MSFT Internet Explorer vs. NSCP Navigator Message Board

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Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator

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To: Keith Hankin who wrote (14208)	11/18/1997 2:10:00 PM
From: Alan Buckley	Read Replies (2) of 24154

I understand the "history of the economics of computer systems" just fine, but I'm not stuck thinking the way it's been is the way it will always be. NT didn't even exist 5 years ago. Unix vendors could have lowered their prices then, established a broader market for their products, and achieved economies of scale similar to what MSFT now enjoys with NT. But they didn't, they chose to maintain their high prices and blow off MSFT as "not understanding the server business". Well, it looks to me like MSFT used their $1B of NT R&D money wisely and added compelling new value and choice in the server business. As with any company that succeeds in proving the conventional wisdom false, they are reaping good returns. NOVL had a PC networking market share equivalent to MSFTs OS share just a few years ago. Why wasn't "the rest self-creating" for them? Because it's not as important as better management, better execution, and more bang/buck for consumers, which eventually wins in the free market.

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