American History 1988
Chapter 362 - 351 Gates Changed His Mind

Chapter 362: Chapter 351 Gates Changed His Mind

Gates was stunned by the content displayed by the browser, from text to images, then to sound and video.

All these carriers of information could be presented by the browser.

"A formidable competitor is being born on the Internet," was the first thought that popped into Gates’ head.

The reason Microsoft could control the entire microcomputer industry lay in the fact that it controlled the interface through which people used computers—the operating system.

Now the browser controlled the interface to the Internet, which meant that if Microsoft could not take it back, it would be at the mercy of others on the Internet in the future.

Gates didn’t care about Netscape, the company that developed this browser, but rather the entire application ecosystem supported by the product itself.

Its standards would cover almost every computer, and other software would likely use these standards in the future.

Fear spread wildy in Gates’ heart, and he wondered if Microsoft’s operating system could become "replaceable" once these standards developed to a certain extent.

The night of Internet surfing completely changed his original views, and that night Gates did not go home.

He stayed at Microsoft’s headquarters in Redmond and wrote throughout the night, penning the memo "The Internet Tidal Wave".

"They are executing a cross-platform strategy, embedding key APIs in the client to achieve replaceability of the underlying system."

The implication of this sentence was that Netscape was trying to compete with Microsoft for dominance over developers.

If these developers could provide functions equivalent to personal computer software, then Netscape’s browser could replace Microsoft’s operating system.

"Internet enthusiasts are discussing a frightening possibility: whether they should crowdfund to create something far cheaper than personal computers but sufficient to meet the needs of Internet browsing."

This was what Gates came across on a Yahoo forum while surfing the Internet using the browser.

If such a thing were truly made, it would be disastrous for Microsoft.

This meant that people could completely abandon Microsoft while still fulfilling their Internet needs.

Gates thought a lot, and in any case, the browser was of paramount importance.

It would completely change personal computer users’ habits and could potentially replace Microsoft’s core position as a standard-setter.

In fact, this was happening, because Gates had already learned of Netscape’s sales strategy.

It was free for most groups and relied on the issuance of commercial licenses to profit.

The key step was inviting other developers to develop various applications and plugins for the Explorer browser.

Comparing carefully, isn’t this just like Microsoft’s current software ecosystem plan?

Windows 95’s application software had gathered thousands of developers this way.

Now Netscape was repeating the same action, using the browser as a platform to derive various development tools and products.

Gates admitted that there had been some mistakes in his previous judgment, and he had been too blindly confident in his own vision.

First, he underestimated the value of the Internet to users. The night of surfing gave him the perfect answer.

Second, he underestimated the IT industry’s ability and willingness to create value for users using the Internet and Web technologies.

Yahoo was the best proof of this, along with the astounding web email services.

Third, he underestimated the ability of Internet companies to develop applications to replace Microsoft’s market position.

Netscape had done just this, and it was now the biggest threat to Microsoft.

Counting the days, there were less than three months left before the release of Windows 95, and time was running out.

Thus, the day after completing the memo "The Internet Tidal Wave," Gates summoned all of Microsoft’s senior executives.

"Take a look at this memo first. We are losing our dominant position in the Internet market," Gates said, puzzling many who, if they remembered correctly, thought Microsoft seemingly had no business related to the Internet.

Only Brad Silverberg had an excited look in his eyes; he knew Gates had made a decision.

While everyone was browsing the memo, Gates, sitting at the head of the table, began to articulate his viewpoint.

"We all have high hopes for Windows 95 and believe that it will generate profits for Microsoft.

We yearn to strike while the iron is hot and achieve Microsoft’s ultimate goal.

That is to develop all the generic software for personal computers! Secondly, to prevent other companies from achieving a similar level.

By accomplishing these two goals, we can ensure Microsoft’s unique position in the market.

But now new competitors are challenging these two goals, and they have even achieved some success."

With the "The Internet Tidal Wave" memo in hand, everyone understood who Gates was referring to as competitors.

However, a dramatic scene unfolded, as Karen Fries, the marketing head of the Windows 95 system, disagreed.

"The browser is a very popular application software, and its popularity can to some extent benefit the launch of Windows 95.

Because the more users like browsers, the more motivated they will be to buy personal computers, and then the sales of Windows 95 will follow suit.

Our negotiations with software underwriters are going smoothly; they are very interested in the new system.

And this all happened after we included Netscape’s name on the submitted list of software suppliers, which they repeatedly confirmed."

