Corporate Buyers' Survey – 6 January 1998
4
Our surveys have shown an increasing corporate
commitment to Microsoft. Why?
“Wintel is the corporate platform of choice”
“All Microsoft products integrate well”
“You can't be fired for picking Microsoft even if the
products are not technically sound”
“Global reach and critical mass of applications”
“Good at selling high-level managers a one-stop solution”
“They have us by the neck”
“I didn't know there was much choice”
These same reasons were given for IBM's dominance
thirty years ago. Integration of client and server does give
the appearance of a single solution, even if the scalability
and robustness for enterprise computing are questionable.
The lack of a clear alternative came up frequently, leading
to our next query.
If you were forced to choose between the Gang of Four
(Sun, Oracle, IBM, and Netscape) and Microsoft
regarding development tools and Internet software, which
would you choose?
Gang of Four 60%
Microsoft 40
Given the previous result, we would have expected
Microsoft to come out on top here. Our interpretation:
1. Users want an alternative. Responses favorable to the
Gang of Four (which Microsoft dubs NOISE) included,
“Microsoft is weaker on the Internet side,” “The Gang has
the best technology and reliability,” and “The Gang are
pioneers in open systems.” Some used Microsoft and the
Gang in different places, for example, Microsoft inside the
firewall and the Gang outside or Microsoft on the desktop
and the Gang on the server.
2. Developers may matter more than users. Merrill Lynch
Internet analyst Bruce Smith argues that developers are the
ones who decide which applications you and I will be
using. He believes that a similar question to developers
would favor Microsoft given the company's longstanding
ties with the software community. He goes on to point out
that the browser is the key to the game, which is why
Microsoft is so concerned about overtaking Netscape.
3. More formal unity may be required of the Gang of
Four. Users want an alternative, yet there is clear appeal
in a solution from one company. Alliances seldom, if ever,
produce the level of integration and focus that a single
provider can offer. Consequently, for the Gang to topple
or even contain Microsoft, going further than setting
standards may be required, possibly including mergers
among the four.
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[IBM, ORCL] MLPF&S was a manager of the most recent public offering of securities of this company within the last three years.
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Opinion Key [X-a-b-c]: Investment Risk Rating(X): A - Low, B - Average, C - Above Average, D - High. Appreciation Potential Rating (a: Int. Term - 0-12 mo.; b: Long Term - >1 yr.): 1 - Buy, 2 - Accumulate, 3 - Neutral, 4 -Reduce,
5 - Sell, 6 - No Rating. Income Rating(c): 7 - Same/Higher, 8 - Same/Lower, 9 - No Cash Dividend.
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