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Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator

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To: Keith Hankin who wrote (14170)11/17/1997 4:00:00 PM
From: Alan Buckley  Read Replies (1) of 24154
 
Keith, you are contradicting yourself.

[First you say: The economics on Unix systems is very different. It would cost a lot more to provide these applications under UNIX than under MSFT OSes. Moreover, the Unix versions of these products is often not as good as the MSFT versions, and is often much more out-of-date.]

[Now you say: Most of the "superiority" MSFT has over the competition is simply a reflection of the monopoly status MSFT has. It bears almost no relationship to any value that MSFT has brought...]

MSFT is expanding into the Unix markets by solving important problems Unix vendors never did, namely the high cost and lack of applications due to incompatibility among vendors. This is of critical importance to many customers yet the Unix vendors for years have chosen to ignore it. In the next few years we will see how serious this blunder was.

Customers buying NT over Unix *know* they are locking themselves into MSFT for an extended period but it doesn't stop them. Why? Because they believe MSFT will deliver the apps for NT, while before they were locked in anyway and still didn't have the apps.

This is a rational *choice* based on value delivered not a gun-to-the-head decision. Vendors that ignore their customers over a period of time inevitably lose the ability to compete. The capital wasted on them will return in start-ups providing better value to customers and better competition to MSFT. If MSFT makes a mistake of similar magnitude the free market will replace them just as quickly, but until then they've earned the right to call the tune.

Check out the recent post about Novell's fade. A company with incredibly dominant market share in an exploding industry just 8 years ago, but they made a series of horrible business decisions and failed to ship compelling products. If MSFTs products are as unsubstantial as some think they won't last long either, but I'd have to hear it from the consumers, not the (non-)competitors.
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