Since the advent of Steve Ballmer’s retirement is such a hot topic these days and the subject of Microsoft’s decline is such a popular one, I thought that this week I would pick up my story telling at the end of my career at Microsoft and the beginnings of the Internet era culminating in the DOJ trial.
If I were asked to identify a single event that heralded Microsoft’s peak and decline I would have to pin it on this 1995 memo from Bill Gates.
http://www.wired.com/thisdayintech/2010/05/0526bill-gates-internet-memo/all/
I would say that it was this moment and all of the subsequent events that cascaded into the Microsoft we know today. Here is why this moment in Microsoft’s history was so pivotal.
It marked the successful release of a mass market consumer Windows OS that finally put Apple on its heels in the consumer market and eliminated IBM from the race.
It marked the first time the Microsoft turned its guns on a small private company (Netscape) instead of another tech industry behemoth company.
It marked the era when Microsoft Microsoft’s newfound success in the consumer market split the company’s focus between enterprise software and consumer products.
It was the transition era from Microsoft’s old Windows code base to the new Windows NT code base
It was the year Microsoft truly became a “monopoly” which culminated in the DOJ trial
It was the year an exodus of “old-school” Microsoft veterans began
This was the era of Microsoft’s peak when the company was “at it’s best” while aggressively sowing the seeds of its own decline. There are plenty of detailed histories of the Internet wars as told by journalists and historians… what I will attempt to recount in this and subsequent tails, is what it was like at Microsoft from the inside of these events. I am recounting these stories from 17 year old memories, so please excuse me if my chronology or facts are not completely consistent with the history books.
In 1995, Microsoft’s “vision” for the Internet was to surpass AOL with a dedicated internet client application. The project was code named “Blackbird”. Nathan Myhrvold, then responsible for Microsoft’s Advanced Technology Research Group, was working hard on set top box designs and talking a lot about how ATM technology would deliver broadband to everyone’s homes.
The Strategic Marketing Group including Developer Relations was moved under Brad Chase, the VP of Windows marketing (Responsible for the famous Windows 95 Start-Me-Up launch event). At that time, Yusuf Medhi, one of Microsoft’s rising stars, was placed in charge of “strategic marketing” of Internet Explorer (killing Netscape). You’ll recognize Yusuf more recently from the flubbed Xbox One Launch event, but don’t hold that against him, he’s a very likable guy.
Yusuf Medhi launching XBOX ONE
To set the context for this period in history, I found this old email from Yusuf from around that era to our team and taken the liberty of highlighting in red sections that are relevant to the DOJ trial story or connected to other stories recounted on this blog.
—————————-Original Message————————-
From: Yusuf Mehdi
Sent: Tuesday, December 10, 1996 4:24 AM
To: Greg Shaw (Corp. PR); Executive Staff and Direct Reports; GMs of Subsidiaries; Subsidiary PR Issues; Field PR Issues; PR Org. Communications; Monday Memo Communications; Investor Relations
Subject: IE 4.0 and PCN Messages for Internet World
Importance: High
The following represents the key messages for IE 4.0 and the PCN announcment at Internet World. Also attached is a rude q&a with greater detail. The announcement with PointCast is Microsoft Confidential until the announcement on Wed at 1:30 PM eastern.
Overall Goals
Announce the PointCast Network Partnership
Demonstrate Leadership and Vision for IE 4.0
Communicate IE 3 Momentum
Key Messages
PointCast Network Partnership
Microsoft is partnering with PointCast Network to bring high quality Internet content broadcasting to millions of users.
Microsoft has selected the PointCast Network as the first premier content provider for the Internet Explorer 4.0 Active Desktop.
As part of the agreement, PCN will author its content to the Active Platform, use the Active Desktop content delivery services, and ship Internet Explorer as its preferred, default browser beginning in Q1/Q2 of 1997 with their PCN 97 product.
MSNBC, the online joint venture between Microsoft and NBC, has agreed to be a key news and information provider on the PointCast Network and plans to independently offer its original content as part of the Active Desktop.
Internet Explorer 4.0
Internet Explorer 4.0 is Microsoft’s next generation Internet client suite of products. In particular, IE 4.0 is a:
Best of breed Internet client that simplifies finding and better using information for end users
Low cost Intranet client that reduces IT complexity and improves business processes for IT managers
Next generation development platform for content and software developers
Active Desktop
The Active Desktop is a feature of Internet Explorer 4.0. It is a better, more comprehensive solution than Netscap Communicator’s Constellation because:
IE 4.0 provides a single user interface for accessing and using all content, software, and applications and thus will be much easier to use than Constellation.
Also, since Constellation is basically an additional layer on the operating system user interface it will have additional overhead impacting performance.
The Active Desktop will deliver more exciting and compelling content because of the richness of the authoring platform and breadth of content providers – such as PCN announced today.
