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Technology Stocks : Intel Corporation (INTC)

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Nov 14 9:30 AM EST

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To: Tony Viola who wrote (91840)	11/7/1999 1:50:00 PM
From: Amy J	Read Replies (1) of 186894

Thread and Joey, the FOF listed many complaints, and with that, a person could make a guess at which practices might possibly change (if at all). The following is not what the FOF said. Just my extrapolations/ interpretations (which may be incorrect) of the FOF's complaints and how these complaints might be converted into requirements: - cannot disallow OEMs from boot-sequence and autostart - cannot use as an incentive, a lower OS price point for the OEMs who do not advertise a competing OS - cannot sell an older product version at such a high price that it essentially forces OEMs to purchase for bundle the newer version of the OS - make the cost of an OS upgrade equally as painful as the cost of porting software to a different OS to ensure an equal footing (or something like that) - FOF complained about MS investing in amounts which were not constrained by a product's revenue, in order to ensure their software tools are used (rather than a competitor's tools which supports cross platform) - Intel could more freely develop platform level interfaces (which could draw support away from interfaces exposed by Windows) - It "allows Intel to increase its pace" of software innovation for purposes of promoting advanced features of its chips beyond the current limitations imposed by waiting until the next Windows release - Allows Intel to more freely sell API/DDI software to OEMs - FOF complained about the "Preferred ISV" status which allows certain ISVs (but not others) access to important APIs before the release of the OS - disallow lower prices to OEMs who ensure machines are powerful enough to run WinNT Client - modify the licensing program to allow for 2 OS licenses so a user isn't forced to purchase a new OS upgrade when purchasing a new PC - decouple bundles so users are not forced to purchase new OS software upgrade when purchasing a new PC machine - there was a long discussion on Java run-time in Windows (Sun's version vs Microsoft's version, etc.) - eliminate different pricing to OEMs which is currently dependent upon which vendors preserve the application barrier to entry - impose rules on Win licensing so it doesn't restrict OEMs from promoting software which weakens the application barrier to entry - change the piracy policy which limits the # of PCs an OEM may sell without an OS installed. FOF made the assumption users were reluctant to upgrade to newer versions of the OS, and it said the bundling and piracy policy imposed upgrades on the consumer - restrict upgrade prices (a report indicated Win 98 could have been $49 instead of $89) - set the price for Windows by comparing it to other OS price points - the FOF mentioned that cloning the 32-bit Win APIs would be a costly way to allow a new competitive entrant into the market - the FOF said $100M annual dollars are spent on ISV marketing (restrict ISV marketing) - there was a big section on IAP, OLS, ISPs, etc. which boiled down to the FOF complaining MS had controlled what gets launched, etc. - the judge closed the report with a discussion on how investments are not being made on innovations which might compete with Microsoft The above is not what the FOF said. Just my extrapolations/ interpretations (which may be incorrect) of the FOF's complaints and how they might be converted into requirements. Now here's my opinion on what I think will happen: I believe Microsoft will be asked to change their pricing policy and will be asked to release all APIs to all ISVs at the same time. Amy J

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