Bonum Certa Men Certa

Microsoft on “Maintaining Gap vs Linux” Using “Patents“, “Children’s Software“

Sign against dumping



THIS POST is the latest part of a series that has so far included:



Today we turn our attention to Comes vs Microsoft exhibit px07046 (2001) [PDF].

In page 29, the section "Maintaining Gap vs. Linux" appears. This part of the presentation talks about "children's software" and patents in file formats as an anti-GNU/Linux weapon.

The presentation and accompanying notes make it clear that GNU/Linux is on Microsoft's mind, e.g.:






- Linux offers a modular pool of commodity system and application OP that eases competitive entry into targeted segments     - "Good enough" functionality, low cost and compatibility for key applications     and hardware profiles threaten corporate/educational/international desktops     - Evolutionary development ecosystem that continues to Improve the basics





Here is what Microsoft wants:






    - Community development a la Linux     - Content protection/DRM

[...]

    - Create a business model for shareware





We often complain about CNET, so here is something to bear in mind:



6. Download.Com/CNET: RogersW to explore possible partnership with CNET around download.com.

[...]

* On a business model for shareware, the expectation is that it would raise quality, intent other people who are too small to set up the infrastructure that big sites already do today. Someone had spent 40 minutes talking with CNET about download.corn, and suggested we might want to partner with them (AI6): that 75-80% of their traffic is from download.corn, and that the head of that might be Halsey Minor (sp?) who is a friend of REmerson.


Regarding "Business Situation," say the notes:

* Linux was noted as a big factor; a small share could grow quickly. While we have not seen material Linux clients, we are losing in academic areas, and professors using Linux are entrenched.


In a matter of days (or weeks) we will show how Microsoft manipulates Intel. From this exhibit we also extracted:

* Our 64 bit work with AMD has positive competitive effects, and the incompatibility of 64 bit platforms between AMD & Intel is significant. We should be patenting appropriately, this creates more influence with Intel than in the past. Our relationship with Intel is positive relative to the past 4 years. * Two observations on Intel’s go to market are. 1) because of the marketing power behind Intel Inside, there is little margin for retailers to do much beyond this because the message would get lost; 2) we want them to favor Windows over Linux and they are imprecise there. Intel uses Intel Inside money to compete with AMD and lets OEMs promote scenarios; Intel has huge financial and legal obligations here It was noted that they are much less Linux focused than 1 year ago, and 2 reasons were given: 1) they were less positively disposed towards us than now; 2) they were playing other hands; there were legal and personality reasons why it was hard to play their hand with us. It was also added that now IBM has them scared and that Linux is double-edged for them relative to us; it could pull us into a closer relationship, or could alienate us.


More fear of GNU/Linux is expressed later:

* Linux was listed first not because of where it is now, but because of where it is going with their engineering inertia. RedmondLinux is a look-and-feel clone with installer and it is good; if we stand still they will catch us.


A lot of the text below needed to be extracted by hand due to the poor quality of the scans. Some of the less important slides we did not transcribe, but they are legible in the PDF.




Appendix: Comes vs. Microsoft - Exhibit px07046 (2001), as text








From: Dan Neault Sent: Friday, December 21, 2001 2:48 PM To: Jim Allchin; Orlando Ayala; Steve Ballmer; Rick Belluzzo; Bill Gates; Bob Muglia; Jeff Raikes; Anoop Gupta (RESEARCH); Craig Mundie; David Vaskevitch: Deborah Willingham Cc: Richard Fade; Brian Valentine; Chris Jones (WINDOWS); Rogers Weed; Bill Benack Subject: Slides and Notes from 12/18 SLT meeting on PC Client Strategy. Attachments: PC Client 12.18.01 Final.ppt; PC Client SLT Corp. Pri. Notes.doc

Highly Confidential -Please do not forward.

Attached are the slides and notes (including action items) from the 12/18 PC Client Strategy and Business Growth SLT discussion. From this, we will be updaling our POR to reflect feedback on the new ideas that were discussed. I would appreciate your sending me any feedback you may have for us to incorporate into our new plans.

Please let me know if you have any questions.

