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How to Beat Microsoft
IntellectualConservative.com ^ | May 28, 2003 | Rachel Alexander

Posted on 05/28/2003 8:35:42 PM PDT by az4vlad

It's really quite simple. If "techie" companies like Linux really want to bring down Microsoft's monopoly, they need to quit putting most of their energy into making "cool" software and focus on the four factors necessary to compete at Microsoft's level.

Lawsuits by the government and competitors against Microsoft have failed to break down Microsoft’s monopoly within the software industry. This has just reinforced the free market argument that the real way to beat Microsoft is through competition. Unfortunately, most of Microsoft’s most promising competitors have failed to do the four things necessary to beat Microsoft – sell easier to use products, at a cheaper price, using mass simple advertising, and address compatibility issues adequately. Microsoft can be beaten because it fails badly in one of these three categories, cheaper prices, and it is increasingly beginning to fail in the area of compatibility as it attempts to force its own standards on the industry.

Companies should look to AOL, the leader in Internet service, as a role model for taking on Microsoft. AOL successfully beat out Microsoft’s MSN for the top spot in internet access, with currently around 27% of the market in the U.S. and over 15% of the world market. AOL stays at the top by providing fairly cheaply the easiest-to-use Internet service along with easy-to-understand marketing and compatibility with Microsoft’s operating systems and other popular products.

Microsoft’s primary dominance is in its operating systems. What most software companies forget is that most consumers are overwhelmed by computer technology and the fast pace of ever-changing technology. While nifty little gadgets like Linux’s “menstrual calendar” – which comes bundled with some variations of Linux - may seem cool to techies, they make the Linux operating system appear more confusing and complex to the average consumer. Furthermore, this program in particular is offensive to women. Windowmaker, a desktop theme program that also is included with various versions of Linux, includes a picture of a nude woman as a desktop background. There are already enough compatibility problems between non-Microsoft operating systems and standard software products to scare most consumers away. Why scare them off even more? Furthermore, these types of programs are unacceptable in the workplace. Linux needs to clean up its act before it can become a serious player in the business world.

Nevertheless, open-source software such as Linux is preferable to proprietary software because it allows for optimal innovation, and makes it less likely that one company will dominate the market. Microsoft’s stinginess with making its products compatible with competitors’ products protects its dominance, but a smart competitor could use this to its advantage. Until that smart competitor figures out how to do this, incompatibility issues pose a huge barrier for open-source. Since most businesses and consumers are still using Microsoft products, open source software needs to be compatible with Microsoft’s products, at least for now.

Sourceforge.net offers thousands of open source products that are compatible on many platforms. However, most consumers aren’t interested in any products other than the most basic – operating system, email, web browser, and office applications. If companies truly want to be competitive with Microsoft, they need to focus on these essential products that the masses of consumers need, not obscure gimmicky programs. If a few software companies stopped their thrust towards creating obscure programs, they could focus more time and energy on improving compatibility issues with the primary core of products that most consumers are interested in. Open Office is showing promise as a true competitor to Microsoft’s Office suite. It is freely downloadable or it can be bought cheaply from Sun Microsystems as Star Office, and it is compatible with Microsoft’s software – it can read Microsoft’s .doc documents, which is a crucial area of compatibility.

Taking on Microsoft, however, primarily requires beating it at its core – operating systems. Linux, the open source operating system that is free for users and inexpensive for businesses, is touted as Microsoft’s most serious competitor. Linux has made some inroads into the server side, and currently holds around 15% of the server operating system market. However, Microsoft’s new .Net systems are already becoming extremely popular, and in the desktop operating systems arena, Microsoft systems still account for more than 90 percent of all sales. Linux’ share of the desktop market is currently at 2 percent, and is expected by some not to grow over 5 percent by 2006. Linux has made some progress with its “Lindows,” which is an easy to use version of Linux that looks and acts like Microsoft’s Windows, and is sold bundled with PCs sold at Wal-Mart starting at $199. Lindows, however, after a promising start, backpedaled on compatibility, retracting its promise to make Lindows compatible with all Windows programs.

Fortunately, a lot of software compatibility issues are going away on their own as Internet technology changes. Commonly used applications are migrating to the web instead of being sold as standalone programs. There are a few leading versions of Linux that have made their way into businesses and regular consumers’ desktops. Last year, the German government signed a contract with Linux SuSE, through the UnitedLinux group, to put Linux on computers at all levels of government. Numerous large companies have begun using Linux both as server software and on desktops.

It may not be glamorous to compete with Microsoft, but if software companies are serious about beating Microsoft, they are going to have to focus on the four key factors and drop the techie mystique. Only after they have beaten Microsoft, and have revenues to spare, should they consider promoting offbeat and often questionable programs of poor taste.

Rachel Alexander is an attorney for a software company in Scottsdale, Arizona.


