How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 478.53

-1.0%

Dec 12 9:30 AM EST

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To: John F. Dowd who wrote (34720)	11/24/1999 3:28:00 PM
From: nommedeguerre	Read Replies (2) of 74651

John, "The point that is being made is that IBM, a then much larger company, was a direct software competitor of MSFT and certainly had their own built in alternative and was a direct competitor of MSFT in the O/S software market. " This still does not explain how selling licenses of Windows will hurt MSFT. It would boost IBM's HARDWARE sales, an area in which Microsoft definitely does not compete directly; how does shipping a PC with Windows boost the sale of any other OS? That is Microsoft's whole strategy: lock the end-user into Windows regardless of platform. This is why they are paying people to put WinCE on everything. IBM is hardly a bad credit risk. What did they owe 10's of millions for? I don't remember. Businesses this large usually fail to pay for contractual reasons (i.e. Microsoft failed to live up to a contractual agreement hence the contractual payment was not made. This is the way corporations operate, has nothing to do with the inability to pay.). The processors in the IBM PC's are Intel or Intel-licensed compatibles yet IBM makes the PowerPC and other processors. Does IBM pay more per processor to AMD or whomever simply because they are a competitor in the processor market? Would Firestone refuse to sell Ford tires simply because Ford owned Pirelli? Cheers, Norm

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