October 13, 1997
The Storm Headed Towards Redmond
By Bob O'Donnell
A storm is brewin' over the Pacific Northwest, and it's about to unleash itself on the
quiet little town of Redmond, Wash. Of course, the town's residents are accustomed to
rainy weather and often find themselves at the center of some pretty heavy storms. But the
one starting to appear on radar has been building strength for a long time now and may
pack the power of El Nino.
In Microsoft's case, the El Nino headed toward it isn't a force of nature, but a
growing sentiment whose impact could be just as devastating. More businesses, governmental
agencies, and consumer watch groups are casting a critical eye toward the software
behemoth's staggering degree of power in high-tech industries and saying,
"Enough." Last week's announcements of Sun's lawsuit against Microsoft over the
licensing of Java and Ralph Nader's investigations into the company's business practices
are just the latest examples in what seems to be a growing tide of developments intent on
curbing the company's influence.
None of this is totally new, of course. Microsoft has been a common target of
criticisms leveled by smaller software companies and others in the computer field for
years now. Microsoft-bashing is so common, in fact, that it's starting to become
unfashionable. The Federal Trade Commission (FTC) has investigated the company before, and
the "look-and-feel" suit with Apple several years ago bears similarities --
although inverted -- to its new spat with Sun. (Apple alleged Microsoft had copied the
Macintosh too closely, and Sun contends that Microsoft hasn't adopted Java fully enough.)
Also, the Sun disagreement, which is essentially contractual, could be settled quickly if
Microsoft simply removed the 100%-compatible logo from its products. The implications of
such a move would be wide- and far-reaching, but it could turn the lawsuit into a
nonissue.
Still, the climate has changed. Momentum seems to be building against the company's
expanding reach and influence. (For that matter, the recent FTC investigation into
Microsoft's ally Intel suggests that the federal government is starting to look at all
aspects of the high-tech industry with a more discriminating eye.) The critical
difference, I think, is the Internet, a market category that no single company dominates
-- at least, not yet, and many people want to keep it that way.
For its part, Microsoft is doing everything it can to exert its influence on the Net.
Obviously, giving away its Internet Explorer 4.0 browser and the Internet Information
Server (not to mention fully functioning betas of its FrontPage 98 Web-site building
application) goes a long way toward achieving that goal. Not surprisingly, however, those
same policies have drawn the ire of competitors and now the attention of several states'
attorney generals. Again, Microsoft has been subject to these kinds of investigations
before and successfully dodged any serious prosecution. But I think as the importance of
the Internet continues to grow, more people are realizing that there's a lot more at
stake. Consequently, I believe Microsoft will be facing a much tougher battle from these
and any subsequent investigations or legal challenges to its business practices.
Now, to Microsoft's credit, none of this would matter if it didn't make good products.
But the fact is, it does: I've been using betas and now the final shipping version of
Explorer 4.0, and it's a darn good browser. (I also built my new Web site with a FrontPage 98 beta, and it
too, is an excellent tool). Even more important, all its stuff works together well as a
system. As a direct result of compatibility, I and millions of other users and IS managers
often choose Microsoft products because we know they will work with the other Microsoft
products we own. (This is how the company "embraces and extends" its customer
base.)
Practically speaking, given all the ridiculous incompatibilities we face and the time
we waste trying to make things work, this is a very real benefit -- one I would not look
forward to giving up. But this entangled web of codependencies also lies at the crux of
the problem. Sun's lawsuit over the licensing of Java and investigations by the FTC, Ralph
Nadar, and state attorneys may all have very different, very specific motivations behind
them, but I think the larger issue inspiring them all is the growing sense that things
really have gone too far.
In the end, the incoming storm may weaken and produce nothing more than a few scattered
sprinkles on Redmond, but signs on the radar suggest that a major storm is on its way. If
it hits, we'll all feel the impact.
©
Copyright 1997, by InfoWorld Publishing Corp., a
subsidiary of IDG Communications, Inc. Reprinted from InfoWorld,
155 Bovet Road, San Mateo, CA 94402. Further reproduction is prohibited.