TOPICS: Business/Economy; Constitution/Conservatism; Editorial; News/Current Events
KEYWORDS: antitrust; linux; microsoft; monopoly
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1 posted on 05/28/2003 8:35:42 PM PDT by az4vlad
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To: az4vlad
Companies should look to AOL, the leader in Internet service, as a role model for taking on Microsoft. ... AOL stays at the top by providing fairly cheaply ...

Clueless. Totally clueless

2 posted on 05/28/2003 8:39:45 PM PDT by narses ("The do-it-yourself Mass is ended. Go in peace" Francis Carindal Arinze of Nigeria)
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To: az4vlad
If "techie" companies like Linux really want to bring down Microsoft's monopoly.....

Doesn't even understand the basics.

3 posted on 05/28/2003 8:43:03 PM PDT by isthisnickcool (This tag line may be closer than it appears in the mirror.)
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To: az4vlad
And some of us use both Linux AND Windows, and are quite happy thank you very much...
4 posted on 05/28/2003 8:47:59 PM PDT by Chad Fairbanks (A blind man received a cheese grater as a gift - said it was the most violent thing he had ever read)
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To: isthisnickcool
So what's the stock symbol for Linux anyway? I'm interested in investing in the company; but, I'll need to know a bit more about the management team. Anyone got a mailing address for Linux? A phone number?

Have I laid it on thick enough? Or should I grab a shovel?

5 posted on 05/28/2003 8:48:53 PM PDT by Redcloak (All work and no FReep makes Jack a dull boy. All work and no FReep make s Jack a dul boy. Allwork an)
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To: Chad Fairbanks
Now, if we could just get the Linux Menstrual Calendar integrated with Microsoft Outlook's Appointments Scheduling System, I think scheduling meetings at work would be a lot more efficient and avoid a lot of unnecessary difficulties....
6 posted on 05/28/2003 8:51:44 PM PDT by Chad Fairbanks (A blind man received a cheese grater as a gift - said it was the most violent thing he had ever read)
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To: az4vlad
There's dumb, dumber, and Rachel Alexander when she writes about Linux.

Linux is completely cleaning MS' clock when it comes to server based applications. Only a durn fool would tie themselves to MS' .Net initiative.

7 posted on 05/28/2003 8:53:06 PM PDT by ikka
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To: Redcloak
So what's the stock symbol for Linux anyway? I'm interested in investing in the company; but, I'll need to know a bit more about the management team. Anyone got a mailing address for Linux? A phone number?

ETHER <---???

Hey, I swiped your "white" font color stuff. See below:

Formatting your hard drive. Please hold - Just kidding:)


8 posted on 05/28/2003 8:58:32 PM PDT by isthisnickcool (This tag line may be closer than it appears in the mirror.)
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To: az4vlad
Lawsuits by the government and competitors against Microsoft have failed to break down Microsoft’s monopoly within the software industry. This has just reinforced the free market argument that the real way to beat Microsoft is through competition.

What is this clueless, pollyannic tripe? Microsoft didn't get to the top of the heap by competition...it got to the top of the heap by short-selling, buying out and gutting the competition!

The author of that piece of rubbish really needs to do better research.

-Jay

9 posted on 05/28/2003 8:58:39 PM PDT by Jay D. Dyson (When the smoke cleared, the terrorist was over there...and over there...and over there...)
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To: az4vlad
I need a 32 bit DOS that uses memory linearly and will take windows programs. That way if something goes wrong I don't need to reinstall the world.
10 posted on 05/28/2003 9:01:11 PM PDT by RLK
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Comment #11 Removed by Moderator

To: az4vlad
If "techie" companies like Linux really want to bring down Microsoft's monopoly...

Linux is not a company.

It is an operating system published under the GNU open source license.

Nobody owns Linux. Anybody can burn CDs of the latest release of their favorite Linux distribution and sell them.

But since you can download Linux for free you have to sell them pretty cheap.

12 posted on 05/28/2003 9:22:53 PM PDT by E. Pluribus Unum (Drug prohibition laws help support terrorism.)
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To: E. Pluribus Unum
If you really want to nitpick, Linux is only the kernel (about a megabyte in size; the source code for it is around 20MB compressed these days)
13 posted on 05/28/2003 9:26:37 PM PDT by brianl703
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To: narses
Oh, good. I thought maybe I was mistaken in thinking that (1)AOL started way before MS in selling internet access, which was why it had a bigger share, and (2) that AOL lost so much money last year that I could have turned a better year by shutting down the company and paying all the subscribers a thousand dollars each to go away, making it a company that no SANE person would recommend as a business model.
14 posted on 05/28/2003 9:31:56 PM PDT by Richard Kimball
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To: DanzigGirl
Nah... That's Redhat. What about this Linux Co.?

