
(Photo: Doc Searls)
Brad Smith is keynoting the United States v. Microsoft: 10 Years Later conference at Harvard Law School. Bits and pieces from his talk:
What were the mistakes we made? What did we learn? How did we change?
The real question for Microsoft is how did we change, and why did we change, as a result of this experience. And how did the industry change? It was clear that MS needed change. The changes they made fall into three principles categories, of which brad focuses on: Getting out and working it out. Getting out by listening better what people had to say, and build a more relationship based approach to dealing with a number of these issues. An imporant day for MS was the day Judge Nutelli’s decision was issued.
Between MS and Sun: ‘Sometimes it’s your differences that divide you, sometimes it’s your similarities that separate you’. Both companies were heavily driven by engineering cultures. Part of the problem between MS and Sun were these similarities — neither spent enough time talking with each other. By April 2004, they resolved those issues, and the same with Real Networks.
But it hasn’t always worked. They spent months trying to reach an agreement with the European Commission. Instead, they headed to court in Europe.
(3) We need to put together some principles that will tell people that this is what MS can be expected to do. “The Windows Principles” published in July 2006. They essentially said (1) even if the judgement expires, they would still operate in accordance w/ those principles. And (2) we’ll a0pply them to some other important areas as well. The principles have played an important role inside the company to help decision making.
The industry itself is changing. What are those significant changes in the past 10 years that have dramatically affected the industry? The internet and technology — which Brad refers to Bill Gates’ words — “The Internet Tidal Wave”. Internet distribution has profoundly changed the equation. Also, more and more developers are writing their applications for the
The ubiquity of the web has transformed computing.
A second change unfolding over the past 10 years are the changes in the nature of the PC market. In 1998, there were hundreds of companies selling significant numbers of PC in the US. Now, the PC market has consilidated. Two companies account for half the PCs being sold in the US. Ten years ago, people were concerned that the suppliers of critical components for PCs had a superior negotiating position when they sat down with a PC manufacturer.
A third change that Brad points to is the remedy in this case. The remedy has had an impact. Brad refers to JZ’s slide about ensuring that MS wouldn’t control all the aspects of (?). The remedy was designed not to only address issues related to the browser – but also messaging software, media, email.
Brad notes that it’s interesting there’s a market entrant a decade later — Google. The one interesting thing about the remedy, the implementation hasn’t been confined to those 5 specific areas. Including desktop search. Brad thinks that some of that reflects on how the trial itself was part of the remedy. For MS, and for every company in the country watching what MS went through, was an intense experience and a sobering reminder of solving small problems before they get bigger.
“We all live in a world today with far greater transparency than 15 years ago. We live in the world where a higher amount of conversations, actions are recorded today (IM, search history in Google). The world is starving to see more of that transparency in the trial.”
Another aspect of the trial that fascinated Brad was the role of the media. The pace of media coverage was accelerating, the media was fragmented. We’ll all remember the immediate news coverage, in part because of cable news channels, and internet news services wanted to push out news immediately. If you want to make your case in a court of law, you have to make it in the court of public opinion as well. In addition to living a public life, you have to get out and enage, and share your information.