CCIA: Microsoft Not Changing Course with New Desktop OS, Only Delaying Assault on Enterprise Market

April 8, 1999

Washington, DC, April 8, 1999 – Computer and Communications Industry Association President Edward J. Black is warning consumers and regulators that Microsoft’s announcement of a new desktop version of Windows does not indicate a change in Microsoft’s plan to leverage its desktop monopoly into an enterprise market monopoly. And, he said, that means it is as important as ever that any remedy in the current Microsoft trial effectively addresses the growing Microsoft monopoly in the enterprise market.

“The Microsoft plan to converge the desktop and enterprise markets to force desktop users to Windows 2000 (formerly NT 5.0) is still in place,” said Black.  “This strategy is evident in Microsoft’s continued requirement that Windows certified applications must run on both Windows 98 and Windows NT.”

Black suggested that the new version of Windows is simply an attempt to improve Microsoft’s financial bottom line.  “Microsoft has been furiously trying to develop Windows 2000 (NT 5.0).  One can conclude that Microsoft is facing a revenue hole due to constant delays in getting that product out the door.  This new version of Windows is designed to remedy a financial concern,” said Black.

“Microsoft continues to market and promote Windows NT with the same questionable practices that allowed it to build a monopoly in the desktop market.  It is critically important that the reality of this marketplace is reflected in the remedies chosen to confront Microsoft’s illegal behavior. Microsoft continues to protect its existing monopoly and to expand that monopoly to the enterprise market.”


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