Thanks. -Dan

3/23/2005

MS-CC-RN 000001036785 HIGHLY CONFIDRNTIAL




PC Client Strategy and Business Growth



SLT Discussion



12/18/2001

MS-CC-RN 000001036786 HIGHLY CONFIDENTIAL




Agenda





MS-CC-RN 000001036787 HIGHLY CONFIDENTIAL




Windows Dream



-Even more relevant to people’s everyday lives at work and at home

-Exciting and profitable place for partners to invest and innovate

-Much closer relationship with our customers

MS-CC-RN 000001036788 HIGHLY CONFIDENTIAL




Windows Business Strategy



1. Focus on the key business levers 2. Scenario innovation (new & existing) 3. Create more value for others in ecosystem 4. Wireless and media are fundamental shifts 5. Better together with distributed device world 6. Tighter customer feedback loop 7. Keep moving the value chain up

MS-CC-RN 000001036789 HIGHLY CONFIDENTIAL




See figure in PDF

MS-CC-RN 000001036790 HIGHLY CONFIDENTIAL




Business Situation - Industry






- OEM business weak

        - Monetization through services, peripherals, servers,         distribution, support         - Minimal R&D investment on PCs         - Industry driven to consolidation (OEMs & suppliers)

- Still working with Intel to focus on growing PCs vs. taking share or $         - Vertically integrating (pulling value from IHVs/OEMs)         - Fixated on competing with AMD - Little VC investment in PC/Windows apps - ISV/lHV interest focus on emerging categories/areas



MS-CC-RN 000001036791 HIGHLY CONFIDENTIAL




Technical Situation






* PCs are arrested In the "good enough" state     - Internet (browsing and emall) was the last big boom for PC replacement     - Windows XP capitalizes on: reliability and photo/music scenarios     - Little HW Innovation due to shrinking margins and low R&D Investments In OEM/IHVs     - Few breakthrough software applications and none targeting latest OS features (e.g., Napster)     - Limited synergy between software and hardware advances (e.g., 3D graphics, wireless)     Upgrade, management, and deployment complexly limit adoption of new OS and applications     Innovation moved to the web and to "mobile" devices

* Longhorn Is focused on re-Invigorating the platform in key areas     - Rich storage and presentation     - Communication and community scenarios, better mobility scenarios     - New rendering engine that takes advantage of the 3D graphics     - Further" improvements to automated feedback cycle (e.g., Watson and Windows Update)

* Still need breakthrough new scenarios, applications, form-factors and HW designs     - New applications for communication, creativily, control, info processing, and entertainment.     - Communication and community enhance each application with network effects     - Pervasive mobility and new form factors for new scenarios and re-vitalize existing scenarios     - UI changes allow higher level tasks to be done in same amount of time (DI3->GUI->NL]

* Major technological shifts are under way looking forward.     - Pervasive connectivity, dist. apps and disaggregation change definition or the PC & the OS     - Explosion of information, interruptions and required user actions demand new UI paradigms     and personal agents     - Digital media becomes key part of digital data/content and places new demands on systems     - Self-management capabilities required given complexity explosion



MS-CC-RN 000001036792 HIGHLY CONFIDENTIAL




Competitive Situation






* Linux offers a modular pool of commodity system and application OP that eases competitive entry into targeted segments     - "Good enough" functionality, low cost and compatibility for key applications     and hardware profiles threaten corporate/educational/international desktops     - Evolutionary development ecosystem that continues to Improve the basics

* AOL establishing a subscription relationship with every consumer based around a complete experience for communication, entertainment and information access

* Apple marketing end-to-end, cutting edge scenarios that combine hardware, software and services into an easy/elegant solution     - Vertically-integrated hardware/sofwtare stack allows innovation to occur in     lock-stop; simplifies the testing matrix and the system complexity     - OS X does an admirable job separating the slow-changing commodity areas     (off-loading its development and maintenance to the community) and the     innovative layer (UI, applications, integrations, connectivity) * Distributed device platform     - Sony weaving a web of connected devices each focusing on specific application or experience and banking on Internet or IP-connected media for interoperation (e.g., memorystick)     - Handhelds (Palm, PocketPC, phones) offering commoditized software in new     mobile scenarios at fraction of royalty (from none to small)     Java is being pushed as a distributed platform (cell phones, home     automation, server applications, client applications, mobility, embedded)



MS-CC-RN 000001036793 HIGHLY CONFIDENTIAL




PC Growth



See slide in PDF

MS-CC-RN 000001036794 HIGHLY CONFIDENTIAL




PC Growth - Ideas

See slide in PDF

MS-CC-RN 000001036795 HIGHLY CONFIDENTIAL




Ecosystem



See slide in PDF

MS-CC-RN 000001036796 HIGHLY CONFIDENTIAL




Pro Mix



See slide in PDF

MS-CC-RN 000001036797 HIGHLY CONFIDENTIAL




Installed Base



See slide in PDF

MS-CC-RN 000001036798 HIGHLY CONFIDENTIAL




Harnessing Non-PC Devices



See slide in PDF

MS-CC-RN 000001036799 HIGHLY CONFIDENTIAL




Maintaining Gap vs. Linux






1. Keep network effect with Applications     - Migrate applications to .NET framework          -BUT keep framework proprietary to Windows          -Patents required to implement clone     - Solve application/OS deployment problem even for Win32     - Projecting Windows API experience into new form factors and usage modes around home