You could sum it up by saying, “Microsoft is offering more and better channels that run off a single, free remote control. Conversely, Netscape is offering a subset of channels and requiring that you pay for an additional remote control to view them.”
IE 3.0 Momentum
In less than one year, IE share has grown to over 20% of web traffic as measured by websites that measure share:
Browserwatch: http://browserwatch.iworld.com/stats/stats.html
Interse: http://www.interse.com/webtrends/
University of Illinois http://www.cen.uiuc.edu/bstats/
Webtrends: http://www.webtrends.com/PRODUCTS/WEBTREND/REPORTS/industry/browser/nov96/report.htm
IE share gains have come largely from IE 3.0 for Windows 95. With the just release version for Windows 3.1 users, and the coming release for the Macintosh, user share will continute to increase.
Over 5,000 Internet Service Providers ship IE today, many as the preferred browser. The top 8 ISPs/OLSs ship IE as the default option and collectively represent more than 12 million active users on the Internet.
Over 450,000 individuals that build websites have signed up with Microsoft’s Site Builder program. These folks are building websites enhanced for Internet Explorer with the over 2,000 ActiveX controls available today.
Major corporations are now beginning to deploy and standardize on IE such as Merrill Lynch, Simon & Schuster, Harper Collins, George Weston Limited, Baltimore Gas & Electric, Arthur Andersen, AllState, US Navy, Compaq, Sprint Spectrum.
Detailed Q&A on the the announcements:
—–Original Message—–
From: Greg Shaw (Corp. PR)
Sent: Friday, December 06, 1996 7:06 PM
To: Executive Staff and Direct Reports; GMs of Subsidiaries; Subsidiary PR Issues; Field PR Issues; PR Org. Communications; Monday Memo Communications; Investor Relations
Subject: PR Monday Memo for 12/9/96
KEY ACTIVITIES AND HOT WEB TOPICS
Internet World trade show in New York City.
Monday, Microsoft unveils IE 3.0 for Windows 3.1.
Monday, Exchange Server 5.0 release candidate available.
Tuesday, General availability of new MSN announced.
CORPORATE – Greg Shaw, Pam Edstrom
Thursday’s Wall Street Journal article on OEM Windows licensing will generate additional stories in the coming week. In addition to briefings with key editors to correct misperceptions resulting from the article, a letter to the editor of the WSJ has been submitted.
Key Messages:
Through our licensing, Microsoft is preserving for customers the consistent, user-friendly Windows boot process and interface they want and expect. We also continue to encourage choice by providing OEMs and software vendors with all of the information and tools they need to provide great technology and content on the Windows platform.
We are requiring that OEMs not interrupt the Windows 95 boot process until it is complete.
Once the boot process is complete on the first start-up out of the box, end users can configure the desktop in any way they want.
OEMs are free to promote any shell or desktop configuration to consumers. In fact, Microsoft provides OEMs with the tools they need to offer shells and demonstrations to consumers.
Microsoft’s Windows licensing practices are pro-competitive and in the best interest of our customers.
Netscape’s announcement that it has received an information request from the DOJ, as part of the DOJ’s ongoing Microsoft inquiry, will continue to generate press. Netscape will try to say the investigation is widening beyond the browser. Our messages will continue to be: (1) there is no indication that the focus of the inquiry has changed in any way, (2) business as usual, (3) we remain confident we are conducting our business in a completely legal and appropriate manner.
INTERNET PLATFORM AND TOOLS DIVISION – Colleen Lacter
INTERNET WORLD 12/11-13 in New York
The show’s PR mission is to demonstrate that one year after Internet Strategy Day, Microsoft remains very committed to the Internet, has delivered on the embrace-and-extend strategy, and has demonstrated leadership in developing internet products.
Key Messages:
Microsoft delivered best of breed client software in IE3.0.
Microsoft delivered on cross-platform commitment.
Microsoft embraced and drove open standards.
The above three primary PR messages are focused on Active Platform and are represented in Bob Muglia’s keynote (Thursday, 1:00 p.m.):
1. The Microsoft Active Platform is a comprehensive set of client and server development technologies that make it easy for developers to integrate the connectivity of the Internet with the power of the personal computer.
2. With Active Server technologies, companies can lower the cost and complexity of building and supporting server applications.
3. The Active Platform works behind-the-scenes to give users a seamless state-of-the-art browsing experience and allows them to enjoy the richest and most interactive experience from their personal computer, regardless of platform or browser.
In addition, Microsoft will make the following partnership announcements:
MS/USWeb partnership joint press release:
Key Messages:
The alliance with USWeb is another example of Microsoft forging strategic partnerships with key internet players to expand key initiatives such as the SP program and provide a better experience for customers.
ActivePlatform is the optimal internet development platform due to support for open standards, ease of use, low cost of deployment and customizability.
