Microsoft

1
How it all started...
Dream of having a PC on every desktop
1975

•Founded the company.

•Sold BASIC interpreter for ALTAIR 8800
•First “only software” company
 1980

•IBM entered the PC market

•MS made a deal with IBM
•MS released MS-DOS for IBM and other IBM clone
makers in 1981
•MS-DOS soon ran on over 150 million PCs
•The story of domination begins...

1975
 1984
•Apple released Macintosh
•First commercially successful GUI system
•MS saw it as a danger and an opportunity
•Apple sold the hardware and software together
•MS only sold the software

1975 1980
 1985
•MS released Windows 1.0
•Extension to MS-DOS
•MS allowed to install their software on the
hardware of user’s choice

•MS viewed that the future is GUI

•MS copied Apple

1984

1975 1980
Graphical user interface (GUI) of Macintosh
Graphical user interface (GUI) of Windows
 1990
•MS released Windows 3.0 and MS Office
•First widely successful version of Windows
•Both quickly became dominant
•Novell filed a lawsuit claiming that
Microsoft left parts of Windows
undocumented in order to gain a competitive
advantage.

1984

1975 1980 1985

 1995
•Windows 95 was released
•Incorporation of various new technologies to
support the era of internet.

•Introduced IE through Windows Plus! pack

•MS abused its monopoly
•Eventually landed up into lawsuit

1984

1975 1980 1985 1990

 Twenty year timeline of MS

1984

1975 1980 1985 1990 1995

2
 Competitors

Linux Apple Sun Microsystems

 Competitors

Google Chrome Apple Safari Firefox

 Figures that matter

Net Revenue in US $ in billions for 10 years of MS

3
 Monopoly

Monopoly exists when a specific individual or an enterprise has sufficient

control over a particular product or service to determine significantly the
terms on which other individuals shall have access to it.
Market Share (OS)
Market Share (Browsers)
 Microsoft’s Defense
•Price changes-consequences of simplification of licensing agreement.
•Richmalen-’Microsoft not taking advantage of its dominance of the OS market’.
•License agreement allows MS to modify Java.
•Microsoft’s aggressive strategies do not spell Doom for its competitors.
•Gates saw Netscape’s Navigator and Sun’s Java as threats to windows.
4
The Real Face of Microsoft
Netscape Navigator
Screw sun, cross platform Java will never work.
Let’s steal the Java language.”
- An engineer of MS
 MS released .Net framework,
which closely works the same
way Java works

C#
Along with the .Net
framework, MS created a new
programming language, C#,
which has a striking
resemblance with JAVA.
language
5
The Trial
 Oct’97

DOJ sues Microsoft

 May 18, 1998

Biggest antitrust assault

DOJ sues Microsoft

Oct’97
 Oct 19, 1998

The trial begins

DOJ sues Microsoft Biggest antitrust assault

Oct’97 May 18, 1998

 Nov 5, 1999

MS Abuses monopoly

DOJ sues Microsoft Biggest antitrust assault The trial begins

Oct’97 May 18, 1998 Oct 19, 1998

DOJ sues MicrosoftBiggest antitrust assault The trial beginsMS Abuses monopoly

Oct’97 May 18, 1998 Oct 19, 1998 Nov 5, 1999

 June 1, 2000

Jackson’s verdict
 June 7, 2000

Jackson suggests split

Jackson’s verdict

June 1, 2000
 Aug 2001

Microsoft’s appeal

Jackson’s verdict Jackson suggests split

June 1, 2000 June 7, 2000

 Aug 31, 2001

DOJ’s order

Jackson’s verdict Jackson suggests split Microsoft’s appeal

June 1, 2000 June 7, 2000 Aug, 2001

 Timeline of trial

DOJ sues MicrosoftBiggest antitrust assault The trial beginsMS Abuses monopoly

Oct’97 May 18, 1998 Oct 19, 1998 Nov 5, 1999

Jackson’s verdict Jackson suggests split Microsoft’s appeal DOJ’s order

June 1, 2000 June 7, 2000 Aug, 2001 Aug 31, 2001

6
 Remedies

-What remedy makes sense in this complicated

case?Bad ActsRestore CompetitionAvoid "killing the
goose that lays the golden eggs“Three possible remedies
a fineconduct restrictionsstructural relief.
1. FineLarge finespecify the types of undesirable conduct
2. Conduct restrictions“Don’t engage in conduct that places significant
restrictions on third parties”hard to enforce difficult to predict today
3. Structural remedy relies on the forces of competition to remedyInstead of
creating several operating companies, create one operating companies
7
The future...
Open Standards
 Open Standards

Google Chrome OS
 Open Standards

Google Chrome OS

Apple Webkit
 Open Standards

Google Chrome OS

Apple Webkit

GNU Project
Open Standards

Google Chrome OS

Apple Webkit

GNU Project
Leading companies such as

are going the open way...

 •Believes in proprietary
software

•MS will not be able to push its

products

•MS has already lost market

share in smartphone business
 The way Microsoft has lost their substantial market share in the smartphone
business by not adopting the open standards, they may lose their market share in
the PC software business too.
Final words...
Foundation of domination
Macintosh
Windows 1.0
 To create a new standard, it takes just not a little bit different, it takes
something thats really new and captures people’s imagination and the
macintosh, of all the machines i’ve ever seen, is the only one that meets that
standard.

- Bill Gates
 Ruthless Microsoft

Was that really wrong to bundle a web browser into the operating system?
They didn’t stop just there

to
 Some way outs

•Collaborate with other companies rather than competing

•Open source/open standards

•Focus on developing in one direction only

Thank you for your time...