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Internet Market Close Report for 1998.01.27

ISDEX & Market Moves Snapshot

  19-Dec-97 % change point change
ISDEX 93.10 0.83% 0.77
NASDAQ 1,524.74 0.10% 1.55
DJIA 7,756.29 -1.15% -90.21

  • Microsoft (NASDAQ:MSFT) must make a case for why its Explorer browser being bundled with its operating system is not a violation of antitrust. Reuters reports today that a federal judge was shown that Explorer could be uninstalled in 90 seconds and Windows 95 functioned fine without it, contrary to what Microsoft apparently had said.

    In our view Microsoft's case is that the operating system itself is a browser to applications and functions. A guide engine. The Internet is therefore a natural extension, evolution, of this.

    Of course forcing OEMs to bundle Explorer and make it a condition of getting Windows 95 is another story entirely. We've seen a string of applications over the years being absorbed into the OS, faxing, file management, "Windows," etc. Microsoft's whole strategy, it seems, all along has been to leverage its installed base into the latest hot new realm.

    Let someone else pioneer and break ground while it comes along later and absorbs this into the OS. A better approach may be to "Internetize" its Office suite, make every application a "browser." Forget the OS as browser war. People use applications up front, not operating systems. Internet functionality in applications may be a far bigger threat than a standalone browser.



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