Linux-Advocacy Digest #183, Volume #27           Mon, 19 Jun 00 07:13:03 EDT

Contents:
  Re: [Fwd: Newsweek US Edition: Microsoft's Six Fatal Errors] ([EMAIL PROTECTED])
  Re: Claims of Windows supporting old applications are reflecting reality  or 
fantasy? (John Wiltshire)

----------------------------------------------------------------------------

From: [EMAIL PROTECTED]
Subject: Re: [Fwd: Newsweek US Edition: Microsoft's Six Fatal Errors]
Date: 19 Jun 2000 07:01:37 -0400

On Sun, 18 Jun 2000 13:50:08 -0700, Jimmy Navarro <[EMAIL PROTECTED]> wrote:
>This is a multi-part message in MIME format.
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>
>Early this morning I read the Newsweek June 19, 2000, article authored
>by  Jared Sandberg.  I was just trying to access it, somehow seems M$
>redirecting it to MSNBC to ERROR 404!
>
>
>--------------030AA1171B29ABA0EAA9715C
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>X-Mozilla-Status2: 00000000
>Message-ID: <[EMAIL PROTECTED]>
>Date: Sun, 18 Jun 2000 03:51:24 -0700
>From: Jimmy Navarro <[EMAIL PROTECTED]>
>Organization: Los Angeles Free Net
>X-Mailer: Mozilla 4.72 [en] (X11; I; Linux 2.2.14-3 i686)
>X-Accept-Language: en
>MIME-Version: 1.0
>To: [EMAIL PROTECTED]
>Subject: Newsweek US Edition: Microsoft's Six Fatal Errors
>Content-Type: multipart/mixed;
> boundary="------------16CBEA263EFC4A57DDF392FA"
>
>This is a multi-part message in MIME format.
>--------------16CBEA263EFC4A57DDF392FA
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>Content-Transfer-Encoding: 7bit
>
>It's 3:49 a.m.  I was just done replying some Usenet posting.  Some
>posters and readers in the Pinoy newsgroup just post and post and post
>but no whole idea what really the surrounding circumstances.  I think
>I'll stop going there because it's just much waste of time replying
>their rans.  Anyway, see this on-line edition of Newsweek covering the
>trial.
>
>http://www.newsweek.com/nw-srv/printed/us/st/a20907-2000jun11.htm
>
>
>

[ quoted-printable, HTML crap snipped ]

Here's the same Web page in ASCII text format (with the banners
omitted):

   Microsoft's Six Fatal Errors 
   [INLINE]
   
   Bill Gates
   Hanging in there: a defiant Gates after the verdict (Dan Lamont -
   Corbis-Sygma)
   
                                                              [35]On Air 
                                                                         
   Did the tactics that made Bill Gates the world's richest man provoke
   the threat of a breakup? The judge thought so. The road to a harsh
   verdict.
   [INLINE]
   By Jared Sandberg
   Newsweek, June 19, 2000
   
   It was a bleak winter day in early 1998, and [36]Microsoft's lawyers
   had come from Redmond to appear before Judge Thomas Penfield Jackson
   in the other Washington. In a legal clash predating the landmark
   [37]antitrust suit, Jackson had asked the company to remove its Web
   browser from Windows 95 on the grounds that forcing the browser on PC
   makers violated a prior pact with the Feds. Microsoft said a
   separation was technically impossible. But to comply with the judge's
   order, the company produced one browser-free version of Windows 95 so
   old that its shelf life was even shorter than [38]Bill Gates's temper.
   Another browserless version was so broken its only feature was an
   error message. The judge was clearly angry that Microsoft insisted the
   only way to comply with his order was to ship defective products. It
   was a hardball maneuver that cost Bill Gates & Co. dearly.
   
   The judge's frustration had been mounting. Already in this early
   skirmish, Microsoft had submitted a legal brief questioning the
   technical know-how of [39]Justice Department attorneys-and by
   extension the judge-who "have no vocation for software design." It
   also went over his head to the appeals court. Ultimately siding with
   Microsoft, the appellate judges overruled Jackson and told him the
   courts shouldn't be software designers. For Gates's empire, it was a
   short-lived victory. Looking back recently, one Microsoft insider said
   that first round clearly came at a high price: "We shouldn't have
   pissed off the judge."
   
