Microsoft Dilemma Essay, Research Paper

The Microsoft Dilemma

During the early 1980 s, a Seattle based company named Microsoft began it s concern run. Lead by a immature computing machine coder, Bill Gates, Microsoft would shortly go the largest computing machine package shaper in the universe. This rubric did non come without a heavy monetary value. Many of the corporations that contributed to Microsoft s domination of the package market are now registering cases claiming unjust concern patterns. Besides these corporations, the U.S. authorities and 20 other provinces are besides registering anti-trust cases claming Microsoft as a monopoly. With the onslaught of cases, Gates still claims, Microsoft s actions and inventions were just and legal, and have brought enormous benefits to consumers our industry and to the United States. ( Goetz 56 ) Weather or non Microsoft is a monopoly is still being disputed by the tribunals, yet, we can at least understand how Microsoft reached this point through the corporations that have filed suits against Microsoft.

One of the first major undertakings that started Microsoft s rise to the top was an operating system called DOS. Gates merely copied the DOS plan and configured it in a manner to do it more user- friendly and renamed it MS-DOS. Not merely was the MS-DOS plan more user -friendly, it besides made an easy environment for tackling all the treating power a computing machine had available ( Michael-Hayes 45 ) . This procedure made the MS-DOS plan faster and more efficient. Soon after the release, the plan was used as the primary plan system for IBM computing machines.

With the positive impact of MS-DOS on Microsoft gross revenues, Bill Gates continued his success. He started another undertaking which would created a graphical interface which gave users, both novitiate and amateur, speedy and easy entree to their files ( Garett 27 ) . Gates would shortly name this new plan Microsoft Windows. After the release of Windows, Microsoft was literally catapulted to the forepart of the computing machine package plan market. The plans offered in Windows were easier and quicker to entree. Microsoft was able to unite single plans such as Word, Access and Excel into one quick and easy to utilize plan. The deficiency of competition would assist Microsoft concentrate more attending on spread outing the Windows plan due to the domination of their merchandise.

Microsoft s laterality in the package industry helped them concentrate much of their attending to detonating markets. Their following measure was to unite the Microsoft plan with an Internet browser, which would finally be the basis for the bulk cases against Microsoft. Before Microsoft offered their Internet browser ( Internet Explorer ) with Windows, consumers were required to purchase a browser individually if they wished to acquire onto the Internet. One of the companies that offered this Internet entree was Netscape. In 1994, Microsoft proposed a trade, which would absorb Netscape into the Windows plan ( Bell 12 ) . Microsoft s proposal would supply Netscape with information that would assist plan a plan that would run swimmingly with the Windows plan. In exchange for the information, Microsoft would put in Netscape and take a 15 to twenty percent interest in Netscape. Microsoft would besides have a topographic point on Netscape s board of managers and licencing privileges to their new engineering. This trade would finally halt the competition of Internet browsers. Since this new engineering would give Microsoft licensing privileges, Microsoft would add it to the Windows characteristics and give it off for free ( Moschella 67 ) . Microsoft denies that their aim was to halt browser competition with Netscape. Shortly after the offer, Netscape denied and Microsoft shortly created another version of the browser called Internet Explorer, which it added to its Windows plan. Netscape has since filed a case against Microsoft claiming that Microsoft s offer was in misdemeanor of the Sherman Act. This act prohibits companies from utilizing their size and power as a monopoly to spread out their places and take clasp of new markets ( Cornell Law ) . Along with Netscape, many computing machine shapers are besides registering cases against Microsoft claming similar misdemeanors.

The Compaq Corporation, which is one of the largest computing machine manufacturers in the state,

has besides joined Netscape in the case. After Netscape s case, Compaq considered utilizing the Netscape browser in their computing machines instead than the Internet Explorer. Since Netscape was Microsoft s chief competition in the browser market, Microsoft threatened to halt selling their version of the Windows plan if Compaq decided to utilize Netscape. The branchings of this action would lay waste to Compaq s net incomes. Rather than sacrifice net incomes, Compaq decided to utilize Microsoft s Internet Explorer. Compaq s dependance on the Microsoft Windows plan limited Compaq s options that gave Microsoft an advantage. These restrictions of the package industry prompted Compaq to register charges against Microsoft impeaching them of go againsting the Sherman Act. Besides Compaq, many other computing machine shapers besides shared the same destiny.

The Apple computing machine company besides shared similar experiences as Compaq. Since Apple s package is different from other computing machine shapers, Microsoft designs a particular word processing plan to run on their computing machines. This Microsoft Office plan, which is similar to the Windows plan, constitutes about 90 per centum of gross revenues for Apple. The release of the Internet Explorer has besides caused jobs for Apple. As with Compaq, Apple was besides sing utilizing the Netscape Navigator browser for their default. Microsoft s menace to halt selling the Office plan if Apple used the Netscape Navigator browser besides prompted Apple to utilize the Internet Explorer as a default. Problems with Microsoft non merely resided in the computing machine industry, but besides spawned to Internet plans every bit good.

Sun Microsystems, which provides high public presentation package along with other services, besides filed a case against Microsoft claiming copyright misdemeanors. Before the case, Microsoft worked closely with Sun to develop an Internet package plan ( Java ) that read a bulk of Internet files ( Goetz 55 ) . Although Microsoft had a contract with Sun to non utilize the plan in any of the Windows plans, Microsoft had differing thoughts. Rather than utilizing the Java plan developed by both companies, Microsoft created another plan similar to Java which Microsoft renamed Java ++ . The add-on of Java ++ to the Microsoft merchandise line was made due to the detonation of the Internet and capablenesss of the plan. Once word of the Java ++ plan reached Sun central offices, so did the cases. Sun claimed that Microsoft was in misdemeanor of copyright understandings of their contact. Misdemeanors of these contract understandings shortly went to a federal tribunal to make up one’s mind. Sun took a annihilating blow when the tribunals decided that Microsoft was merely in misdemeanor of the contract understanding instead than a copyright misdemeanor ( Penfield 33 ) . This put Microsoft at an advantage since they would still be able to utilize facets of Java ++ in the Windows plan.

Microsoft s usage of other corporations and the singularity of their merchandise hold helped them derive a important part of the computing machine package industry. These corporations are besides the same concern spouses that are registering cases. Many of these concerns will still trust on Microsoft even after these cases are settled. The power of Microsoft s merchandise has aid shaped the computing machine industry, even though their methods of accomplishing their position is questionable. It is merely up to the tribunals to make up one’s mind if these methods were in just and good gustatory sensation or for monopolistic intents.

Plants Cited

Bell, Allison. No Hostages in Browser War. National Underwriter Life & A ; Health-

Cornell Law II. hypertext transfer protocol: //www.law.cornell.edu/topics/antitrust.html.

Goetz, A. Martin. The Government has to Stop Microsoft Now. Computerworld,

June 19, 1995 v29 n25 p107.

Michael-Hayes, Garett. Windows 2000 directory additions land on NetWare, Unix.

Computerworld, Dec 14, 1998 p83 ( 1 ) .

Moschella, David. Few Escapes for Netscape. Computerworld, Jan 19, 1998 v32

n3 p117 ( 1 ) .

Penfield, T. Jackon. Microsoft Enjoys Monopoly Power. Time, Nov 15, 1999

v154 i20 p60.

Plants Consulted

Journal of Financial Economics hypertext transfer protocol: //www.elsevier.com/locate/econbase

Tech Law Journal hypertext transfer protocol: //www.techlawjournal.com/courts/sunwvmsft/Default.htm