29276 Federal Register / Vol. 67, No. 86 / Friday, May 3, 2002 / Notices

TO APPENDIX TO MEMORANDUM OF

AMICI CURIAE IN OPPOSITION TO

PROPOSED FINAL JUDGMENT IN CIVIL

ACTION NO. 94–1564

SIGNED BY GARY REBACK

2ND STORY of Level I printed in FULL

format. Copyright 1994 Network World, Inc.

Network World July 25, 1994 94–1564

FILED FEB 14 1995

SECTION: TOP NEWS; Pg. 4

LENGTH: 724 words

HEADLINE: Microsoft free at last?;

Ruling still lets firm incorporate apps in its

OSes.

Clerk, U.S. District Court

District of Columbia

BYLINE: Michael Csenger and adam Gaffin

BODY:

Washington, DC

The antitrust settlement Microsoft Corp.

reached with the Justice Department skirted

an issue central to network users, paving the

way for the software giant to continue

integrating applications with its desktop and

network operating systems.

The consent decree, announced July 16,

focused almost entirely on the way Microsoft

sold operating systems to hardware vendors.

But it does not prevent the company from

integrating applications into the operating

system itself.

Competing software vendors such as Lotus

Development Corp. had long alleged that

Microsoft’s applications division received

unfair information from its operating systems

division that gave the company a leg up on

the competition.

Some analysts and users said the decree,

which also poses stricter controls on the

royalties Microsoft can collect from personal

computer vendors, leaves the path clear for

Microsoft to mop up competitors that sell

stand-alone applications, resulting in more

limited user choice down the road.

SKEPTICISM

But others said Microsoft has yet to prove

to the market that it has operating systems

and networked applications worth betting a

business on. ‘‘A lot of its networking

products are either futures or first-generation

products,’’ said Jamie Lewis, president of The

Burton Group, a Salt Lake City consulting

firm. The company faces entrenched and

growing user bases for both Novell, Inc.’s

NetWare operating systems and Lotus’’ Notes

groupware applications, he said. Users also

expressed skepticism.

‘‘Microsoft promises Chicago and Cairo

and a whole lot of networking, but the

question is, will it work before they run out

of cities to name these things after?’’ quipped

a network manager whose major brokerage

house network runs on Unix.

windows NT is not a truly open

environment, he said, ‘‘Because if Gates

doesn’t have it then neither do you, and I’d

rather not put myself in his hands. That’s

why we’ve standardized on Unix for our

trading floor.’’

Frank Caro, technology transition team

leader for Otis Elevator Co. in Farmington,

Conn., cited interoperability problems with

Microsoft’s current Windows implementation

of Transmission Control Protocol/Internet

Protocol as an example of the company’s

network shortcomings.

‘‘We’ve been trying to get into the

networking capability of Microsoft’s products

and find there’s one con, non theme:

NETBIOS,’’ Caro said. Microsoft does not yet

support native TCP/IP, but uses NETBIOS or

NETBEUI encapsulated within TCP/IP, he

said.

‘‘we’re totally uninterested in any

approach like this; it can’t handle a network

of more than 50 users and is terrible over the

wide area,’’ Caro said.

And Windows NT has proved unable to

handle the applications that Otis wants to

take off its mainframe system, because

Windows NT is not a multiuser environment.

But Caro respects Microsoft’s ability to

change course as necessary and awaits the

promised native TCP/IP support in Chicago.

‘‘That one feature alone is going to cause

dramatic change in network connectivity,’’

said Nick Lippis, principal at Strategic

Networks Consulting, Inc. in Rockland,

Mass., referring to Windows’’ TCP/IP.

Native TCP/IP support for Chicago could

help Microsoft cut into Novell’s installed

NetWare client base by providing an

alternative to Novell’s Internetwork Packet

Exchange (IPX) protocol. If the desktop

operating systems supported TCP/IP directly,

‘‘why continue with IPX?’’ Lippis asked.

NOVELL NOT WORRIED

‘‘I laugh when I hear people say it’s all over

for Novell now, we should pack up and go

home,’’ said David Bradford, vice president

and general counsel for Novell.

