Archive of UserLand's first discussion group, started October 5, 1998.

Re: What would peace look like?

Author:Chuck Shotton
Posted:12/2/1998; 7:36:18 AM
Topic:What would peace look like?
Msg #:688 (In response to 684)
Prev/Next:687 / 689

I'm not doing any "math". I didn't say they were stupid for finally looking out for their shareholders. I just pointed out that staking your product's success on what is essentially an infrastructure O/S component is just asking for it. It was "ill-advised" for Netscape to continue trying to eek revenues from their browser and server markets for as long as they did.

The shift to NetCenter as a profit center was certainly an indication that they realized this in the end. The fact that they took $4B worth of AOL stock is still a bit of a cop-out in my opinion. It shows that they'd run out of gas as far as being able to increase shareholder value with commodity products. In that regard, I applaud them for having the sense to take the deal. It was a cop out because they should have formulated a more viable business strategy 2 years ago instead of having to pack up the tent now.

Still, there's no shame in letting an O/S vendor do all your dirty work for you. Sure, Netscape "invented" the graphical browser. And yes, their server products probably have nicer features than the budget models that ships with NT. But the simple fact that Microsoft identified these products as commodities that should be part of the O/S (as did IBM, Apple, Sun, and SGI) should have been ample warning to Netscape that they either needed to get into the O/S business or out of the Web client/server business. That they didn't is damning.

They passed up several opportunities to get into the O/S business. With their high-flying stock prices, they could have fired off a couple of $4B acquisitions themselves, acquiring Apple, SGI, or maybe even Sun. Instead, they did nickle and dime sized acquisitions for tiny pieces of technology, most of which have fallen by the wayside or are no longer relevant. With their stock in the basement, several quarters of flat earnings, and no new products on the horizon to move the market, their exit strategy makes perfect sense.

In that regard, you're right, they are out of the picture. But their browser still persists and browsers still exist as "separate applications" in the minds of users, potential competitors, and the DOJ. Until that mindset is abandoned, it's still an impediment to "peace". Believe me, I've stopped doing *that* math. I decided long ago where these protocol and standards implementations belonged. You sure don't see me crying because I don't get to spend my days supporting a commoditized Web server product on the Mac. ;)

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