Battered, Microsoft keeps throwing punches
"Reconsidering Microsoft" is the latest entry in our series of ongoing special reports that address the strategic decisions facing IT managers today. This report examines the various forces that influence a fundamental issue that many IT managers are grappling with: What enduring role should Microsoft play in your company's future?
Ironically, the Gartner Group draws attention to the fact that perhaps the primary force in this dynamic is Microsoft itself. Indeed, Microsoft may be its own worst enemy. Heading Microsoft's list of public relations nightmares is the seemingly never ending string of security breaches allowed by its Web serving, e-mail, and operating system software. Although Microsoft has often released patches prior to the most notorious breaches, the damage is done. Bearing the brunt of these security lapses, Microsoft is scrambling to prop up its product line and shake off the stigma (deserved or not) of Swiss cheese security. At the same time, security rises to the top of every IT manager's list of concerns--especially with the highly interconnected and integrated promised land of Web services waiting in the wings. With such a current state of affairs, it won't take much coaxing to heed Gartner's advice.
But security isn't Microsoft's only problem. As the company prepares for a future where software is rented instead of bought and the DOJ could effectively become its CTO, Microsoft has put some stakes in the ground that are alienating yet another influential force: its customers.
Microsoft, claim many Tech Update readers, is increasingly growing out of touch with their needs. Readers have cited recent changes to licensing policies, product activation schemes, the inability to uninstall Internet Explorer, removal of the Java Virtual Machine, and discontinued support for Netscape plug-ins-among other complaints. Microsoft appears to have become quite comfortable throwing down the gauntlet, believing perhaps that it has achieved enough critical mass to make its own technologies defacto standards. Customer response might eventually validate this business decision, or prove it to be a costly miscalculation.
Government smackdown
Of course, plenty of other forces are at work to loosen Microsoft's grip. Microsoft might be able to placate alienated customers before they jump ship, but the government (the DOJ, some states, and the EU) could easily choose to tighten the nooses they've tossed around Microsoft's neck. With preemptive strikes that virtually goad governments into action, such as its early release of Windows XP, the company seems hell bent on staying one step ahead of-or outside-the law.
Sooner or later, however, justice in some form will catch up with Microsoft, and the final outcome is anybody's guess. Potential remedies range from court-ordered changes of code that's already in customer's hands to burdensome consent decrees that limit Microsoft's development ambitions. No wonder many customers are delaying upgrades.
As if the heat from feds isn't enough, Microsoft also has to sweat over the efforts of its competitors. Sure, there are the usual outspoken nemeses: Oracle, Sun, and AOL-Time Warner. But a 900-pound gorilla has been tiptoeing around the fracas. To date, IBM has adroitly avoided duking it out with Microsoft in public, and while Big Blue never quite confronts Microsoft head on, it's no secret what a formidable threat it is. With huge investments in many of the same technologies that Microsoft is banking on (operating systems, application servers, Web services, developer tools, etc), IBM may soon be positioned to unleash a fury the likes of which Microsoft has never seen. IBM may very well prove to be Linux's knight in shining armor; and Linux, in due time, may prove to be precisely what IT managers need to establish a haven from some of Microsoft's proprietary technologies.
Don't overlook accomplishments
In preparing this special report our vision was far from myopic, so I hasten to note the astounding contributions that Microsoft has made to the business technologies that we all rely on. In spite of all the forces working against Microsoft-accusations justified or not, and its own missteps such as abusing its monopolistic position-you probably don't have to look far to see the company's products, which stand as testament to its success. And many of you will continue to buy more Microsoft products.
Twenty years ago, we marveled at the potential of the PC, especially compared to big-iron behemoths that often labored at one task in large, specially equipped rooms. A desktop machine that was easy to use, networkable, plug and play, running at gigahertz speed, and with a full complement of business productivity software for less than $1,000 was simply inconceivable. But, that happened and agree or not, Microsoft, among other companies (Apple, for instance), played a significant role in its development. Whether the company can continue to push the PC envelope remains to be seen. If it falters and another company picks up the slack, you should reconsider your purchasing strategies. But if you end up opting for Microsoft-and many of you will-it won't be because someone is forcing you to, it will be because the product offers value for your company.
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