Interoperability: Is Microsoft All Talk?

Joe Wilcox Microsoft sure has been talking lots about interoperability, but is it walk, walk, walking?

Earlier today, the European Union's Competition Commission rapped Microsoft for delays disclosing protocol information. The newest statement, and one of many, contrasts with Microsoft recent announcements about interoperability.

About two weeks ago, Microsoft engaged Novell in an interoperability deal about SuSe Linux. Yesterday, the software giant announced formation of the Interoperability Vendor Alliance (IVA). Both announcements are relevant to Europe. Microsoft made the IVA announcement there and SuSe was a European company before its acquisition by Novell almost three years ago.

While Microsoft talks about interoperability, the Competition Competition wants more action. In a statement issued today, the regulatory body indicated that it had "not received the complete documentation regarding all relevant protocols" as required by the March 2004 adverse antitrust ruling. The EU had fined Microsoft $613 million, in part, for failing to properly disclose interoperability information to third parties. The EU decision found that Microsoft had used its dominance in desktop operating systems to gain unfair advantage in the server software market.

Today's statement lays out a pattern of non-compliance: "The Commission recalls that Microsoft was ordered by the March 2004 decision to supply the relevant complete and accurate interface documentation within four months of the decision." Microsoft "committed to and missed" numerous deadlines for completing the information. In July, the EU levied a second fine, $357 million, against Microsoft.

This morning, a Microsoft spokesman said company is "committed to full compliance." He emphasized that "Microsoft has committed a team of 300 people to meeting the Commission's standard for the technical documentation."

Delays favor Microsoft. The company's financial filings show that its server software is selling well, with the Server and Tools division posting more than 15 quarters of double-digit growth. The longer Microsoft withholds information, the more competitive advantage it could gain. In Europe, some Web hosters are switching to Windows from Unix or Linux.

"Microsoft has learned that delaying and paying fines is the way to go. It's much cheaper than doing what the EU asked [Microsoft] to do," said Bob Lande, an antitrust professor with the University of Baltimore School of Law.

Microsoft has a different view. "We have responded quickly and completely to all requests and queries on the technical documentation since the July deadline and have made very significant progress," said the company spokesperson.

There are two views on Microsoft's interoperability outreach, particularly their European significance: That Microsoft is sincerely working to improve interoperability, or that the company seeks to win favor during the Competition Commission's evaluation process. EU regulators will take input from potential licensees as part of the process of evaluating whether or not Microsoft has adequately disclosed protocol information. Microsoft is supposed to deliver this information by November 23, Thanksgiving Day in the U.S.

Lande believes the second view. "Microsoft isn't turning a new leaf," he said.

Access to the interoperability information is as vital to business customers and channel partners as it is to competitors. However, definitions remain unclear.

About a year ago, I spoke with a Microsoft product manager about new interoperability efforts. Midway through the conversation, I realized that we might not use the same definitions of interoperability. I asked: "When you talk of interoperability, do mean Windows XP with older Windows versions or Windows and other operating systems?" After a startled pause, he answered, "Windows with Windows."

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