2. Keep network effect with Hardware     - Keep growing range of peripherals supported (better together with other devices)     - Drive key hardware initiatives (Trusted Windows, fast boot, etc.) with OEMs

3, Innovate

    - Storage         - Light-weight db, consistent programming model across file system and database         - Focus on defining key metadata schemas and using them in the shell         - Drive applications to use the new rich store     - Shall         - Visual presentation driven by presentation platform advances         - Beyond files and documents - promote users and groups to fist class objects         - Honing focus on scenarios - photos, music, video, gaming, communications     - Presentation reform         - Tighter Further using the error reporting loop to rapidly solve customer issues         - Automatic updates, even fewer reboots     - Natural language         - Natural language for local (aided by the rich store) and Internet content     - Communication         - P2P platform for ad-hoc applications         - Focus on community and group access all of the key scenarios



MS-CC-RN 000001036800 HIGHLY CONFIDENTIAL




Broader Issues



* Missing Talent     - Presentation architect

    - Next gen OS architect

    - Client programming model architect

* Potential Acquisitions

    - Anti-virus

* New Incubations

    - "New" OS

    - Broader Managed PC test

* Current Incubations

    - eHome

    - Indigo

    - Mira

    - Presentation reform/Avalon

    - Tablet

MS-CC-RN 000001036801 HIGHLY CONFIDENTIAL




Appendix



MS-CC-RN 000001036802 HIGHLY CONFIDENTIAL




Strategy Axioms



See slide in PDF

MS-CC-RN 000001036803 HIGHLY CONFIDENTIAL

Anti-Piracy



See slide in PDF

MS-CC-RN 000001036804 HIGHLY CONFIDENTIAL




MS-CC-RN 000001036805 HIGHLY CONFIDENTIAL




Top New Actions



1. More scenario investment required     - digital memory, wireless, community 2. Get relationships with wireless carriers 3. Incent IHVs/ISVs for good experience on upgrades 4. IP pooling with OEM to increase R&D

5. Reduce friction for rich client applications     - business model for shareware     - marketing program for corp IT 6. Greater network effect around PC "devices"

MS-CC-RN 000001036806 HIGHLY CONFIDENTIAL




PC Client Strategy and Business Growth SLT Discussion 12/18/2001

SLT Attendees: BillG; SteveB; RickBe, JimAli; JeffR; OrlandoA; DavidV; BobMu; CraigMu; DWiiling; Anoop.

Presenting: JimAll, Presentation Attendees: RichardF; BfianV; ChrisJo; RogersW; BillBen; DNeault

Action Items: Owners proposed where not resolved in meeting. Each AI is tagged in notes as (AI#).

1. Papers on solid state storage for BiIlG: RichardF to have sent out. 2. Managed PC. SteveB to meet with JeffR; BillG, JimAll to look at managed PC business and possibility of acquiring a service company. 3. Office.NET on Longhorn only. JeffR to drive to ground any open issues. 4. Natural Language: JimAll to get time with Kfl to resolve what is possible for Longhorn. 5. Hardware design and SI work by Msft. hmAll to drive follow-up. 6. Download.Com/CNET: RogersW to explore possible partnership with CNET around download.com. 7. Dell Pro mail ChrisJo to draft mail for StevcB to send to Dell regarding marketing around Pro vs. Home (n.b. actual mix is high). 8. Windows business report: ChrisJo to develop report by the time of the BPR. 9. Mobile/tablet/laptop messaging: RogersW to drive re: mobility as more attractive/valuable, tablet is part of Mobile. 10. Windows Pro-only Office.NET features. JimAll to follow up with JeffR. 11. Games for Longhorn Pro. ChrisJo to make games a design point for Longhorn Pro 12. State Migration. JimAll investigate assigning additional technical people. 13. Retail Trial Period. ChrisJo to investigate Windows XP/futures of being able to trial, then cleanly revert to pre Windows XP state. 14. Software licensing mechanisms as platform service BrianV to drive analysis of what features we should make available to industry. 15. Terminal Services: JimAll to schedule two hours with BilIG to demo TS and discuss Mira/TS CALs. 16. Device Better Together: BillG to drive meeting around images, ink, peer-to-peer. 17. Zenith chip in PCs: BilIG to follow up with Rashid re. Zenith in PCs 18. SMS gateway: RogersW to follow up with PieterKo 19. XBox OSiXBox game support JimAll to initiate broader investigation 20. Presentation architect(s). ChrisJo to connect with Rashid and Kajiya for ideas. 21. OS architect(s). JimAlt to schedule meeting with DavidV, CraigMu, BIlIG, SteveB on thls. 22. Antl-Virus SteveB to talk with JlmAll 1 : 1. 23. Product Actavation & Antiplracy. RogersW to look at activation and sales data in response to SteveB's request 24. Longhorn features. RogersW to send SteveB 2-3 slides on all features in Longhorn. 25. Office crash reports. JeffR committed to send out Office crash reports. 26. MSN Synergy. JimAll committed to follow up on this

Notes below supplement shale materials, slide titles are underlined.