Corporate customers are aggressively adopting Microsoft internet and intranet technologies.
Microsoft and Pointcast will host a press conference on Wednesday, to announce their partnership that will enable push content to the Active Desktop.
Key Messages:
Microsoft is the affirmed leader in the push content model.
Partnership brings best of breed technology to the Active Platform.
Partnership further shows Microsoft as a good industry partner because this agreement is mutually beneficial to both companies and their customers.
Microsoft and Apple are issuing a joint release on Wednesday.
Key Messages:
Apple and Microsoft are working together to provide comprehensive support for ActiveX on the Mac, demonstrating Apple’s endorsement of ActiveX technologies.
Apple is integrating ActiveX in their Java runtime, enabling Java developers to easily take advantage of the functionality of the Mac OS.
Microsoft and Apple are working together to ensure ActiveX controls run on the Cyberdog Web browser, ensuring ActiveX controls will run on all major browsers for the Mac platform.
Microsoft will make the following announcements, which support the Active Platform messages:
Key components of the Active Server are being released this week, Microsoft Transaction Server 1.0 and Internet Information Server 3.0.
Active Server is a set of technologies that enables developers to easily build and deploy component-based server applications.
Exchange Server 5.0- Provides additional internet functionality and is integrated with the Active Server.
IE 3.0 for Win 3.1- Allows customers to view the richest content and the technology works with their existing system.
IE 4.0 Discuss the timing and functionality of IE 4 and the Active Desktop in context of the push model trend.
Netmeeting- Announce Beta 2 of Netmeeting, which includes video capabilities.
FrontPage-MCI will issue third party news release announcing support of FrontPage and they will brief press on the year’s accomplishments.
MSN - Raise consumer awareness that the new MSN is immediately available and to drive customer trials of the service.
Monday, we will issue a press release announcing NetMeeting 2.0 beta2 availability.
Key Messages:
NetMeeting 2.0 beta2 adds video, making it the first Internet conferencing tool to deliver audio, data and video conferencing capabilities to the end user.
MS NetMeeting is a standards-based solution providing interoperability for the end user.
Video that is standards-based makes Internet communication a complete solution for customers in the home or office when face-to-face communication is not possible.
Monday we will issue a joint press release announcing MS/Intel video phone availability.
Key Messages:
Video gives customers a valuable way of using the Internet to enrich their communication with friends, family, and coworkers.
These two influential companies are providing a new capability that will bring Internet communication to a new level.
Microsoft and Intel are working together to bring Internet telephony to the mainstream through standards-based solutions.
Monday, we will announce that Internet Explorer 3.0 for Windows 3.1 is available.
Key messages:
Early downloaders can win prizes
Best-of-breed browser for the Win 3.1 platform
Corporation already are choosing IE 3 for Win3.1
IPTD and DBSD will brief analysts on Monday and Tuesday to outline Active Platform benefits to developers and pre-brief on Active Platform announcements happening at Internet World. On Wednesday and Thursday at the show, we will meet with PC trade and Web developer press to educate on Active Platform and put Active Platform Internet World announcements in context.
We will issue a momentum release for the VB5 Control Creation Edition on Tuesday.
Key messages:
Nearly 100K downloads of the product from the MS Web site since 10/28.
Industry support (ISVs, developer community, press).
VB5CCE is the fastest, easiest way to create ActiveX Controls.
We will announce the beta availability of Visual InterDev on Monday. Beta will be downloadable via the Microsoft web site beginning Monday morning.
Key Messages
VI offers a complete and extensible Web application development tool
VI is ideal for a team-based development environment
VI allows for rich and easy ODBC compliant database incorporation into Web applications.
The Microsoft Commercial Internet System (MCIS) group will announce Monday or Tuesday that it will acquire a small Internet company and integrate its products into the BackOffice product line.
Key Messages:
The company’s line is best of breed web content tracking and site analysis tool
The company’s customers, team and technology are a natural complement to Microsoft line
Microsoft building complete internet & intranet web content management solution around webmapper, internal technologies
Tuesday, the PC/Smart Card Workgroup (current members include Microsoft, Schlumberger, H-P, Groupe CP8, and Siemens Nixdorf) will announce the release of open specifications to integrate smart cards with personal computers. The new technology allows application developers to take advantage of the smart card’s portability and hardware-based security, both critical factors for the development of secure network applications for health care, banking, corporate security and electronic commerce. The specs insure interoperability among smart cards and smart card readers, and provide high level APIs to developers. While the group’s initial announcement on 9/10, was coordinated by Microsoft, this joint announcement is being coordinated by Schlumberger.