Grabbing the snow shovel...

15 posted on 05/28/2003 9:44:12 PM PDT by Redcloak (All work and no FReep makes Jack a dull boy. All work and no FReep make s Jack a dul boy. Allwork an)
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To: az4vlad
The person who wrote this is a doofus. She hasn't a clue of the history of the software industry or microsoft in general. Several posters above noted her ignorance regarding 'Linux' being a company.

... sell easier to use products, at a cheaper price, using mass simple advertising, and address compatibility issues adequately. ...

  1. Microsoft products aren't easy to use. Have you ever tried navigating the weird, confusing and changing menus of microsoft software when you are trying to accomplish anything beyond the most basic of things?

  2. Cheaper price - waaaay back in the day, before they'd driven their competition into the ground by subsidizing their money-losing and clunky office software with the OS cash cow, microsoft was really price-competitive with their 'competitive upgrades and other such gimickry. Now that most of their effective competition has been either bought out or driven to the fringes they aren't so competitive any more price-wise. Why? Because when you a monopolist, you don't have to be.

  3. Marketing - microsoft has the premire marketing agency on the planet. They could sell ice to eskimoes and make them think they got a bargain in the process. They have in the past - and continue in the present - to market VaporWare that was, as its primary purpose, nothing but FUD to keep corporations waiting until the next big product release, and at the same time, not commit to a competitors product because of the huge promises being made by microsoft personnel.

  4. Compatability - microsoft products are seldom compatible with their own products! Everyone who tries to encourage others to leave the evil clutches of the beast is constantly barraged by cries of 'backwards compatibility!' and 'we must be able to access our old word docs and not lose any of the formatting information!', amongst other things. Those of you who have been around this industry long enough remember the massive compatibility problems that have endlessly plagued microsoft product upgrades. The new version of word wasn't able to deal well at all with files from the previous version and you had to go back and reformat the document after converting it to the new, improved version. Despite this, every other program out there is expected to completely and flawlessly convert a document format that has no publicly released specifications, or they get dinged on reviews as not being 'microsoft compatable'.

    I fully expect to see similar issues with the next format for documents to come out of microsoft. As usual, their marketing department is spreading its usual misinformation and lies. It is claimed by microsoft, that word docs will be an open XML format. Well, this would appear to be true until you actually look at things. Only the 'professional' (i.e. obscenely expensive) version of msOffice will produce this new 'open' format. Then, when you look yet closer at the situation, you discover that the xml format they are using is completely useless to anyone but microsoft from a compatability standpoint because they not releasing their schema! For those of you unfamiliar with XML stuff, if they don't release the schema for the format, it might as well be an encrypted document as far as formatting information is concerned. I've ranted enough on this, so I'll stop.

I just really do not understand why people are still willing to do business with the company after its proven and consistand disregard for its customers.

16 posted on 05/28/2003 9:49:49 PM PDT by zeugma (Hate pop-up ads? Here's the fix: http://www.mozilla.org/)
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To: narses
This has just reinforced the free market argument that the real way to beat Microsoft is through competition.

If MS continues on with their Palladium and DRM schemes, they're going to beat themselves. They're in fantasyland if they believe people will be flocking to that idea. It's the best argument for Linux I can think of.

17 posted on 05/28/2003 10:03:51 PM PDT by Reaganwuzthebest
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To: Chad Fairbanks
And some of us use both Linux AND Windows, and are quite happy thank you very much...

Or did/were until a reinstall of Mandrake 9.1 smashed the master boot record. So much for dual booting ...

18 posted on 05/28/2003 10:11:53 PM PDT by KayEyeDoubleDee (const vector<tags>& oldTags)
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To: az4vlad
Unfortunately, most of Microsoft’s most promising competitors have failed to do the four things necessary to beat Microsoft...

What most application competitors have failed to do is produce products that integrate to the Microsoft OS because Microsoft hides API features from competiters. 

It makes no sense whatsoever, from any perspective of OS product competition, for an OS to have hidden APIs - running applications is the primary purpose of an OS. Hidden APIs only make sense when the OS is a monopoly product (OK) and is being used to kill application competition (not OK).

Severing the application business from the OS business would have restored competition to both the application and OS markets in a way that would cost Microsoft nothing but its ability to stifle competition.
19 posted on 05/28/2003 10:24:35 PM PDT by Russian Sage
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To: az4vlad
Microsoft can be beaten because it fails badly in one of these three categories, cheaper prices...

I purchased Office XP for $99. It seemed pretty cheap to me. Windows XP came on my computer. Also, apparently, cheap. Perhaps this lawyer defines "cheap" differently? You never can tell with lawyers...

20 posted on 05/28/2003 10:46:31 PM PDT by exDemMom (Tax cuts for the rich (i.e. working people) NOW!)
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