I buy a TV preloaded with MS-produced software to tune to
> MSNBC, or that prevents me from tuning to WTBS.
But you (and the Justice Department) miss the point. Where do all
these other "side businesses" end up? I was simply pointing out that
MS does a lot more than sell Windows and Microsoft Office and that the
proposed deal completely ignores this fact. FWIW - I expect that there
are (or will be) features in the MSN ISP that will only be accessible
from a Windows based box. And don't get me started with those funny
little keys on those keyboards they make! Don't these fall within the
realm of the evil behavior that Justice is trying to end? Is it
immoral, illegal, or just plain dumb? Maybe none of the above - but it
certainly isn't addressed or understood by a giant government entity
that thinks it knows best and is willing to force its will on us (and
poor little Cuban boys it seems) - now that's dangerous; much more so
than Bill Gates could ever hope to be.
regards & later,
Ben Scherrey
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