Opening This was the first of the Corporate Priorities meetings agreed to at the last SLT offsite. The template covers situations (Business, Technical, and Competitive) and then areas we can influence (covering Trends, Commttted POR, Ideas). The context is bigger picture; there will be more on details at MYPs.

Windows Dream

* Windows became more relevant with Windows XP & the new NT plafform, but it needs to be even more relevant. Windows is not as exciting or profitable a place for partners as it could be

MS-CC-RN 000001036807 HIGHLY CONFIDENTIAL




* Once we get a better relationship with customers they are more likely to buy more products and services from us

Windows Business Strategy * Key point is to focus on "levers" (known business influencers/considerations) and watching them carefully to avoid surprises. * There is some controversy over the ecosystem health; it was mentioned that we helped make the PC a standard & should be glad we did. * Wireless is more than 802.11, and includes WAN * On moving value chain up, Intel is far from messaging to scenarios and, they need to get people on that path. This is covered later.

Business Situation - Microsoft

* $9B is client only revenue, and for EA’s $50 is about the most we expect. * Some improvements are expected over the forecasts shown. * Linux was noted as a big factor; a small share could grow quickly. While we have not seen material Linux clients, we are losing in academic areas, and professors using Linux are entrenched.

Business Situation - Industry

* CPQ is considering cutting PC client R&D, and 0EMs are driving consolidation by treating all their suppliers as commodity vendors. * CPQ & HP consolidated their consumer and commercial divisions because of lack of a business model for differentiated client PCs, independent of any effects from Imel. Consolidation in graphics was noted, recognizing that Intel helped cause this. That this had hurt quality was challenged * Our 64 bit work with AMD has positive competitive effects, and the incompatibility of 64 bit platforms between AMD & Intel is significant. We should be patenting appropriately, this creates more influence with Intel than in the past. Our relationship with Intel is positive relative to the past 4 years. * Two observations on Intel’s go to market are. 1) because of the marketing power behind Intel Inside, there is little margin for retailers to do much beyond this because the message would get lost; 2) we want them to favor Windows over Linux and they are imprecise there. Intel uses Intel Inside money to compete with AMD and lets OEMs promote scenarios; Intel has huge financial and legal obligations here It was noted that they are much less Linux focused than 1 year ago, and 2 reasons were given: 1) they were less positively disposed towards us than now; 2) they were playing other hands; there were legal and personality reasons why it was hard to play their hand with us. It was also added that now IBM has them scared and that Linux is double-edged for them relative to us; it could pull us into a closer relationship, or could alienate us.

Technical Situation

* It was mcntioncd that software as a service is part of reinvigorating the platform to the extent it would reinvigorate the programming model, and that this is a multidimensional problem. * It was suggested it would be valuable to have a service that allowed people to roam and back up their data, as well for Office as for e g AutoCad, and that this would be popular for client applications * Casual code mailing around was raised as exciting for new classes of ISVs; this was reinforced for peer-to-peer usage, and it was noted this could be viral It was mentioned as a disappointment that for security reasons we are impeding shipping code around: the basis of the Von Neurnann machine.

Competitive Situation

MS-CC-RN 000001036808 HIGHLY CONFIDENTIAL




* Linux was listed first not because of where it is now, but because of where it is going with their engineering inertia. RedmondLinux is a look-and-feel clone with installer and it is good; if we stand still they will catch us. * AOL’s subscription business creates a relationship with customers in many dimensions * Apple’s IPod shows leadership in synergy (e.g. Playlists) and was a mussed oppommity. OS X was smart because they were able to separate the commodity Mach kernel for the benefits then differentiate and have value on top of this. This is what IBM is doing at a higher level (with Linux). * Because PocketPC’s are €¼ of the royalty; if we are not careful we can eat our own lunch. A key PC differentmtor is full size display devices, but we need to work on boot time.

PC Growth

Noteworthy Trends

* In the debate of new machine vs. IB, new machine royalty is still king. * On substitution effects, small screens are not a full replacement for a big screen; while Palm might grow up, ninny would choose a big screen that was lighter with a larger baaery. ALAN is also key. * PocketPC devices for calendars and contacts were mentioned as an acceptable device for situations such as a vacation. It was posed as the interesting question: why not take the PC even if taking a PDA, e.g. taking the bigger device too when doing an activity such as photography.