DESKTOP & BUSINESS SYSTEMS DIVISION – Kristin Kaden, Linda O’Neill, Erin Holland
In view of this week’s WSJ article, we anticipate that some of our competitors will try to raise issues about the openness of the future “Active Desktop.” We are continually evolving the Windows desktop to offer greater features and functionality. Windows will become an active desktop that streams content to the user. We expect that there will be a wide range of alternative desktop configurations available to consumers, and Microsoft will continue to provide third party developers with the tools they need to make great products to run on the Windows platform.
Microsoft will launch Microsoft Transaction Server 1.0 at Internet World.
Key Messages:
Transaction Server, part of the Active Server, makes it easier to build and deploy applications built from ActiveX components on the server.
Transaction Server provides the reliability of TP Monitors and the flexibility of object request brokers for a new generation of internet server applications
Transaction Server is based on standards and has broad industry support Microsoft Internet Information 3.0
Microsoft will also launch Internet Information Server at Internet World.
Key Messages:
IIS 3.0 raises the bar on what it means to be a web server.
There is huge number of customers switching to IIS.
IIS 3.0 and Transaction Server deliver on Active Server technologies.
Wednesday, at Internet World, Compaq and MCI, with strong statements of support from MS, will announce a trial deployment of the NetPC and ZAW initiative. MCI will announce a test pilot program that will involve 16,000 seats and be operational before the end of 1996. Compaq will announce its commitment to introducing a line of NetPC products in the second half of 1997. Compaq and MCI are driving the press coverage but MS officials will be available to offer comments.
The Exchange team will announce Release Candidate on Exchange 5.0 and Availability of Exchange Server 5.0.
Key Messages:
Microsoft is releasing a broadly available Release Candidate of Microsoft Exchange Server 5.0 for download at: http://www.microsoft.com/exchange/trial.htm.
Microsoft Exchange Server 5.0 will fully support the Active Server and will bring customers unmatched support for open Internet standards.
Microsoft Exchange Server 5.0 extends powerful messaging and collaboration tools to the Internet and intranets and enables Web developers to build Web-based applications using Active X scripting and Active X component support.
IIS and Netshow teams are going on a “mini-reviews tour” as well as doing meetings at Internet World. We are expecting the final release of IIS 3.0 on Thursday.
Objectives:
Let reviewer’s know that IIS 3.0 will/has RTM’d on Thursday
Educate reviewer’s on the features(highlighting Netshow), functionally and performance of IIS 3.0
Build relationships
DESKTOP APPLICATIONS DIVISION – Lynann Bradbury, Sandra Puccinelli
A blast email will be issued Monday on FrontPage which outlines our accomplishments in just one year. The goal is to continue momentum, drive inclusion of FrontPage in Internet focused end-of-year round-up articles, and provide reviewers with solid data to keep their reviews timely.
Key Messages:
One year anniversary
3 versions of product shipped in one year, FP 97 is now shipping
MCI announces support for FP server extensions bringing number of ISP support of FrontPage to over 150
Industry success: awards, beta download numbers
Invitation to Internet World Web Designer party with specific competitive talking points directed to design community.
MCI will issue third party news release announcing support of FrontPage.
INTERACTIVE MEDIA GROUP – Paige Prill
Monday, Mungo Park will announce the destination for it’s next live expedition — Space.
Key messages:
Next in its Live Expedition series, Mungo Park™, the online adventure magazine from Microsoft, joins NASA’s Space Shuttle Atlantis on its mission to dock with Russian Space Station Mir.
The January issue of Mungo Park (http://mungopark.msn.com) will feature the first personal accounts published live from an astronaut during a mission, the first live Internet chat from space and first-ever surround video from space available on the Internet and more.
Join best selling author Tom Clancy, Microsoft Chief Technology Officer Nathan Myrvold and editor-in-chief Richard Bangs on January 12th as they share their impressions from Kennedy Space Center.
Mission Specialist Dr. John Grunsfeld, astrophysicist, astronaut and mountain climber, will provide Mungo Park an insiders view of daily life on board the shuttle — from eating habits to repairing satellites in space.
Tuesday, we will announce the general availability of The Microsoft Network (MSN). This announcement marks the coming together of several factors:
Key Messages:
CD shipments are well underway, providing millions of customers with immediate access to the final version of MSN.
The kick-off of targeted promotions and sweepstakes aimed at getting a whole new batch of consumers to call the 1-800-FREE-MSN line and try the news service.
Roll-our of all new Web show episodes for the fall/winter season.
OCU – Wendy Barokas
Monday, the Small Business Administration will announce a partnership between Microsoft and Compaq to launch a major technology program (“Start, Run, Grow”) for small businesses. The program will provide advanced computer hardware, software, technical support and education resources to existing and future Business Information Centers nationwide.
Key messages:
This initiative makes it easy for all small businesses to gain access to the most advanced technology and education resources available today.
This initiative is a tremendous example of the advantage that American small businesses receive through public-private partnerships.
