FREE ESSAY ON MIS

MIS

MIS 3113 Sec
February 26, 99
Let's face it, in today's world we are using computers more and more. The growth of
accessibility to the Internet has given us a brand new definition to connectivity, thus
exponentially widening the wealth of information at our fingertips. Those of us who are
computer and Internet users have experienced this rapid growth, yet many users do not
understand some the trade-offs that have been made to bring this level of user-friendly
technology to desk-tops all over the world. It's just so easy. Buy it, bring it home,
plug it in, insert a disk, and your on the Internet. From the users perspective this is
an incredible leap in the right direction. However, from a business point of view we must
be very cautious. Due to the numbers of business who are involved in the production of
computers and the fact that Microsoft has been not only a corner stone in development,
but a household name since the very beginning, creates a potentially hazardous business
environment. This has been the topic for many heated debates.
The main question Microsoft has been confronted with is weather or not they have created
a monopoly or merely experienced a large market share and a competitive advantage
stemming from their dedication to provide more efficient systems. Historically, the
United States has set a precedent to penalize companies who demonstrated monopolistic
actions. In the Sherman and Clayton Anti-Trust Acts, the United States officially made
monopolies against the law. However, companies like AT&T have endured these changes, thus
tearing down their walls of domination, allowing room for competition, and ensuring
economic growth across the board.
The reason why Microsoft is currently under investigation is a result of some of the
following ideas and events:
? Users have extremely limited operating systems that are compatible with existing
hardware and the only operating system included with the purchase of a new computer is
Windows.
? Integration of the Microsoft Internet Explorer with the already powerful Microsoft
Windows operating system is viewed as a monopoly using their already supreme power to
seal off competition in yet another area where a market already exists. (and)
? Tactics Microsoft has used in the development of other applications such as web
development and design (i.e. the creation of FrontPage) have created compatibility issues
that require extensions that can only be provided by Microsoft. 
These are all examples of how Microsoft has jockeyed for position in this new,
competitive, and obviously undefined computer business arena, eliminating competition
while claiming to be the ultimate saint.
To prove that Microsoft is indeed a monopolistic force in the operating systems market
David Chun, a student at UCLA, conducted a survey asking several different Original
Equipment Manufactures (OEMs) these very simple questions.
1. Do you offer any other operating systems?
2. Can I buy computers, any models, without buying Windows?
3. If not, why?
4. Can I return Windows and get a refund?
After Mr. Chun contacted several of these OEMs, Sony, DELL, NEC, Gateway, and IBM (just
to name a few), he found the following information:
OEM QSTN 1 QSTN 2 QSTN 3 QSTN 4
SONY No No We are under contract with Microsoft No
DELL No No We are under contract with Microsoft No
NEC No No We do not have contracts with other O/S manufs. No
IBM No OS2 $99
But comes
with Windows That's just the way it is. No
As you can see from the illustration, not one of these major OEMs offers its customers
any options. It seems as though Microsoft has everyone's hands tied and all bases fully
covered concerning the O/S market. Due to the fact that Microsoft won't even grant OEMs
some sort of refund policy to offer wayward customers who aren't interested in buying
their O/S is just plain selfish, pushing other potential O/Ss deeper into the corner they
are already trying to exist in. You have to begin to wonder what this giant is really all
about.
Everyone knows that for a user to obtain access through the Internet they need a browser
and an Internet Service Provider (ISP). A web browser is a software application that
translates hypertext markup language (HTML), allowing us to surf the web. Recently
Microsoft has decided to bundle their version of a browser, Microsoft Internet Explorer,
with their operating system, Windows. Microsoft views this as merely adding an ice
dispenser to its already existing refrigerator. However, a company like Netscape who has
been a leader in the market for years thinks much differently. Indeed, it may seem as
simple as adding an ice dispenser (a simple upgrade), yet is there really an independent
market that is going around trying to install ice dispensers? I say no. The browser
market does in fact exist outside the realm of an operating system and Microsoft hinders
these other competitors by using its influence in another market with a completely
different product to gain a definite edge over all other competition. In a case between
Telex and International Business Machines, the court found, ...a monopoly may use
practices that any company, regardless of size, could legally employ..., however, ...
they cannot...use market power in such a way as to prevent competition. Whether Microsoft
has actually committed this act is yet to be proven, but I personally think the ground
for this argument could be established.
One thing is for sure. The computer industry is unlike any other in existence today. It
remains the fastest changing industry in the world and has the government running in
circle about how to create and enforce legislation on matter such as the Microsoft
Anti-Trust issue. Until the government successfully defines how far a monopoly can
develop itself and how it uses existing powers to leverage itself in other markets the
computer industry will sadly remain a Wonderland where anything is possible if you're the
one with all the power. 
Works Cited
David Chun. Required to Buy Microsoft Windows. July 08, 1998.
http://www.essential.org/antitrust/ms/jun3survey.html
Bruce Holcomb. Recent Decision. The George Washington Law Review. May 1980.
Dan Check. The Case Against Microsoft. http://www.compuserve.com/homepages/spazz.htm
Stanley Sporkin. Memorandum Opinion http://research.bryant.edu/~mbougon/BU-400