Plan of Record

* It was clarified that features such as creating a conference call, call routing, VM are considered as part of RTC in this context; these were collectively referred to as information agent features * Scenarios creating new demand are hard to get through to people that haven’t used them, such as the case of digital photography. IPod ads on TV were mentioned as awesome. It was observed that as a discriminator on camera devices themselves, our UI would be inferior to Apple’s. * It was questioned fif our broader ads are as effective, and noted they are for a broader "feeling" purpose. It was suggested we take a part of our message, a new scenario, and push it when we bring out a product. It was recalled that we used to effectively push scenarios in journals, and instead we went to expensive media. It was suggested that a shift to scenarios might hurt trickle down effects from current ads, and acknowledged these are effective to an extent. * Our scenarios should leave people blown away, and our online tours should be in effect our ads, but we don’t know how effective these are; that this is an example of how we should improve our feedback process. Someone mentioned that people they show digital photography to using a Digital Elf had no idea how easy it was. * It was observed how much more enthusiasm there is in Japan on PC innovation than in the US It was agreed that solid state storage would be an interesting area for Investment in Windows. The user beneftss mentioned were €½ the weight, size, and instant on, and that this is newer than nand/nor flash, but that there are some technology issues. Some papers will be sent out for BillG’s think week (AII) It was commented there will be technologies coming before MEMS that are better, and we don’t have a program to be ready for these before they come out, and that they will go to embedded applications. * On the subject of synchronizing new Windows releases to hardware advances, it was clarified that we would be marketing to thefdirst list (TW, hyperthreading, etc.) only in the biggest sense and input on improving the list was welcomed. The second list (Tablet, EHome, and Mira) was recognized as better WiFi, instant on, and microphone (PC as superior phone) and ambient noise were added. Wireless & broadband were noted to be in Longhorn. * On zero-install client apps it was said that with every release of Windows someone declares some victory, and clarified that this should not have happened for Windows XP It was affirmed that we have the kind of progress that is a marketable milestone, and that it will get better for .NET applications.

MS-CC-RN 000001036809 HIGHLY CONFIDENTIAL




* Our Managed PC trial was noted as promising, and a meeting will be called (AI2) for JeffR; SteveB; BillG; JimAll to look at this business, and the possibility of acquiring a service company. It was noted that we have done a trial m the past as well. * It was closed we would be looking for new ideas from research, in wireless, more on synch, and that we needed more and ideas should be sent to JimAll.

PC Growth - Ideas

* It was clarified that it is desirable to have Office.Net run only on Longhorn, but that file team believes it should run elsewhere with fewer features. The concern is that some doubt it will work well on earlier versions and don’t want a bad user experience. Jeff (AI3) will drive this to ground. * On Natural Language, JimAll will get time with JeffR (AI4); there may be more we can do for Longhorn, and it is unclear how to market the current ideas, and we might not yet be on the right path. * There was concern that carriers will resist pushing for a subsidy model for wireless PCs; that they want to get out of the subsidy mode, and they want a SIM card in the PC It was noted that it is important we get into file wireless space and that JawadK is all over GPRS & 3G networks, but that Outlook behavior is weak, and for browsers other people have accelerators and ours is not a fast. It was closed that we need to drive cell radios into PCs. * It was raised that we need to do something different in tools, and commented that for asynch, Indigo is much better. It was nosed that for GPRS latency is a problem, but that the next generation of Outlook does a much better job on disconnects. * On doing things in a more culture-specific way beyond IME, whatever we do, we should do in a well connected way,

Ecosystem

Noteworthy Trends * While partners are behind Windows if a new version of Windows will help them sell their newer products, they are not motivated to help in compatibility for already-sold peripherals.

Plan of Record * In the context of "connectivity everywhere", POR means people are assigned and that we are working on strategies. * For Better Together we should list devices we want to be better with. * The JPEG replacement work that we are doing, and getting everyone to embrace it, is big. Ideas * On the idea of OEM differentiation and creating narrow paterrt pools where "out" parties license from "in" OEMs (with solid state memory as an example), it was suggested instead Msft should drive. Microphone & camera arrays were suggested as counterpoint examples where OEMs should innovate. It was suggested that if we do this Japanese OEMs such as Sony were ones to work with, and that Sony is not a PC company in a core way, but that OEMs won’t ship PCs with this new, expensive hardware; because of the price points they would not take the inventory risk. This was countered that if Windows enables this they will, but that using Sony as an example, they try to get us to support their hardware (memory stick as an example) and we decline unless we originate the ideas. Patent cross licenses challenge this in that some companies are already licensed. * It was suggested we have a group that does design and system integration (and we patent) and then we suggest an OEM build machines using this, buying components under this design. JimAll satd that we should do this (AI5), but that pooling is different because OEMs would drive. * This approach of patent pooling was also doubted as being like previous efforts to keep LARs going that ultimately it wouldn’t work out. It was again suggested in Japan they might attempt this. It was observed that companies had to have volume and R&D, and two candidates were noted: 1 without the R&D and 1 that couldn’t find the talent, but that HP might be willing to do with outside components It was affirmed we needed to step up to the system integrator role, and was suggested it won’t come from traditional suppliers.