   Last week Jackson ordered the biggest software redesign Microsoft has
   ever known, concluding that splitting the software giant into two
   independent companies was "imperative." In one of the few
   court-ordered breakups over the past 100 years, the judge endorsed the
   government's plan to create one company that would sell Windows and
   another that would sell everything else. Jackson's strongly worded
   opinion left little doubt why he went for the ax, as opposed to milder
   restrictions: Microsoft's bad attitude. First, he said, the company
   consistently maintained that it has done nothing wrong. Second,
   Microsoft could continue to flout the law and unfairly bully
   competitors. Last, referring to that first encounter more than two
   years ago, he called Microsoft "untrustworthy." Elaborating on the
   Windows incident, Jackson told NEWSWEEK, "I found their compliance to
   be less than genuine." Microsoft's attitude calls for the kind of
   remedy that it can't weasel out of, the judge seemed to say, because
   it has been a weasel before.
   
   If upheld, Jackson's order, aside from causing the biggest Windows
   crash in the company's 25-year history, would bring an end to a
   software empire that became the planet's most valuable company and an
   engine of the New Economy. Some-Microsofties among them-will blame the
   judge. Some will blame an overzealous government that has
   unsuccessfully tried to rein in Microsoft for more than a decade. A
   NEWSWEEK reconstruction of the key moments on the road to Microsoft's
   Judgment Day, however, suggests that the most likely culprit is the
   same defiant corporate culture that made Microsoft so successful in
   the first place. In the marketplace, rough-and-tumble tactics can be a
   virtue, but in the legal arena, Microsoft's blood sport backfired-at
   least with this judge. One critical turning point: Gates's own
   videotaped deposition in which he ducked questions and denied the
   obvious. After the tape was played in court, Jackson noted that Gates
   wasn't "particularly responsive." Watching the video, the judge wagged
   his head and rolled his eyes. And he practically double-dared the
   chairman to testify. "Microsoft took a scorched-earth approach," says
   Howard University law-school professor Andrew Gavil, "and they got
   scorched."
   
   Just after the judge's decision, Gates blasted the order as "an
   unwarranted and unjustified intrusion" but also appeared almost
   relieved to be heading to any courtroom other than Jackson's. "People
   say a lot of things about us," Microsoft CEO Steve Ballmer told
   NEWSWEEK. "But never has anyone said we're untrustworthy." The company
   likes its odds on appeal. Microsoft's lawyers and executives will be
   upgraded to geniuses if their reading of the law squares as well with
   higher courts as it has in the past. Jackson has had his fair share of
   reversals. The company has plenty of supporting law to lean on, as
   well as public support from two thirds of Americans. And many
   antitrust experts think the company won't be broken up even if higher
   courts find some violations. With the exception of last week's
   disaster, Microsoft has had a string of successes in the courtroom.
   "The company is fundamentally arrogant when it comes to litigation,"
   says one company insider, "because it has historically won." Along
   with the early Windows misstep, there are five other moments that led
   Gates & Co. to its gloomy Judgment Day:
   
   Let's Not Make a Deal
   
   In May 1998, in the weeks before the government filed its latest
   antitrust action against Microsoft, antitrust chief Joel Klein and
   Gates met at the offices of Microsoft's lawyers in the capital. Their
   conversations went well enough that "it looked like we were going to
   have a settlement," recalled David Boies, Klein's chief prosecutor.
   But when William Neukom, Microsoft's natty general counsel, met with
   Klein and officials at the Justice Department on May 15 in an
   eleventh-hour effort to head off litigation, each side quickly felt
   the other wasn't serious about settling. By their Saturday-morning
   meeting, Microsoft thought the government wasn't willing to negotiate;
   the Feds thought Microsoft was backtracking on its concession to give
   consumers a choice of browsers. Talks collapsed by midday. "For
   reasons I will never understand," said one official in the
   negotiations, "Microsoft was not prepared to implement the
   settlement." The following Monday, May 18, when Microsoft started
   shipping Windows 98 with its browser built in, Klein filed the
   lawsuit, accusing the company of trying to extend its Windows
   [40]monopoly to the Internet. The news shaved $10 billion off the
   value of Microsoft shares in a single day.
   