‘‘Microsoft has come against Novell

[several] now with their networking

products, and we’ve beat them every time,’’

Bradford said.

Bradford also noted that this consent

decree does not close Microsoft’s books

forever. ‘‘They will be monitored, perhaps

even more so than before,’’ he said. ‘‘The

industry and consumers have an ally in the

Justice Department.’’

Frank Dzubeck, president of

Communications Network Architects, Inc., in

Washington, DC, agrees that the case may not

yet be closed.

‘‘If Microsoft gets very aggressive and starts

burying things in their operating systems,

then this whole issue will be revisited, he

said. But it will require that another company

first go bankrupt.’’

LANGUAGE: ENGLISH

LOAD-DATE-MDC: July 27, 1994

TO APPENDIX TO MEMORANDUM OF

AMICI CURIAE IN OPPOSITION TO

PROPOSED FINAL JUDGMENT IN CIVIL

ACTION NO. 94–1564

SIGNED BY GARY REBACK

Business Day

M??

The New Work Times

Microsoft’s Barely Limited Future

By JOHN MARKOFF

??

SAN FRANCISCO, June 17—Rath?? than

reining in the Microsoft Corporation, the

consent deeree that the Justice Department

announced over the weekend with Microsoft.

the world’s largest software publisher, frees

the company to define the computer

mudstry’s ground ?? through the rest of the

decade.

The agreement leaves ??intouched what

many computer in??justry executives say is

Microsoft’s ?? advantage—that it devel??ps

both the basic operating-system ??oftware

that makes personal com??ters run, known as

MS-DOS. and ??pphactons software, like

word-pro??essing programs or spreadsheets,

??nat perform spec?? ??

‘‘Microsoft s whole empire is based in the

interlocking nature of their ??perating-system

and application oftware.’’ said William Joy,

a ??ounder of Sun Microsystems, and the

??uthor of one version of the Unix Perating

system.

??Vol a Central Issue Microsoft officials

said Saturday ??nal issues related to the

relationship ?? their operating software and

their ??ppicaons programs had not been

??ocus of their ?? nego??anons with us??ce

Department officials.

MS-DOS and the Windows proram, which

makes DOS easier to ?? are installed in

millions of com. ?? worldwide White the

Jusuce ??epartiment has decided that Micro??

does have a monopoly in opera?? ?? systems,

it ?? that the ?? changes the c??unsent decree

spells ??ut provide a remedy.

Yet many Microsoft compet??nors ??ce a

broader problem, as well: the ??ne between

where the operating system ends and the

applications pro??las start is increasingly

being ??lurred by advances in technology.

??Smaller compe??tors with innovave ideas

in businesses as diverse as ?? man. ??

compression,

?? creates more storage space on disk, and

screen savers, which pre?? ent damage to

mounors, are finding ?? their business is

evaporating because Microsoft keeps adding

such programs to ?? operating system as ??

periodically brings out an updated version.

A Microsoft’s operating system scheduled

for release next year, called Chicago, will

acceler?? the process The program will

mer??e DOS and Windows and will include

electronic mail, remote access, filesearching

functions and screen savers. Since

introducing MS-DOS in 1981.

Microsoft has continually campaigned to

expand the ?? of what computing functions

belong inside the computer operating system.

The early vers?? of DOS were small

programs that did ?? more than control the

storage and ?? of data and start and stop

applications programs. But in the 14 years

that followed, Microsoft’s ??rating systems

have greatly expanded the servtees they

provide to users and programmers The other

important issue not specifically addressed in

the consent decree is whether Microsoft has

been able to leverage us virtual monopoly ??

operating systems into domination of

applications software—a far bigger and more

lucrative market This matter is of great

concern to companies like Lotus

Development.

Boarland International and Novell, and its

recently acquired Wordperfect—which

specialize in applications software. About

half of the 50 million computers that run

Windows, for example use Microsoft’s word

processor, called Word, and its spreadsheet,

Excel.

It was for that reason that lawyers at the

Federal Trade commission toyed two years

ago with the idea of breaking Microsoft into

two companies, More recently, Justice

Department investigators are believed to have