At 11:44 AM 11/9/98 -0500, David Lesher wrote:
>X-URL: http://www.microsoft.com/ntserver/highlights/editorletter.asp
>
>
> Microsoft Responds to Internal Memo Regarding the Open Source Model
> and Linux
> Posted: November 5, 1998
>
> On Monday, Nov. 2, Open Source obtained and posted an internal
> Microsoft memo on the open source model and the Linux operating
> system. Since that time, part 2 of the document has also been posted.
> These memos, written by engineer Vinod Valloppillil, were originally
> distributed within Microsoft on Aug. 11, 1998, and were intended to
> stimulate internal discussion on the open source model and the
> operating system industry. The practice of researching and assessing
> competitors is standard procedure at the company; one which our
> shareholders and customers would expect.
>
> It is important to note that these memos represent an engineer's
> individual assessment of the market at one point in time. These memos
> are not an official statement by Microsoft on the issue of open source
> software or the Linux model.
>
> The existence of these documents demonstrates the vigorous competition
> that exists in the operating system industry. Microsoft does see Linux
> as one of many competitors in the lower-performance end of the general
> purpose server industry and the small to medium-size ISP industry.
> Microsoft also recognizes and has identified several challenges
> inherent to this particular business model (many which are outlined in
> part one and part 2 of these memos.) Furthermore, Microsoft has an
> obligation to its customers, business partners and stakeholders to
> monitor competition, one part of which is encouraging active interest
> by knowledgeable engineers and active discussion of the issues.
>
> Linux and the Open Software Source Model - A Question and Answer
> Session With Ed Muth Enterprise Marketing Group Manager, Microsoft
> Corp.
>
> Ed Muth, Enterprise Marketing Group Manager, Microsoft Corp. Catalyst:
> Internal Microsoft memos in the press regarding the open source model
> and Linux in particular.
>
> Q: Are the Halloween documents posted on Open Source genuine?
>
>>Note that Open Source above was a link.....
>
> A: Although Microsoft has not attempted to perform a line-for-line
> review of the posted documents, they do appear to be confidential
> Microsoft documents with annotation, sent internally to select staff
> and management on Aug. 11, 1998.
>
> Q: What was the purpose of creating these documents?
>
> A: It is standard practice at Microsoft to research, write about, and
> assess all competitors, from both a business model and technical
> perspective. We would be doing a disservice to our shareholders and
> customers if we were not monitoring and assessing market conditions
> and competitive offerings. Accordingly, such assessments of technical,
> business, and competitive issues are a routine practice across all
> industries and types of companies.
>
> Honesty and creative ideas in such documents are critical to effective
> communication and the free flow of ideas. It is always unfortunate
> when a company’s confidentiality is compromised, as it was in
> this case by the unauthorized or unintentional release of this
> document.
>
> Q: Is this an official Microsoft response to the open source model and
> Linux in particular?
>
> A: No. These documents do not represent an official Microsoft position
> or road map. They are technical analyses written by a staff engineer
> that represent the thoughts of one individual at one point in time.
> They were intended to encourage an informed internal discussion of
> issues by marketing and engineering middle managers.
>
> Q: Who is Vinod Valloppillil and what is his role at Microsoft?
>
> A: Vinod is a staff engineer who, from time to time, is chartered with
> the responsibility of monitoring and analyzing market conditions and
> competitive offerings. His analyses are intended to spur internal
> discussion about industry trends and market dynamics. He is not an
> official company spokesperson.
>
> Q: How did these documents get leaked to the press?
>
> A: At this point we cannot confirm how the documents were distributed
> outside the company or who is responsible for the action.
>
> Q: Does Microsoft consider Linux a competitor?
>
> A: Yes. Linux is a competitor on the client and the server. My
> analysis is that Linux is a material competitor in the
> lower-performance end of the general purpose server industry and the
> small to medium-sized ISP industry. It is important to recognize that
> Linux, beyond competing with Microsoft, is also, and perhaps even more
> frequently, an alternative or competitor to other versions of UNIX.
>
> The operating system industry is characterized today by vigorous
> competition. This competition, of which Linux is only a part, exists
> at the technology level as well as in terms of business models,
> applications, channels and alliances.
>
> Q: The first document talked about extending standard protocols as a
> way to "deny OSS projects entry into the market." What does this mean?
>
> A: To better serve customers, Microsoft needs to innovate above
> standard protocols. By innovating above the base protocol, we are able
> to deliver advanced functionality to users. An example of this is
> adding transactional support for DTC over HTTP. This would be a
> value-add and would in no way break the standard or undermine the
> concept of standards, of which Microsoft is a significant supporter.
> Yet it would allow us to solve a class of problems in value chain
> integration for our Web-based customers that are not solved by any
> public standard today. Microsoft recognizes that customers are not
> served by implementations that are different without adding value; we
> therefore support standards as the foundation on which further
> innovation can be based.
> _________________________________________________________________
>
> Last Updated: Friday, November 06, 1998
> (c) 1998 Microsoft Corporation. All rights reserved. Terms of Use.
>
>
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