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Technology Stocks : Netscape -- Giant Killer or Flash in the Pan?

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To: Yiota who wrote (2244)2/4/1998 9:39:00 AM
From: Mark Zavist  Read Replies (1) of 4903
 
Netscape can't go home again, can it?
By Bill Machrone
02.02.98

Netscape faces the music


It's Groundhog Day, and Netscape saw Microsoft's shadow, not its own. All those brave words about market share sounded as empty as the groundhog's den, now that Microsoft is at least even in market share. It was obvious that Netscape would have to start giving away Navigator or, more likely, all of the Communicator client. But giving away the client merely puts Netscape on an equal footing with Microsoft, now that DOJ has won an Explorerless version of Windows.

How could Netscape trump Microsoft? Give away the source code. It's a brilliant move in many ways, but will it have the desired effect? The goal is to create a core of dedicated programmers who will put the latest features into Communicator, fix persistent bugs and move cool features from platform to platform. Just like the old days, when Mark Andreessen was an academic programmer, and he and his buddies created Mosaic. The free software community grumbled when he went Hollywood. Will they have him back?

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Will the Microsoft haters ... throw their energies behind the Netscape code base just to keep competition alive?
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The basic idea works well for Linux, Apache and other public software. Some of the best programmers work on this code simply because they enjoy putting forth their best efforts for peers and other users. As a result, Linux generally supports the newest devices and technologies before other operating systems. Commercial distribution companies, such as Caldera and Red Hat, take snapshots of the code base; add utilities, support and user interfaces; and make a profit on distributing the underlying free software. Will Netscape do the same, or will coders reject supporting Netscape's IPO millionaires?

Or will the Microsoft haters, stronger in the Internet development community than anywhere but an Apple employee picnic, throw their energies behind the Netscape code base just to keep competition alive? Many of them, I've found, don't hate Microsoft per se, but passionately oppose monopolies and single points of control. Their desire to see a level playing field may well outweigh thoughts of personal gain or the value of Jim Barksdale's options.

In an E-mail to developers, Andreessen touted the new unlimited distribution program as an opportunity for ISPs, software vendors and system builders to offer customized versions of Communicator to their customers "so third parties can add their logo, add bookmarks and tool-bar bookmarks, or change the default home page." Wow, no kidding? You offer me the source code and suggest that I change a resource or two?

One danger for Netscape is that multiple versions of Navigator may proliferate and that the availability of prerelease versions alongside distribution versions will create confusion in the marketplace. I'll be interested to see how Netscape plans to control versions and keep its brand identity intact.

Will enterprising developers substitute their own mail readers, bookmark managers, multimedia add-ons and more? Will multiple versions exist side by side in the marketplace, and what will that do to Navigator's acceptance? Will some enterprising coder build in ActiveX support, and how will that affect perceptions of security?

In any event, I predict another six weeks of winter for Netscape.

Bill Machrone is vice president of technology for Ziff-Davis Inc. He can be reached at bill_machrone@zd.com.
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