Small businesses are the engine of the economy. This program provides small businesses with the tools and knowledge they need to increase their productivity and better compete.
INVESTOR RELATIONS – Carla Lewis
Monday, Mike Brown will address an audience of over 300 senior investment decision makers and portfolio managers at the Montgomery Securities 14th Annual Technology Week in San Francisco.
Friday, Brad Chase will address the top 100 institutional and individual investors at the Goldman Sachs CyberCommerce Conference in Phoenix.
INTERNATIONAL – Erin Brewer, Renee Dunn, Natalie Hadfield
BillG will travel to Japan to conduct a series of customer, partner and press visits. During this trip he will give the keynote address at the Windows Intranet Solutions Conference sponsored by SoftBank Expo to formally launch the Japanese version of Windows NT 4.0. He will also participate in an executive q&a session with Far East and MS Japan managers to address Microsoft’s strategic directions and particularly our growing business in the Far East and Japanese markets
MISC. COVERAGE
The Wall Street Journal will carry an article this week on how the “push model” — streaming content onto an end-users’ desktop — has the potential to change the way people relate to Internet content. The story is broad. It will focus on some of the business implications and who stands to gain/lose. He will look at
MS in two areas — both as a distributor and producer of content. MS is not the only focus. It will raise the issue raised in the Journal’s OEM licensing story this week. MS is on the record saying MS content must succeed on its own merits on the IMG side, and on platform side, many people will play.
The New York Times will carry a John Markoff article this week on Microsoft’s growing research group and increased focus on future technologies.
Time and Fortune plan feature articles on philanthropy in the coming week. Time will reprint Slate’s list of the top 60 philanthropists. Billg appears as #10 according to the rules Slate has set. In reality, Bill’s philanthropy is much higher than what is reported.
Nightly Business Report will air a taped interview of Bob Herbold on Tuesday evening. The interview covers several topics; including the MS business model for the Internet, Office 97 launch, Net PC/zero administration windows, MS R&D efforts, etc.
Some papers over the weekend may contain an AP article that inaccurately states that Billg will be participating in a lecture series that will be part of the Presidential inaugural in January. The AP later amended the story but some newspapers may run the earlier version.
Bloomberg Business News will feature a story on Microsoft Research efforts in regards to speech recognition as the next major input for the PC.
The Boston Globe ‘s Sunday issue will contain a favorable article addressing accessibility features in browsers as well as software. The article focuses on the Active Accessibility toolkit and the accessibility features in IE 3.0 that make it easier for disabled people to use the Internet and perform basic computing tasks. The only issue that may be published as a negative is the fact that these accessibility features only run on the Win32 platform.
Infoworld will print a review of Microsoft Commercial Internet System servers including the news, personalization, and conference server. We expect this review will be neutral and will say that the products have good integration with NT and gains some functionality from this, but it will also be seen as a ding that it only runs on the NT platform.
PC World will have a comparative review of Win 95 and NTW. The lab did some performance and compatibility testing of NTW and Win 95 and did not find any significant differences between the two. The review is expected to track with Microsoft’s positioning. We should expect to take some dings on the lack of a migration path from Win to NT. Sidebars will look at IBM’s OS/2 and at MS plans for NTW 5.0 and Memphis.
PC Week will also feature a review of IE 3.0 for the Mac. Based on our meeting with the editor, we expect this review will be neutral/positive. The reviewer was impressed with the customization of the product and the other features. The review will also say that IE is the fastest product.
Seattle PI ‘s Jim Erickson will run story about MS’ Talisman project based on interviews with Jay Torborg and Jim Kajiya. Erickson will focus on development of Talisman and how it will enable higher quality 3D graphics for a lower price for future PC users. PI plans to run story with photos as large sidebar next to syndicated NYT’s story by John Markoff on 3D on the web.
ON CAMPUS
Caryn Gillooly, Information Week, will be on campus Monday.
Stuart Johnston, of Information Week will be meeting with product managers on the Active Directory and TCP/IP issues.
Wednesday, David Bayer, a financial analyst from American Express Financial Advisors, will be on campus for a visit with the IR department.
