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Microsoft’s Back Alley Deals

Posted: December 31st, 1969 | Author: | Filed under: Companies, Sun Microsystems, Uncategorized | Tags: | No Comments »

Microsoft's Back Alley Deals

Picture of Irv Owens Web DeveloperIt is normal for Microsoft to be afraid. I mean Google recently announced an alliance with Sun. My question is why are they making deals with Yahoo and Real. Let's take a look at both.

The deal with Real is clearly a stab at Apple. In order for Microsoft to fight its way back, they have to work their way back into the user's PC space. Right now Apple has that. They have the first thing people do when they get back to their PC and the last thing they do before they leave their PC. This is something that must be difficult for Microsoft to accept. So the partnership with Real is supposed to make this better. Now, I want to understand this properly. Microsoft initially is considering a partnership with Gator, known for their unscrupulous behavior, placing adware and spyware on users' computers unaware. Fortunately they decided against this suicidal path.

Now they are interested in partnering with a company that “reverse engineered” Apple's algorithm to prevent their death. Real still has large contracts with education who would much rather be using Apple's QuickTime algorithm. Apple has accused them of adopting the ethics of hackers. Real is claiming that they are forced to use these tactics because Apple has an unfair hammer lock on the industry. This is bull, do you steal from your neighbor because they have a better house than you do? Would that justify stealing from them? Why would Microsoft want to partner with a company like this then? Microsoft knows how short their time is. They know that Google is dictating to them. They are desperate.

Now, for the second part of its dealings. The partnership with Yahoo for sharing IM solves a need for both companies. Microsoft can begin a strategic alliance with Yahoo to challenge Google on their level, and Yahoo gets a wider audience and possible cooperation with its software on the OS level. It could also mean breaks on their licensing of the windows media codec. So what is wrong with Micrsoft doing this? Well, nothing. In fact this is one of the best strategic moves that Microsoft has done in years. It will help them punish AOL for refusing them, and it will hopefully force Google to do something rash, which is what Microsoft desperately wants. They need an opportunity to take the lead on Google. The question is whether or not Google will take the bait and waste a bunch of money on AOL. Indeed the battle for the future of computing is actively moving out of the cold war era and into the active armed conflict stage. Things could get strange for a while with interoperability, but ultimately it will benefit consumers.