MS-CC-RN 000001036810 HIGHLY CONFIDENTIAL




* It was questioned why Dell does all the great things they do on laptops, and suggested that where OEMs are building machines with innovative software and IP, what we would do here would not help them It was asked why not just suggest to them to buy our designs.

* It was posited that if we had the applications that created the demand, the OEMs would step up and build the hardware required to support them. * The IP pooling idea in general was cotmtered using Tablet PC as an example, that we didn’t go to SGI to create a shield and include our patents’, it was reaffirmed we don’t share our patents It was noted that the essence of the pooling was to create economic incentive, and that we should just use money, and not patents * It was claimed that component vendors integrate, and system integrators innovate, and that we have not seen major innovation from OEMs for years It was suggested it is cheaper and better for us to prototype in software, and more cost effective for the world for us to then go to the component vendors. * It was noted OEMs are in charge more than Msft and that Taiwan is the place to put our efforts. When it was asked what happens if CPQ steps out of PCs, it was suggested that Intel would step i1% and that specifically if CPQ is jilted they may leave the PC business unless Intel sweetens the deal. It was again suggested that ideas/R&D should come from us; that we should design, patent, and write the needed software ourselves * When it was suggested we need a PC design group, 3 were noted; Tablet, SteveKan’s group, and CraigMu’s incubation (which is moving to Tablet). It was reminded that the technical pride in some companies is very high. * On catalog reference selling, effectively baking the catalog into the Windows experience (e.g. recommending partners, selling memory) it was said that if the context is logical, this is good * On a marketing program for corp. IT to use client apps, it was noted that the biggest group of developers is VB and 80% of them are writing client code, even if companies don’t think of themselves as writing client code. We agreed we need to reeducate on the benefits, e g. Siebel. * On a business model for shareware, the expectation is that it would raise quality, intent other people who are too small to set up the infrastructure that big sites already do today. Someone had spent 40 minutes talking with CNET about download.corn, and suggested we might want to partner with them (AI6): that 75-80% of their traffic is from download.corn, and that the head of that might be Halsey Minor (sp?) who is a friend of REmerson.

Pro Mix Noteworthy Trends *It was suggested Dell does not market Windows XP Pro as much as they should, even though they make $50 more in profit. This seemed surprising; that Dell would work hard for $50. It was claimed that at Dell everyone knows this, but does not always push Pro. ChrisJo was to draft mail for SteveB to send to Dell (AI7) on this; it was odd in that they make only $30 low end PC. [note: their current Pro mix is 60%+]

Plan of Record * It was pointed out that Pro is not a superset of Home because it doesn’t have Fast-User Switching if it is on a domain. It was recognized we ran out of time, and that few people have domains at home, and we will change this for Longhorn.

Ideas * We are not sure we know everything about the PC client business we should know, thus Windows will be making a report by the BPR (AI8). * It was discussed that portable mix is going down, and that people are hung up on speed; that customers say if they can get 2x the speed of a portable on a desktop, at half the price of a laptop, then they will take 2 desktops. It was recogmzed that mobile is more attractive, and worth more

MS-CC-RN 000001036811 HIGHLY CONFIDENTIAL




money, and that tablet is part of this recognition. It was suggested that with editors we should be shifting the nomenclature and context from tablet to mobile, and RogersW (AIg) will follow up. * On in-place upgrade from basic to premium versions, it would be broken too quickly if we do this before Trusted Windows, and there are non-zero things to think about in the channel. * It was noted we are making great progress on Mix. For the next major release we need a clearer message on Pro/Base. Positioning was discussed that if you log onto a corporate network, you need Pro, though if you are using RAS or VPN, base will work. * Consumer differentiation is bard and it was suggested that some features on Office.Net only run on Pro. Multiple displays were mentioned as tried in the past and not working. JimAll said we would follow up with JeffR on this (AI10). * Games should be a design point for Longhorn Pro, and that now it is not a conscious part of the roadmap (Al11)

Installed Base Noteworthy Trends * A laptop Iifecycle is shorter, at ~18 months, than the 3-4 years for a desktop.