PRESS RELEASES
Twelve Major Systems Integrators Offer Worldwide Design, Deployment Services For Microsoft Commercial Internet System
Kelly Stremel 9-Dec
MCIS SI momentum press release, announcing 12 new systems integrators
Kelly Stremel 9-Dec
Microsoft Unveils Microsoft Internet Explorer 3.0 for Windows 3.1
Erin Cox 9-Dec
Microsoft Announces Broad Availability of Microsoft Exchange Server 5.0 Release Candidate
Helene Love 9-Dec
Microsoft, Intel Deliver First Standards-Based Internet Video Phones
Marnie Bolton 9-Dec
Microsoft Announces Immediate Availability Of Standards-Based Video Phone Support in NetMeeting
Kathy Gill 9-Dec
Microsoft’s Mungo Park Explores Space Wtih NASA’s Next Atlantis Shuttle Mission
Sandra Sais 9-Dec
Visual InterDev
Christian DeNike 9-Dec
Microsoft Announces General Availability of The Microsoft Network
Samantha Lagerloef 10-Dec
Microsoft Ships Internet Information Server 3.0
Darren Stordahl 10-Dec
Microsoft Ships Transaction Server 1.0
Darren Stordahl 10-Dec
Visual Basic 5.0 Control Creation Edition momentum release
Diana Galbreath 10-Dec
Microsoft and USWeb Form Strategic Alliance To Help Businesses Take Advantage of the Web
Pam Kahl/Jerry Dale 11-Dec
ON THE HORIZON
Winter CES 1/9-12 Las Vegas
FOSE ’97 3/18-20 1997 Washington, DC
___________________________________________________________________
Most of my former Evangelist co-workers evacuated the Developer Relations Group to seek comfortable vesting jobs in the organization that became MSN but knowing that I was not destined to remain at Microsoft much longer I remained in DRG managing a team of gaming and media technology evangelists. Eric Engstrom and Craig Eisler had been promoted and put in charge of teams developing media technology for the Internet. Craig, who had written the first version of DirectX went on to build the Windows Streaming media server platform, while Eric, who had been the Project Manager for DirectX became responsible for the Windows media client and other web related media technologies. As I have previously recounted the core of the DirectX team was moved under a team from Nathan’s Advanced Research Group to work on Talisman.
Our contributions to online media after DirectX included naming the ActiveX API, doing the deal with Macromedia to ship the Flash plugin with IE, building the Windows media player and server, shipping the VRML 3D plugin for IE and starting development on the technology that would ultimately become Windows Update… however our most exciting and significant contribution may have been a technology that never shipped… officially.
John Ludwig, who had been made responsible for the Internet Explorer team after shipping Windows 95 asked us what WE would do to make Microsoft’s Internet Browser the ultimate weapon against Netscape.
http://venturebeatprofiles.com/person/john-ludwig/
http://theludwigs.com/
Of course our answer was much deeper media integration with the browser experience. Web pages at that time were mostly passive text punctuated with a few images and hyperlinks. Most of the U.S. was connected online via 56.6Kb modems. We advocated deep investments in more advanced media streaming and compression technologies as well as Java integration with DirectX to enable extremely interactive rich media applications to run inside the browser. John gave Craig and Eric, who now worked for him, the nod to “go crazy” and they created the DirectX Media SDK for the web.
—–Original Message—–
From: Eric Engstrom
Sent: Wednesday, May 28, 1997 7:03 PM
To: ICCD Multimedia; IHammer All
Subject: Thank you! Congratulations!
Importance: High
You won. We all won. We are on the road to IE4 and we have made some absolutely amazing quality strides in the last two weeks. I have some personal proof of this. I am very proud of the progress this team has made and the technology that we are going to deliver to the internet and the world. The challenges are not over, but we are well on our way to victory. Each one of you played a critical role in this, each of your actions contributes to the teams success. We are in this together.
For those not on the DirectX media team… there was a bet between the team and Craig Eisler and myself. If the DirectX media team could be self-host for five days in a row over a fourteen day period, Craig Eisler and I would shave our heads, if they couldn’t then Cristiano Pierry would shave his head and Channing Verbeck would go swimming in our wonderful pond.
Eric “Mr. Clean” Engstrom
Eric Engstrom (Left) and Craig Eisler (Right) celebrate hitting a DirectX Media milestone by shaving their heads. Eric went on to be a key witness for Microsoft at the DOJ trial. Craig Eisler, the engineer who wrote most of DirectX 1.0 is responsible for Microsoft’s XBOX ONE online services today.
____________________________________________________________________________________
http://www.alexstjohn.com/WP/download/DX%20Media%20White%20Paper%201997.pdf
DX Media Keynote Slides" rel="attachment wp-att-4336">
Link to Eric Engstroms .ppt on DirectX Media
The technologies included with DirectX Media were almost two decades ahead of their time, featuring 2D and 3D media capabilities that are only now becoming widely accessible on the Web via HTML5 and the most recent generations of Adobe Flash. Many of you will recognize DirectX Media from its more recent incarnation, Microsoft Silverlight. Although Microsoft is frequently and understandably slagged for its lack of innovation, DirectX Media was a WILD exception to this norm. Despite its amazing capabilities, DirectX Media (with the exception of DirectShow) was never widely adopted, in part because I refused to promote it… Why? It was not the media technology any of us had really wanted to make for the Web. DirectX Media was amazing technology but not practically accessible to the nascent community of web developers who had no experience with rich media authoring. The prototype technology for DirectX Media was a simple Java layer wrapped around the DirectX family of API’s developed for me by a Jr. Microsoft engineer named Matt Wilson (who went on to run Microsoft’s MMOG development efforts) and a contractor from the VRML community named David Petchey.
