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Netscape and Microsoft butt heads in Internet battle
August 26, 1996
Web posted at: 11:30 p.m. EDTFrom Correspondent Don Knapp
SAN FRANCISCO (CNN) -- There's a battle going on that may well affect all of us who use the Internet, and even those of us who are yet to use it.
For Internet users, all the ways we use the Internet are at stake -- education, information, and shopping.
At stake for Microsoft and Netscape: The potential for billions of dollars in Internet markets that have only begun to open.
The two computer monoliths bared their fists Monday at dueling press conferences, each announcing new plans for the Internet and explaining why the competing company is an unfair competitor.
This is just the beginning of a pitched battle for control of the information superhighway.
"The software company that wins that battle will make lots of money, and can very well become a much bigger company than Microsoft itself," said Tony Perkins of the Red Herring Magazine.
Microsoft's weapon is innocuous enough, a simple web browser. Right now, Netscape's Navigator dominates the software that lets computer users roam the World Wide Web.
Microsoft wants its web browser, Internet Explorer, to take market dominance over the Netscape product much as its operating systems, including Windows and Windows 95, dominate computer systems in general. Microsoft founder Bill Gates says he's aiming for 50 percent of the market by 1997.
"The advantage that Microsoft has is they have a lot of cash in the bank, and a leader in Bill Gates who is very focused on winning this marketplace." Perkins said. "Netscape's advantage is they were founded with the intention of optimizing all systems they create for the Internet."
Microsoft's strategy, a practical one, is to give away its Internet Explorer browser for free. If you purchase a new computer running Windows the software will most likely already be there, installed at the factory. Otherwise, Microsoft will send you a copy, free for the asking.
"I've had a chief executive of a very close company that they work with, tell me that they've said, 'We're going to offer free products everywhere that we can to put Netscape out of business.' Microsoft has said that to a high level CEO at a company they do business with," said Netscape Communications Corp. chairman James H. Clark.
Netscape complained to the Department of Justice, which won't say whether or not it is investigating Netscape's claims. But Microsoft denies the allegations, and counter charges that Netscape only wants government help to protect it from Microsoft competition.
Meanwhile, in San Francisco Monday, Netscape launched Navio, a new venture it hopes will become the dominant operating system on new appliances using the Internet, including video game boxes, pagers, cellular phones, televisions, and cable boxes.
"We should be able to provide, really, the industry's only ubiquitous platform for developing the type of content and applications you see on the Internet today," said Marc Andreessen, vice president of technology for Netscape.
As Netscape sees the future, everything will have some connection to the Internet. Microsoft, which initially underestimated how popular the communication medium would become, is now ready to go full speed ahead to catch up with the competition.
Related stories:
- Computer Connection Newsreel: Microsoft works to fix browser's glitch - August 17, 1996
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