The sky's not falling for MS (NNN May 16, 1998)

If you've read Immanuel Velikovsky's "Worlds in Collision" you are familiar with his view of the origin of the fable, "The sky is falling!"

Velikovsky's theory was that the sky really has fallen in historical times, in the form of collisions or near-collisions of comets and other celestial bodies with the earth, resulting in worldwide catastrophe. Now Microsoft is doing a pretty good imitation of Chicken Little, trying to persuade us that the continuation of life as we know it depends on the unhampered release of Windows 98, which is threatened by antitrust restrictions.

Microsoft insists that their "innovative" products benefit customers and life generally, and are responsible for all that is good in the world, with the possible exception of bringing in better tv reception (and they're working on that).

For those unfamiliar with PC history, the following tidbits may put things in perspective. Microsoft did not invent the personal computer, the PC operating system known as DOS, nor the graphical user interface (GUI), of which Windows is the most common example. Xerox created the GUI, by which Apple's founders were sufficiently impressed that they emulated it, in turn "inspiring" Microsoft.

MS-DOS developed when IBM, bound by consent decrees stemming from its monopoly status, and thus forbidden to bundle its own software with its dominant hardware, went shopping for an operating system for its 1st PC. Bill Gates' mother pointed a friendly IBM exec to her son's fledgling firm, Microsoft. Not having an operating system to sell, Gates hurriedly bought one from Seattle Computer Works, and licensed it to IBM. With IBM's imprimatur, DOS became the dominant system, with which all products had to be compatible.

Microsoft learned the monopoly game of FUD (fear, uncertainty and doubt) at the feet of the industry's former master bully, IBM. MS took up where IBM left off, as antitrust law restrained IBM's killer instincts. Thanks to their IBM-granted monopoly, Microsoft was positioned to enforce contracts requiring every PC sold to include the cost of MS-DOS, and later Windows, whether or not the PC had DOS or Windows installed. In essence, a Microsoft "tax."

Competing operating systems, such as Digital Research's DR-DOS, and later IBM's own OS/2, more technically advanced and stable than Microsoft's systems, were squeezed out.

Gates' congressional testimony stressed that Microsoft's "innovation" and commanding position kept prices down. Most software and hardware prices have indeed fallen dramatically in recent years, and continue to do so. Most, that is, except Microsoft products, which are all but required to be on every PC. In 1985 Windows was priced at $99; in 1990 a full version of Windows 3.0 cost $149. The forthcoming Windows 98 is priced at $209 ($109 for an upgrade). Brilliant business strategy, but hardly "innovation keeping prices down." Users who imagine that Windows is "free" because it comes installed on new PCs must also be grateful to the IRS when they get a refund on their income taxes.

On that basis I hereby offer a free lunch with every paid subscription to NNN. Of course, there's a small shipping and handling fee of $10. Send cash to my personal attention.

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Jerry Maizell

nnnews@ibm.net
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