[comp.os.os2.misc] Bill Gates, in memo, warns of attack and defeat by rivals

rdippold@cancun.qualcomm.com (Ron Dippold) (06/22/91)

I just brought this over from one of the pc.misc groups, it's very interesting.

In article <23720@shlump.lkg.dec.com> reisert@mast.enet.dec.com (Jim Reisert) writes:
>
> Microsoft - Gates, in memo, warns of attack and defeat by rivals
>
>	{The Wall Street Journal, 19-Jun-91, p. B8}
>
>   Mr. Gates' state of mind is evident in a memo he wrote in April to his top
> executives in which he said that some of his worst fears were coming true:
> "Our nightmare - IBM 'attacking' us in system software, Novell 'defeating' us
> in networking and more agile, customer-oriented applications competitors
> getting their Windows act together - is a reality." The memo was obtained by
> the San Jose (Calif.) Mercury News, which quoted from it in a story published
> in its editions yesterday. The authenticity of the memo  was independently
> confirmed by Microsoft. ... Though Mr. Gates publicly insists he still has
> plans for OS/2, an alternative piece of the software that IBM and Microsoft
> formally are jointly developing and Mr. Gates once heralded as the standard of
> the future, he indicates he has relegated OS/2 to oblivion. "Our strategy for
> the '90s is Windows - one evolving architecture, a couple of implementations.
> Everything we do should focus on making Windows more successful," Mr. Gates
> wrote, according to the San Jose Mercury News. That position angers IBM, which
> paid Microsoft huge amounts of money over the years to lead OS/2 development.
> Frustrated with Microsoft's stance, IBM began directly pushing OS/2. The split
> has had unintended benefits, writes Mr. Gates, who complains that the
> partnership with IBM forced Microsoft to accept "poor code, poor design and
> other overhead." Ironically, in his memo, Mr. Gates instructs his senior staff
> to refrain from publicly criticizing IBM, advising that they "not attack IBM
> as a company, and even out public 'attacks' on [IBM's] OS/2 will be very
> professional." Mr. Gates, known for playing hardball with both rivals and
> allies alike, makes it clear that such restraint is self-serving. "Eventually
> we need to have at least a neutral relationship with IBM," he writes. "For the
> next 24 months it may be fairly cold. We can emerge as a better and stronger
> company where people won't just say we are the standard because IBM chose us."
> Among other observations, Mr. Gates writes:
>   -- Losing the legal battle with Apple Computer Inc., which is fighting in
> court to prove Microsoft copied some key features of Apple's Macintosh
> software for its own Windows program could be "disastrous."
>   -- The current Federal Trade Commission investigation into allegations of
> unfair business practices by Microsoft "will use up even more executive staff
> time than the Apple lawsuit has. However, I know we don't get unfair
> advantages. I hope we can quickly educate the FTC on our business."
>   -- Microsoft isn't doing an adequate job responding to customer inquiries
> about its products. "The number of customers who get a bad impression because
> of this must be in the millions world-wide."
>
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>
>"The opinions expressed here in no way represent the views of Digital
> Equipment Corporation."
>
>James J. Reisert                Internet:  reisert@mast.enet.dec.com
>Digital Equipment Corp.         UUCP:      ...decwrl!mast.enet!reisert
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-- 
Standard disclaimer applies, you legalistic hacks.     |     Ron Dippold