   If Microsoft had offered to give consumers a choice of browsers and
   give PC makers more control of software they wished to promote, the
   government's case might never have been filed. "It would have blunted
   the case," conceded one government official. Such a settlement would
   have spared Microsoft the subpoena wars that allowed the government to
   rifle through more than 3 million company documents and produce one
   damning e-mail after another. ("This antitrust thing will blow over,"
   Gates purportedly said, according to one of the government's favorite
   documents.) The hunt only served to broaden the charges against the
   software giant. "At that point, we were not aware of all the powerful
   evidence that later would be disclosed," said Connecticut Attorney
   General Richard Blumenthal, "and that led to heightened demands for
   stronger remedies."
   
   Candid Camera
   
   It was August 1998, and Bill Gates was under oath. In a Redmond
   conference room filled with leather chairs and a government video
   camera, Gates sat next to three Microsoft lawyers he apparently didn't
   think he needed. He refused to answer questions on his own during the
   30-hour deposition. Shifting and rocking in his chair, he appeared
   either petulant, contemptuous or bored. Whether Gates received good
   coaching from his lawyers or ignored it may never be known. He
   quibbled over the meaning of the simplest words ("compete" and "ask"
   were real stumpers). And on the occasions that he remembered e-mails
   he authored, he denied knowing what he meant by them. The same
   detail-oriented, driven genius who created the world's most valuable
   company-and a GDP-size fortune of his own-was seemingly out to lunch.
   
   The video was a turning point for three reasons. First, it indicated
   that Gates & Co. were more confident than careful. "Nobody realized,"
   admitted one Microsoft insider, "they were going to be able to play
   the Gates video in trial"-which they did, starting just after the
   gavel fell on day one. (Microsoft says the judge admitted the video
   into court after he originally said he wouldn't.) The video also set
   the stage for a massive credibility attack on the company, casting
   doubt on the dozen Microsoft witnesses who followed. Any judge
   weighing conflicting testimony is inclined to accept the more
   believable witness. And from his first ruling it was clear that none
   of Microsoft's witnesses convinced the judge of anything.
   "Credibility, in general and in the abstract," Jackson said last week,
   "is very important." The video seemed to head off any argument from
   Microsoft's lawyers that the company's aggressive tactics were the
   work of rogue employees. Finally, antitrust experts think the video
   was a blown opportunity to introduce themes for the defense that could
   be reinforced throughout the trial. The company failed "to use the
   deposition as a chance to create a commercial," says [41]George
   Washington University law-school professor William Kovacic. Instead,
   the government put it on heavy rotation.
   
   The E-Mail Trail
   
   By January 1999, as Microsoft began its defense, the credibility
   attack seemed to be working. Typically, each of the company's
   witnesses would give no ground in testimony, only to be embarrassed
   when Boies produced an e-mail that directly refuted his or her version
   of events. The darkest day of testimony was when Microsoft's lord of
   Windows, Jim Allchin, took the stand. Far from the stereotype of the
   rabid Microsoft executive, Allchin is a soft-spoken man whose silver
   hair and pale complexion suggest he's been weathered by years of hard
   work. Antitrust experts say Allchin was a perfect example of a missed
   opportunity to explain the wonders of Windows and how trifling with it
   would be dangerous. Instead, a videotape intended to demonstrate that
   Microsoft couldn't separate the browser from the operating system
   without damaging Windows looked doctored. Icons on the computer screen
   in the tape mysteriously appeared from one moment to the next. As
   Boies pointed out inconsistencies, the judge watched, head in hand.
   "It simply casts doubt on the reliability-the entire reliability-of
   the video demonstration," Jackson finally intoned. It was as if
   Microsoft hadn't taken the case seriously enough to make sure
   everything was Boies-proof.
   