"That’s exactly the problem, Karen!" Gates pounded the table emphatically, "Netscape is too popular!"

"Isn’t this what we want? Netscape’s software runs on our system. The more popular they are, the stronger the demand for Windows 95 will be!"

As the marketing head for the product, Karen Fries wanted nothing more than for Windows 95 to be a bestseller.

"No! That’s not the issue! Netscape’s browser will be our nightmare!" Gates vehemently retorted.

"Their product is running cross-platform, and they’ve recruited a large number of developers.

What might be just some kind of plugin today can turn into an operating system overnight tomorrow.

Plus, these browsers rely on some middleware—oh right, Java.

It connects operating systems and other software, unrestricted by platform or system.

Think about how terrifying that is—they could completely drive another company into the operating system market.

This is Microsoft’s foundation! I will not allow anyone to do this!"

Rather than saying it is Microsoft’s nightmare, it is more apt to say it is Gates’s nightmare.

Regardless of which scenario occurs above, Netscape’s existence and development have driven alternatives into the market.

Gates’s business empire is only missing the last piece, and he cannot accept an ending where he falls short of completion.

The people in the meeting room looked at each other, not expecting Gates’s reaction to be so intense.

However, the number of people who held the same opinion as Karen Fries wasn’t small; they all thought Gates was overly worried.

It’s just a browser, and apart from providing users with internet access, it doesn’t serve any special function.

As for an operating system substitute? Frankly, they didn’t think Netscape had such capabilities, and the two didn’t have any similarities.

"Perhaps, we could talk to Netscape about an acquisition?" someone suggested as a compromise.

Karen Fries’s eyes lit up—this was a good idea.

"Netscape’s just been founded two years ago; it’s a young company, they probably won’t reject us."

Any software company is well aware of Microsoft’s position in the industry.

If it makes an acquisition offer to a startup, the founders behind it would probably be overjoyed.

"Netscape won’t agree." Just then, Brad Silverberg finally spoke up.

"Why?" Karen Fries and others looked over, and Gates also turned his gaze.

"Because behind it is the financier Dean Price." Silverge spread his hands. "You know his style."

Him?! The others frowned slightly, while Gates’s body jolted.

Damn! Why is he everywhere?

However, this did clarify Gates’s doubts. A startup like Netscape could challenge Microsoft’s status.

If Dean was behind this, then that explained it.

"Dean Price doesn’t lack money; he might not be interested in our acquisition." Someone shared this perspective, and it was met with agreement from everyone.

"He is considered a leader in Silicon Valley. As you know, Silicon Valley has always been competing with Seattle.

Whether it’s in the computer industry or in the software industry, the internet is likely the same."

This competition is everywhere because it concerns who is the IT industry center of America, even of the world.

When Silicon Valley had Jobs, a genius, Seattle’s Gates also often came up in conversation.

Lately, when Jobs left for NEXT computers, Gates attracted all the media attention.

With the growth of Microsoft and the accumulation of wealth, Gates almost became a household name.

But then Dean rapidly rose in Silicon Valley and in just a few years, caught up with the former.

Now from the perspective of wealth, the two are not much different, but the battle for influence over the world is still undecided.

No, on this point, Gates is currently undoubtedly stronger than Dean.

It’s due to the irreplaceable status of Microsoft’s operating system that he has such influence today.

But Netscape... Suddenly, everyone seemed to have an epiphany.

No wonder Gates reacted so strongly—he believed that Netscape was replacing Microsoft.

If his suspicion turned out to be true, it would inevitably lead to Dean surpassing him in influence.

Everyone, including Karen Fries, exchanged glances before their eyes unanimously focused on Gates.

"Brad, your team is following up on the browser project, right?" Gates finally remembered the role of Skunkworks.

"That’s right," Brad shrugged. "We got the Mosaic source code."

"I’m sorry for the disputes we had before, but the focus now is, when can Microsoft have its own browser?

Can we get it done by the launch of Windows 95?"

Gates had made up his mind. Controlling the gateway to the internet must be in Microsoft’s hands.

They had already fallen a big step behind, but they couldn’t lag any later than the release of Windows 95.

"The timing is too tight; it’s almost impossible to start from scratch.

The only option right now is to replace some of Mosaic’s code and then launch it under our brand."

This was a temporary solution, the only option. Otherwise, in just two short months, it would be impossible to develop a browser software based on the new system.

Gates thought for a moment before issuing orders.

"Put all other projects that your team is holding on hold and focus on the development of the browser.

Apply for any resources whenever you need them, and all other departments must cooperate fully!"

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