Novell vs. Microsoft: Here We Go Again
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Let me start this column by stating my biases: I believe the federal courts were right in ruling that Microsoft abused its monopoly power in PC operating systems. That said, I am very skeptical that Novell has any chance of proving Microsoft used similar tactics to carve out a monopolist's share of the desktop-office-suite market.
And I'm not the only one who thinks Novell has faces some pretty insurmountable hurdles in its quest to show that Microsoft cut off the air supply of WordPerfect and Quattro Pro (products that Novell sold to Corel eight years ago, mind you) via unfair tactics, such as pressuring PC makers against preloading the Novell alternatives to Microsoft Office. "Novell's market share eroded more from poor marketing than having an inferior product," said James Powell, editor of The Office Letter, a weekly newsletter all about Microsoft Office. And Microsoft's "ability to pre-load the (Office) software on systems is also a red herring that really only helps in the consumer market, but the profits from such deals are pretty thin." Sure, Microsoft leveraged its position as the supplier of both the desktop operating system and the desktop suite, Powell acknowledged.
But the new Novell antitrust suit is "one of those 'too little, too late' lawsuits, with little to gain for Novell except money, of course," Powell continued. And the office-suite market "is really down to one player, with a few product (WordPerfect, OpenOffice, and others) on the fringes," he added. Former Softie Joel Spolsky (of "Joel on Software") fame who is more of a Microsoft critic than cheerleader also attributed Microsoft's success in the desktop suite market to Novell's marketing and development problems at least as much as Microsoft's strong-arm tactics.
"WordPerfect was written in the low level Assembler programming language, which meant it took ten times as much work to implement a simple feature than it took in Microsoft Word, which was written in the then state-of-the-art C programming language," recalled Spolsky, a former member of the Excel team at Microsoft. " It didn't help that the culture at WordPerfect was very relaxed and genial: Utah family men who were out the door every day at 5:00 sharp. They had no hope of keeping up with the hoards of aggressive twenty-somethings at Microsoft burning the midnight oil and using the latest tools. Microsoft Word was better and was available sooner, so it's not fair to attribute all of WordPerfect's problems to Microsoft's anti-competitive practices." To me, the latest Novell suit sounds all too similar to the Caldera vs. Microsoft antitrust suit over DR-DOS. In that case which ended in Microsoft paying Caldera hundreds of millions of dollars, according to sources, back in 2000 Caldera claimed Microsoft unfairly used its leverage with OEMs to kill off the DR-DOS alternative to MS-DOS and Windows.
I always thought Caldera had a strong case. But even if Caldera had won, what would have changed? As is true with WordPerfect, the market has moved on.
Novell vs. Microsoft is no David vs. Goliath battle, said Susan van Keulen, a partner with the San Jose, Calif., law firm of Thelen Reid & Priest LLP. "WordPerfect was a real player" a decade ago, van Keulen said. But now? Not much of a blip on the desktop-suite radar screen. Does all this mean Microsoft should be allowed to run amok and use its operating systems and tools leverage unfairly? Of course not. But if I were Novell, I'd be looking ahead and be spending my time and energy trying to cut off Microsoft's Office oxygen with Linux Desktop 9 than by looking back at a war the company lost already. What's your take? Does Novell have a prayer in winning its WordPerfect suit? And if it does, what do you expect will change, market-wise? Write me at mswatch@ziffdavis.com and |


Comments (2)
I followed closely and wrote about these developments at the time and there's no question that Word Perfect and Lotus both took Windows too casually. There was serious controversy at the time as to whether word processors should be GUI programs, for performance reasons, and Word Perfect was hesitant in their adoption of all GUIs. (Lotus seemed to develop for everything but Windows. Borland made winapps, but made them slow and fat.) And when Word Perfect came around to making GUI versions, they did a horrible job all around. Remember Word Perfect for OS/2, the GUI version? Possibly the worst program ever written. There were visible pauses between keystrokes. You could easily type faster than the program could keep up. They just didn't know how to write such a program, and hidden information from Microsoft had nothing to do with it.
Posted by larryseltzer | November 13, 2004 7:52 AM
Novell/WordPerfect killed itself. I would consider myself one of the now defunct WordPerfect experts. I could make the DOS version sing. When Win 3.0 hit the streets, I began correspondence with WordPerfect for a Windows version. After 5 phone calls and 3 letters, those morons wouldn't do a thing. Then one day I got a $99 offer for Word 2.0 and I haven't looked back.
I agree with Mary Jo. Go forward Novell and do some wonderful things with a Linux office suite.
Posted by Dewayne Johnson | November 18, 2004 10:28 AM