Plan of Record * With Windows XP, upgrade is much easier, but state migration (e.g. little things in the browser, Office) can be aggravating. This can be improved and should not reqmre Office changes. It was suggested no one thinks about this with enough focus, partially because ITG does a fresh install, but in contrast mentioned that for file & transfer settings, we get very positive feedback.

* It was observed that state should be pulled into a blob file, then one should be able to upgrade over this, and mentioned that we can do this in Windows XP, but that it is not easy and not integrated. It was agreed that state migration and roaming users should be the same thing, and that engineenng already knew this. JimAll said that we might not have enough technical people on tins (AII2),

Ideas

* On an idea of wide distribution of Windows XP after the retail spike with 30 days to activate, it was mentioned we need to 1) make it so users can go back/uninstali; 2) have users know they really can go back. People tend to say either they like Windows XP or that they would like to try it, and it was acknowledged as a little embarrassing to say people might want to go back, but we have to do this. The idea of software that people can try, but if they don’t like it go back (AI13), was recognized as attractive.

* It was suggested that whatever we do here we do in a way that is a platform service; that in particular BSA had said product activation is great: way to go, and if it works, others want to use it. This is true for other ideas such as technology to support software trials, and other software companies don’t want to figure such things out, but if we do, they will use it (AI14).

* On Software Assurance, it was noted this is more important on Windows than on other products. * On a TS CAL in the home, non-traditional clients (e.g. refrigerators) were raised as a challenge. It was explained we could lock down features (emall, browsing) as with Mira, but suggested it would need to go further, such as having no keyboard or ink, and that it wasn’t known how hard it was. JimAll said he wants 2 hours with BillG (AI15) to go over this. It was noted other executives don’t know how to use terminal services either, but clarified it is as simple as typing your machine name Into the browser. *On subscription, there was support for funding efforts here. The idea of the first 18 months free of charge, then charging $20 or so, was raised. It was noted that in the Managed PC trial at fast people said they wouldn’t pay, but then when it ramped down, they wanted it and asked how much.

* On SP+sizzle, it was agreed not to repeat ME, and that if we call something a new release, it has to have a great deal of incremental value, even if that is not what we are being asked by the channels.

Harnessing Non-PC Devices

MS-CC-RN 000001036812 HIGHLY CONFIDENTIAL




Noteworthy Trends

* It was suggested the PC always has to be the superset. It was asked where our Device Better Together effort went, and noted that ToddW is picking up after the reorg. BillG said he would drive something on this (AI16) around images, ink, peer-to-peer. It was mentioned that in the last strategy meeting of the DSLT there was a request for a meeting on devices working together, and that someone fi’om productivity should be there. It was agreed that we wanted to have the apps on the PC superset non-PC devices.

Plan of Record * It was questioned if PCs will ever make it to the same mobility. It was affirmed we need to have the strongest offering for fine full screen, close to user device, and that while Palm would likely not go there themselves, someone with deep pockets could become Palm’s best friend.

Ideas

* On raising royalty as value increases, ours is a premium product already. It was suggested the best idea is the Zenith broadcast network, for $4-9 a month, even if we subtract out the Zenith ebap royalty. There are challenges m wireless radios in PocketPC’s and we are not sure how careers will respond; we are not weak there but we are not powerful. It was asked if we were thinking about Zenith in PC’s; BillG said probably not but that he would talk with Rashid about this (AI17). * PieterK is a big fan of the SMS gateway and we shouid follow up with him (AI 18). * For XBox it was suggested we use TS in XBox to remote a player to another PC. Bandwidth was mentioned as a problem XBox as a 64 MB, 733MHz, 8GB machine that in theory should be able to run a subset of Windows/EHome and fault to the disk, and it doesn’t matter that games don’t ran on Windows/PCs now, because for successful games they tweak every year. It was noted that if eHome ran XBox games it would be huge, but that we can’t do this easily; 2 years if do a great job. JimAll said that he is happy to see what can be done now that this is engaged in (AI19).

Maintalnin Gap vs. Linux

* The NET framework contains the latest developer platform innovation for the future, and it must be licensed like Windows. Subsets have gone about as far as they should go in the standards bodies, but we need a compact subset for phones and TVs. It was noted that we have to be careful because once the horses are out, they are out forever. At the right royalty, we can have the discussions around technology beyond this. * Terminal services were acknowledged as having great potemial; that in all that we do, if we win in the device/application class; that is all that matters; this doesn’t favor MSN, but .. * It was raised if strategically we should invest heavily in children’s software; that the entire business might not be more than a couple hundred $M - mid that we might need to heavily discount the OS as we did in Czechoslovakia. It was mentioned that we could do this, but it might not be that key. * The plan is that images, inks, and still formats will not go to Linux like some of our digital media formats will. This would mean that if someone downloaded images, it might violate patents. There was a discussion era new format where as one takes pictures, the pixel resolution compresses.

