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Technology Stocks : How high will Microsoft fly?
MSFT 478.52-2.8%Dec 10 3:59 PM EST

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To: cheryl williamson who wrote (8403)6/11/1998 3:46:00 PM
From: Hal Rubel  Read Replies (1) of 74651
 
The Existence of Arrogant Disrespect Directed Against Microsoft

RE: "Microsoft Derailed"

"Many of the markets the behemoth wants to play in involve consumer goods and content, fields in which it has displayed a leaden touch. Microsoft's strategy appears to be create smaller versions of existing bloated products--an anti-innovation policy if ever there was one. Lately, it has been offering "incentives" to consumer-electronics companies in an effort to get them to swallow Windows CE, the much-criticized, several-megabyte, "slimmed down" version of the company's enormous desktop operating system. These offers may lure cash-strapped companies, but will consumers buy?

Microsoft's theory appears to be that people love Windows and can't wait to see the same interface on every device imaginable. But how many people really love Windows? Sure, millions use it, but what if they had a true alternative?

And despite all the talk about Microsoft's deep pockets, cash--whether tossed at consumer-electronics companies or poured into development--doesn't solve all of life's problems. The huge sums Microsoft spends on R&D--$2.6 billion targeted for 1998--would seem to provide it with the technical resources required to move in any direction. But the company has never developed the kind of excellence seen at, say, Bell Labs, and its products have the technical aesthetic of a Chevrolet Suburban. No one will ever accuse Windows of being inspired or elegant"

Cheryl, this sort of thing would have to be 1) true, 2) widely acknowledged, and 3) run on uncorrected by Bill Gates for it to eventually affect how high Microsoft will fly.

Hal
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