How high will Microsoft fly? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : How high will Microsoft fly?

MSFT 486.06

+0.5%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: ericneu who wrote (13758)	1/4/1999 1:15:00 AM
From: t2	Read Replies (1) of 74651

It's the same reason why MSFT won't be coming out with ERP software. Currently, ERP vendors LOVE MSFT because MSFT doesn't compete with them. Oracle does. Therefore Oracle doesn't get "Most Favored Nation" status with them. Therefore the trend in ERP is SQL Server, not Oracle. This is the kind of problems companies like Oracle and IBM face. They end up putting themselves in competitive situations where they end up hurting the sales of their own products - preventing them from gaining industry wide acceptance as standards. MSFT's strategic management is much better than its competitors. So much of MSFT's software is the industry standard and it is extremely difficult to compete against. I have been making similiar types of arguments. If MSFT were to buy out a cable company, that would guarantee that other cable companies will feel even more threatened and would refuse to include MSFT in their efforts in any way. You are making the same kind of argument here . I agree with your logic to a certain extent. I think in this case, they are already threatened by MSFT's efforts to develop a lot of the software. They feel that MSFT may gain too much control in their business just by developing an Operating System that people get very accustomed to. Cable cos want to bring in SUN and others (set top boxes ) to ensure MSFT does not gain control like it has with the PC. Notice that they don't manufacture PCs -- however -- they do have control. Since MSFT is not going to get its way with cable operators, this is one of options they may be contemplating. Cable has to compete with phone and satelite in the future. MSFT's acquisition one or two small cable cos to develop/improve/test their software would be a great move.The TCI's can then license the software. Cable operators will be in tough competitive enviroment and will want to offer the best services to their customers. MSFT software will get acceptance (if it is a good product) as long as they don't set their sights on becoming major players in cable. If the message is clear to the other cable cos -- there will be no problem. They won't want to become a large cable operator because there will be no profits and lots of competition. MSFT's main goal is to be the only software provider for the cable set tops. The inclusion of SUNW in the TCI deal threatened MSFT. Notice how they embraced cable in the past and are now focussing on fibre optics and phone lines as well since that announcement.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next