Although rudimentary and initially insecure for real-world web applications, the DirectX Media prototype gave incredible demo which lead to the authorization for Craig and Eric to create the official DirectX Media SDK with one critical caveat. They had to take on a team from Nathan’s Advanced Research Group that had been developing a media scripting API called “Active Animation” among other things. The API was a powerful but simple way to script a wide range of media capabilities in the web but in my opinion was completely useless for practical interactive UI design and gaming. Although Eric and Craig shared my view they were told that they could either take the Active Animation team and “make them successful” or NOT own Microsoft’s Internet Media Strategy. They grudgingly embraced the team and made a valiant effort with them to wring some value from the technology. Before making that decision however, we took a precaution, in what we believed to be the “likely” event that the team was never able to deliver commercial grade technology OR it was a flop, we would secretly ship the original prototype DirectX Java wrapper undocumented as part of IE 3.0 so that it would have an installed base if we ever needed to demonstrate IE blowing away Netscape’s media capabilities. The decision to secretly ship the DirectX Java wrapper prototype had a fascinating impact on the history of online media, which I will return to shortly.
Meanwhile Microsoft had finally cowed Apple and was getting everything they wanted from Apple, including shipping Microsoft Internet Explorer as Apple’s web browser… and twisting the screws on Apple’s own competing QuickTime media technology.
http://en.wikipedia.org/wiki/Apple_Computer,_Inc._v._Microsoft_Corporation
“In 1997, three years after the lawsuit was decided, all lingering infringement questions against Microsoft regarding the Lisa and Macintosh GUI as well as Apple’s “QuickTime piracy” lawsuit against Microsoft were settled in direct negotiations. Apple agreed to make Internet Explorer their default browser, to the detriment of Netscape. Microsoft agreed to continue developing Microsoft Office and other software for the Mac over the next five years. Microsoft also purchased $150 million of nonvoting Apple stock. Both parties entered into a patent cross-licensing agreement.[11][12]”
Eric Engstrom, who was responsible for Microsoft’s dealings with Apple on media support in IE, would later testify in the DOJ trial about the nature of Microsoft’s negotiations with Apple at that time after Apple accused Microsoft of trying to force them to drop their own QuickTime platform… which was true… we lived for that s**t… In that era Microsoft had Apple well under its boot, it was the rise of another company (RealNetworks) founded by a former Microsoft Executive, Rob Glasser that was really causing competitive fits in the halls of Microsoft.
Meanwhile, Microsoft Evangelists were systematically invading and undermining Netscape’s turf.
_____________________________________________
From: Leo Artalejo
Sent: Saturday, June 14, 1997 4:07 AM
To: Developer Relations Staff
Cc: Brad Chase
Subject: TR: MS technical event at Netscape DevCon3
Read this clip:
Planned Events:
June 12: DevCon Invasion. Low-key event near Netscape DevCon to education developers about DHTML and CDF
In short, Operation DRG-Storm was anything but low key! Garth and company organized an amazing show of MS presence around the corner from DevCon. We hired folks to pass out invites in front of the San Jose Convention Center directing attendees to the Gordon Biersch Brewery to get the hands-on scoop about IE 4.0, DHTML, and CDF. We expected ~200 folks to drop by in between sessions to grab the IE Platform Preview, a t-shirt, and play with IE. We lost count early on and around 7 pm the bar manager flagged me down to discuss what to do about the line of attendees stretched downstairs, around the corner, and out the front door of the brewery! Several press reps commented to me about the amazing turnout. Between Sara, Garth, Will, Jason, and myself, we talked to quite a number of attendees who were fresh off the floor of DevCon.
General comments voiced to me:
“Netscape has really improved the interaction between JavaScript and Java applets with the announcement of their Crossware platform. Does Microsoft plan on doing this?” Answer: We already do this by exposing Java applets as COM objects.
“I started with Netscape early on and I’ve been a big fan of Navigator, until I saw IE 4.0 and now I’m starting to think that you guys have really advanced the state of the browser.”
Netscape says that CDF is just another way to author metacontent and that I can produce channels for Netcaster by cutting and pasting 5 lines of JavaScript code into my web pages. Answer: Yeah, right.
Netscape evangelist: “So, when are you gonna ship this thing? Do you really think it will be ready in September?”
Word from Netscapees was that internal mail was circulated at NSCP notifying employees of the MS event, so we had quite a few Mountain View types checking out the scene.
This was a huge win for Microsoft! Our presence on the Netscape turf was executed respectfully and gave attendees the chance to voice their concerns about both platform offerings in a very hands-on environment. We should definitely consider repeat performances as appropriate.
