Microsoft's Ballmer Spars With Analysts
Software giant's leader defends practices and products, and predicts antitrust victory.
Nancy Weil, IDG News Service
Wednesday, October 18, 2000
LAKE BUENA VISTA, FLORIDA -- The antitrust case hasn't changed Microsoft's practices; the continually increasing prices for Office are justified, and the
software giant won't release its intellectual property anytime soon, says Steve
Ballmer, president and chief executive officer.
Ballmer was in the firing line of questions from analysts Wednesday at
market research company Gartner's ITxpo conference here.
Ballmer, who doesn't shy from confrontation, was on the defensive but
clearly enjoying himself, making the keynote interview one of the more edgier
chats at ITxpo.
The Gartner analysts returned repeatedly to Microsoft's licensing
policies and practices, which they say some customers find restrictive.
Product Price Hikes Defended
Microsoft is committed to using open standards and protocols in its
products, but when it comes to sharing proprietary intellectual property the
company is, and will be, restrictive in its licensing terms, Ballmer says. The
company isn't in business to give away its intellectual property, he says.
He further defends price increases, specifically for Office
work-productivity software. Office costs three times more now than it did five
years ago, noted Gartner analyst Tom Austin. But Microsoft has enhanced the
product, and that's why customers keep buying it, Ballmer answered. He also
questions the percentage increase, noting, "the notion that there's been a 300
percent increase is not reflected in our financial results."
Austin replied that he isn't privy to all of Microsoft's financial
books, but that the issue is that software prices are up and continue to rise.
"If the products have value, people will buy them. If they don't have
value, people won't," Ballmer retorted.
Ballmer: Break-Up Won't Happen
No interview with a top Microsoft executive would be complete these days
without covering the government's antitrust case against Microsoft. (See "Microsoft in Court.")
Ballmer insists that the case has not altered the company much, save for
how top officials phrase their e-mail exchanges. Internal e-mail was at the
heart of the Department of Justice case against Microsoft. Executives now are
much more conscious of "tone, what words you use in e-mail."
"I think that's probably okay, in general, by the way," he says, adding
that internal e-mail might be phrased more harshly at times and "softening that
is probably not a bad thing in most regards."
Microsoft won't be split into two, Ballmer predicts. He says the『final
outcome』most certainly will not strictly follow Judge Jackson's order.
"It is certainly the case that something will change in this appellate
process," Ballmer says.
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