Tom Regan
Microsoft: There they go again
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When Microsoft decided to name its new operating system Windows XP (it had been originally code named 'Whistler'), no doubt they hoped it would stand for 'eXtra Profits.' Unfortunately, if the events of the past few weeks are any indication, XP might turn out to mean 'eXtra Problematic.'
Microsoft has made no secret of its hopes for Windows XP. The company has wanted a single operating system for a long time (currently Microsoft offers Windows 98 and Windows 2000, which are successors to Windows 95 and Windows NT), and its sees the wide adoption of XP as part of its .Net master plan. (.Net is Microsoft's ambitious scheme to rule the Internet in much the same way it has ruled the desktop for the past 10 years.)
But life is what happens to you while you're making plans, as the late John Lennon wrote. And now, as Microsoft approaches its planned XP launch date of October 25, 2001, siginficant problems have arisen. There is even an outside chance that the Justice Department may try to prevent the launch of XP.
Here are a few of the problems that Microsoft faces:
1) Really bad planning
SmartTags was the XP feature that would have allowed Microsoft to turn certain words into links (or perhaps sell them), which would have appeared on any website, regardless of how the site felt about the practice. The public outcry was enormous and Microsoft wisely dropped the feature. At least for now.
But the SmartTags fiasco is only the tip of the iceberg. Microsoft had originally wanted to limit the number of icons on the XP desktop, This was, it said, part of a design that sought a simpler interface. But again, the idea that Microsoft could determine what icons were visible on what is arguably the most valuable real estate in history didn't sit well with many people. Last week Microsoft quietly announced that it would now allow people to put whatever icons they wanted on the desktop.
Meanwhile, there are concerns that the new XP technology will make it much easier for hackers to use Windows machines to launch denial-of-service attacks on unsuspecting sites.
2) Really bad customer service
Microsoft launched the XP Preview Program on July 2. About 100,000 users were willing to pay either $10 (for direct download) or $20 (for a CD) to kick XP's tires. But the preview was almost immediately in trouble. Conxion, the company distributing the software, took a very long time to distribute via e-mail the information people need to operate XP. Or it sent them the wrong username and password. Meanwhile, thanks to a security glitch, many people downloaded the program for free.
Well, it's just a preview version, right? True, but it foreshadows another potential crisis.
Windows XP will require an activation code to make it work. It's an anti-piracy measure but it reduces the number of times the system can be installed to, well, once. Many people will need to call Microsoft to get the activation code. Based on the experience above, it's could be chaotic.
Meanwhile, there is also the question of a one-time only installation. What happens if the software doesn't work properly and you need to reinstall it? (I've had to reinstall my Windows 98 software twice in the past two years.) Not an idea designed to warm the cockles of a consumer's wallet.
3) Really bad behavior
Misreading the appeals court's decision, the media focused on how this court panned Judge Jackson's proposed penalties. But the reality is that the appeals court really hammered Microsoft. It upheld eight significant findings of anti-trust violations.
Microsoft tried to throw the Justice Department and the court a bone when it said it would loosen its licensing restrictions, allowing computer makers to remove Internet Explorer icons from the XP system. But most observers saw this as meaningless, since Microsoft has already blugeoned its main competition in the browser market, Netscape, into submission.
Then the Justice Department asked the appeals court to immediately sent the case back to a lower court to decide if the company should be broken up. But there's another reason why the Justice folks want a quick decision -- if Microsoft isn't forced to make signficant changes to XP, it will use the new operating system to undermine rivals in areas like media players (such as Real Networks) the same way it underminded Netscape. So look for the Justice Department to ask for an injunction to precent the launch of XP if changes aren't made.
Meanwhile, if Windows XP is delayed any longer than October, there is the chance it will bump into the launch of Microsoft's gaming system, the XBox. And consumers only have so much money to spend these days.
All in all, the launch of Windows XP promises to be 'eXtremely Provocative.'