______________________________________________________________________________
In spite of this period of remarkable technology momentum and innovation for Microsoft, failure was not an option. Just in case shipping exciting and superior products didn’t win consumers over voluntarily, another strategy was at work to ENSURE victory over Netscape in any event. The idea of “Push Technology” had taken root at Microsoft, so the strategy of deeply entangling Microsoft’s Internet Explorer technology with the Windows OS to ensure that the two were inseparable was LINKED to the goal of using this technology to establish a permanent and persistent internet relationship with every Windows user on the planet. In the earlier email from Yusuf Medhi he mentions a deal with PointCast and “Active Desktop”. These deals were part of an initiative to craft the next generation Windows desktop to essentially become an active Window into the internet via Microsoft. In other words, the grand plan was for there to be NO BROWSER just web elements dropped on a user’s desktop that connected to live information and content feeds. Once delivered the idea of a separate browser application or the web as a separate experience from the Windows desktop would be dead. Although this effort was “buried” during the DOJ trial, Microsoft never ceased to attempt to establish this relationship with Windows users via the VISTA sidebar and the Windows 8 desktop and appstore roughly 15 years later.
Up until early 1997 everything was business as usual at Microsoft despite hints of a DOJ investigation. The email featured at the top of the article from Yusuf Medhi is the FIRST internal email I could find that makes any mention of the inquiry. In Pt. 2, I’ll recount how it all began to unravel horribly for Microsoft. Following are a few other random documents and items relevant to that period. Also note that this blog’s archives are full of stories from this era that collectively paint a much clearer picture of where Microsoft was at in its peak.
This was the second reference I found to the DOJ trail dated May, 1997. It was a link to a news item that was widely circulated internally.
************************************************************************
Microsoft Is a Three-Letter Word
U.S. District Judge Thomas Griesa approved a settlement between IBM and the
Justice Department that will dissolve the remainder of a 1956 consent
decree regarding an antitrust action brought against IBM in 1952. The
consent decree mandated that IBM create a separate computer services unit
that had to pay full price for any IBM products resold in conjunction with
the services. Additionally, IBM was forbidden from discriminating in
providing maintenance services in favor of its lease customers as opposed
to its purchasers.
It has taken over 40 years to clear a decree originally designed to thwart
IBM’s anticipated dominance over the computer market. In 1956, computers
were a mystery to most people, placed in hermetically sealed glass houses
and cared for by technicians donning white coats. After 40 years, the
computing industry has gone through a metamorphosis so vast that children
routinely install programs on home computers that have more processing
power than existed in totality in 1956. Nevertheless, the consent decree
served its purpose — IBM is no longer the dominant player in the computer
market. However, history does tend to repeat itself, and yet another giant
appears to be rising to a dominant position in the computing world, placing
it’s center in Redmond rather than Armonk. With its likely dominance over
parts of the computing world and growing influence over the information
access industry, it may only be a matter of time until the DOJ finishes all
the possible investigations and begins to treat Microsoft like a
three-letter word.
************************************************************************
This is an internal email from June, 1997 that helps to illustrate how extremely aggressive and competitive Microsoft’s culture was in that era. We were literally RAVENOUS to wipe out competitors.
—–Original Message—–
From: Iain McDonald (Exchange)
Sent: Tuesday, June 03, 1997 2:00 PM
To: Exchange Status; MS Exchange Talk; SIG – Messaging
Subject: Exchange Osmium Preview Release Ships!
Today we shipped the Exchange Osmium Preview. Not only have we improved the best collaboration & GroupWare Server on the planet – the amazing thing is, we did it when we said we would.
June 3 has always been a risky date, especially seeing the Code Complete dates were a week later than originally planned. We did make it a little easier for ourselves by defining this release as a non production release. However, anyone who sets up the server will see that it is of higher quality than some of our competitors shipping products. The cool thing is we’ll only get better & better & better…
The Postscripts contain a summary of the Preview release constraints, features, the system requirements. The preview release will be available for the field sometime between now & Thursday morning on \\productsX\beta\sys\Exchange.all\Osmium. DO NOT give copies of this software out to customer without asking permission from the Exchange team (mailto:jeffcook).
Finally, there is no rest for the wicked (OK, a couple hours on Friday morning when we go to see ConAir) – we have to turn the battleship around, & focus on RC1 in late July. That will be a production release - it will require a lot of work to get it stable, scalable & knock out a couple more of both Netscape’s & Lotus’ front teeth.
Congratulations to the development team & all who helped us get this out.
Regards,
Iain McDonald
Program Manager
Exchange Server
___________________________
These are links to internal PR documents promoting IE 3.0 for Windows 3.1 from that period.
WIN31PR
IEWin31Demo
The post The Microsoft DOJ Trial Pt.1 appeared first on The Saint.