   None of these courtroom gaffes might have mattered; they could have
   been dismissed as theatrics with no bearing on the law-a point
   Microsoft made almost every day on the courthouse steps. But in his
   findings of fact issued last November, the judge's first ruling,
   Jackson quoted Allchin's e-mail at length and identified him as the
   mastermind behind the strategy to crush rival [42]Netscape by bolting
   Internet Explorer to the operating system. It was just the kind of
   monopoly leveraging-using one monopoly product to enter into a new
   market-that sets off antitrust alarms. And there it was in Allchin's
   e-mail: "We must leverage Windows more." To the judge, no courtroom
   testimony could explain that e-mail away.
   
   By the time Microsoft's final witness took the stand in February 1999,
   the judge seemed to have had enough of Microsoft's denials.
   Microsoft's last witness, group vice president Robert Muglia, was
   trying to explain a piece of Gates's e-mail in which the chairman
   appeared to be trying to hobble a competitor. After the judge
   expressed doubt about Muglia's gentler spin, Muglia persisted. Jackson
   erupted in one of his angriest outbursts. Pointing at Muglia he
   yelled, "No! Stop!" and then called a recess.
   
   'Still in Denial'
   
   Just days earlier Microsoft had taken its second stab at a settlement.
   In three meetings at the Justice Department beginning on Feb. 24, the
   two sides sat down to talk. Microsoft submitted several drafts to
   Klein. "We put three proposals on the table," said one Microsoft
   insider. "We felt like we were offering more." But more wasn't enough.
   The government, which was considering a breakup even then, wanted
   Microsoft to submit to curbs on its behavior. Microsoft refused many
   of them, such as putting government-appointed people on the board. To
   Microsoft, the government was simply taking control of the company and
   nationalizing it. To the government, "they were still in denial that
   they would lose," said Boies. The government believed Microsoft was
   submitting the same settlement proposal it had offered before the
   trial began. By the last meeting on June 2, the talks had stalled.
   
   A month earlier Jackson set up a procedural framework that would give
   Microsoft another opportunity to settle. In an unusual move, he
   decided not to release his findings of fact (his decisive version of
   the facts) and his conclusions of law (how those facts overstepped
   antitrust law) simultaneously. Instead, he staggered their release.
   That way, he could focus both sides on arguing the same set of
   facts-his own. And by releasing his facts first, he would tip his hand
   and give the losing side incentive to wrap up the case.
   
   That incentive arrived in Redmond on Nov. 5 last year. If Microsoft
   had missed any prior signals that things were going badly, only a
   megaphone might have been clearer than Jackson's findings of fact. Of
   the document's 412 paragraphs, no more than four looked favorably on
   Microsoft.
   
   The Last Dance
   
   Weeks later Jackson appointed Judge Richard Posner, one of the most
   respected jurists in the country, to try to make a deal. A prolific
   author and revered professor, Posner is most importantly a member of
   the Seventh Circuit Court of Appeals and is well schooled in the
   economic and legal gymnastics of antitrust law. In a case certain to
   be appealed by either side, there was perhaps no one better to peer
   over the legal horizon and give both sides enough to worry about to
   make a settlement look irresistible. Posner met with both sides
   separately, probing the facts and the elasticity of each side's
   stance. He met privately in Chicago with Gates, who convinced the
   judge, himself a conservative wary of government intervention, that a
   breakup was out of the question.
   
   There was a moment of hope in February. Posner asked the government if
   it was willing to set aside breakup proposals and base a settlement on
   rules that Microsoft must live by. Though some of the 19 states that
   were also parties to the suit opposed the idea, the Feds decided that
   they could live with "conduct remedies" if it meant they'd be
   implemented quickly, rather than at the end of protracted litigation.
   It was a major concession, one that could have given Microsoft one
   last opportunity to dodge the breakup bullet. But to Microsoft, the
   conduct remedies were "effective breakups anyway," said one
   Microsoftie. And the company didn't want to strike a deal with the
   Feds if the 19 states wouldn't also agree to it.
   
   The government, for its part, believed Gates & Co. weren't going far
   enough and hadn't faced the fact they were about to lose in court yet
   again when the judge issued his conclusions of law. "Microsoft's
   argument kept coming down to: we're not really a monopoly, so we
   should be able to do what we want," Boies explained last week. "They
   were not willing to constrain their conduct in any way." By Saturday
   morning, April Fools' Day, Posner, sensing that the gap between the
   two sides couldn't be bridged, called off the talks. They headed back
   to the courtroom, and last week the judge issued [43]his devastating
   ruling.
   
   Now Microsoft faces an uphill battle to reverse the judge's decision.
   It has delayed the breakup pending an appeal and is trying to hold off
   the conduct restrictions that Jackson imposed. It may be even harder
   to reverse the collateral damage from the rulings. Goldman Sachs
   analyst Rick Sherlund estimates that the lawsuit has lopped off as
   much as $175 billion from Microsoft's market capitalization. The
   expense of the suit, the distraction and the demoralization of the
   past two years have taken an emotional toll. Some employees, once true
   believers, are now skittish, wondering for the first time whether they
   should head for the exits. And what about the confidence of customers
   and software partners? "It's not something you put in a spreadsheet,"
   says Sherlund. "But it is something that concerns us."
   
   Private antitrust suits are also threatening the company. Had
   Microsoft settled, it could have prevented last week's ruling.
   Instead, for the roughly 170 law firms pressing 137 lawsuits against
   the company, the document is Exhibit No. 1 in their effort to prove
   that Microsoft harmed consumers. Though many of the cases won't
   prevail, any that do will win treble damages. That dollar figure, says
   high-octane class-action lawyer Stanley Chesley, "could be in the
   billions." That may not dent the company's $21 billion war chest. But
   Chesley vows to exercise the right "to take the deposition of every
   major officer of Microsoft."
   
   Now Microsoft's fate rests in the hands of higher courts. If the
   company wins, the victory would be more stunning than the
   government's. But it's a win so costly that it could still seem like a
   loss.
   
                           � 2000 Newsweek, Inc.
                                      
                            [44]Back to the top
                                      
   Web Exclusives:
   
   [45]Campaign 2000
   
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   Live Talks:
   [47]Cover Talk-Bill's Judgment Day:
   The verdict is in. Last week, Judge Thomas Penfield Jackson ordered
   Microsoft split into two independent companies, one that will sell
   Windows and one that will market application software. What does the
   future hold for Bill Gates & Co.? Jared Sandberg joined us for a Live
   Talk about Microsoft on Wednesday, June 14th.
   [48]Read the transcript.
   
   [49]Politics Talk-The New Odd Couple:
   Ralph Nader and Pat Buchanan are dark-horse candidates in the race for
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   Campaign 2000. Newsweek's Matt Bai joined us for a Live Talk about the
   political season on Thursday June 15th.
   [50]Read the transcript.
   
   From Newsweek U.S. Edition
   
   The Cover: [51]Bill's Judgment Day
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References

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  11. file://localhost/tmp/a21056-2000jun15.htm
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javascript:QTaudioWindow('http://www.newsweek.com/nw-srv/multimedia/nwonair/m21023-2000jun13.htm')
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javascript:spawnWindow('http://www.newsweek.com/nw-srv/printed/us/hyper/20000619/ms.htm')
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javascript:spawnWindow('http://www.newsweek.com/nw-srv/printed/us/hyper/20000619/al.htm')
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http://ad.doubleclick.net/adi/wpni.newsweek/technology;kw=;sz=468x60;ptile=2;ord=?
  67. 
http://ad.doubleclick.net/jump/wpni.newsweek/technology;kw=;sz=468x60;ptile=2;ord=?


------------------------------

From: John Wiltshire <[EMAIL PROTECTED]>
Crossposted-To: comp.os.ms-windows.advocacy,comp.os.ms-windows.nt.advocacy
Subject: Re: Claims of Windows supporting old applications are reflecting reality  or 
fantasy?
Date: Mon, 19 Jun 2000 11:06:31 GMT

On Sun, 18 Jun 2000 00:33:41 -0400, "Colin R. Day"
<[EMAIL PROTECTED]> wrote:

>John Wiltshire wrote:
>
>> I think you've blinded yourself to the possibilities.  There's a
>> kernel httpd at the moment which is frighteningly fast.  Why not X?
>>
>
>Perhaps the fragility of GUI code?

I accept that GUI code is more complex than daemon code for the most
part (naturally it depends on the GUI and the daemon).  Still, the
possibility exists and I think it is probably a good option for some.

John Wiltshire


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