Broader Issues

* On key talent, for a presentation architect it has to be someone heavily into graphics; top/down from layout all the way into hardware. It was suggested it should be two people, and that w.e look to Rashid mad Kajiya for ideas (AI20).

* For a next generation OS architect, the notion is to find DaveC 2001. CraigMu’s project was suggested as a place to look, with the caveat it might be too future looking. This new project must look at namespaee & programming model with CLR native, and the former is not that, but it was disaggregation. It was here also suggested it would need to be more than one person, for example we need someone on CLR, but we already have a prototype of CLR native on Windows. It was suggested

MS-CC-RN 000001036813 HIGHLY CONFIDENTIAL




we look to the Indigo team. SteveB dosed suggesting with a meeting with DavidV, CraigMu, BillG, JimAIl on this (AI21). It was agreed this should be someone internal. * On anti-virus, it was mentioned that there were discussions with the heads of two irrteresting companies over the past two weeks. SteveB said he would talk with JimAll 1 : 1 (AI22). It was observed that their advertising on the radio is very compelling, and that the web service offered by one of them is well done.

Anti-Piracy *It was asked if we see the results of product activation in the sales numbers, and noted we do in system builders, even in high piracy countries, but it could be blips before the piracy starts up. It was requested that we should look at activation and sales data (AI23). It was suggested that bulk piracy will overtake individual, and that we only see this in some countries. It was suggested hard dask loading would leak, and acknowledged it already did with the two keys. System builder piracy (counterfeit & HD) was suggested to still be at 50%, but a big uptake at launch was noted. It was mentioned that we are going to move to staging servers within all companies. * It was asked if trusted Windows was after Longhorn, and answered that it should be before: with AMD next summer and Intel in mid-03. SteveB asked for all features in Longhorn to be written down in 2-3 slides (AI24). * It was noted that a federal govemmem mandate for new PC specs is in work next year, and it would be great to get TW in there.

Customer Satisfaction

* Product Activation does not seem to be a big problem. * There are many issue reports from Windows XP, and from these we don’t have the right customer feedback for all our needs. We had expected there would be a lot of reports based on results from Office. IE is a big issue (plug-ins), but graphics is not as some expected, with Nvidia responsible for 8/10 of the video issues. FastTrack KaZaA is a big issue after IE. * Crashes in Outlook go to Office, and JeffR committed to send out the Office reports (AI25). * On blue screen on kernel problems, it was clarified that the machine prompts when it boots. It was commented it might be Blacklce (IDS), which is a 3rd party product. * We are going to trial a "this sucks" button, noting that MSWish does not prowde as much reformation as we would like.

Closing Comments

* JlmAll thanked the people who helped prepare.

* ]t was observed there were no comments on MSN, while we did mention AOL. It was mentioned from the rcorgamzations that there is less opportunity for friction than in the past, and more synergy, and that Msft has both assets. JimAll said he would follow up on this (AI26).

MS-CC-RN 000001036814 HIGHLY CONFIDENTIAL


Comments

Recent Techrights' Posts

António Campinos is Still 'The Fucking President' (in His Own Words) After a Fake 'Election' in 2022 (He Bribed All the Voters to Keep His Seat)
António Campinos and the Administrative Council, whose delegates he clearly bribed with EPO budget in exchange for votes
Adrian von Bidder, homeworking & Debian unexplained deaths
Reprinted with permission from Daniel Pocock
Sainsbury’s Epic Downtime Seems to be Microsoft's Fault and Might Even Constitute a Data Breach (Legal Liability)
one of Britain's largest groceries (and beyond) chains
Matthias Kirschner, FSFE analogous to identity fraud
Reprinted with permission from Daniel Pocock
 
New 'Slides' From Stallman Support (stallmansupport.org) Site
"In celebration of RMS's birthday, we've been playing a bit. We extracted some quotes from the various articles, comments, letters, writings, etc. and put them in the form of a slideshow in the home page."
Thailand: GNU/Linux Up to 6% of Desktops/Laptops, According to statCounter
Desktop Operating System Market Share Thailand
Suicide Cluster Cover-up tactics & Debian exposed
Reprinted with permission from Daniel Pocock
Gemini Links 19/03/2024: A Society That Lost Focus and Abandoning Social Control Media
Links for the day
Matthias Kirschner, FSFE: Plagiarism & Child labour in YH4F
Reprinted with permission from Daniel Pocock
Linux Foundation Boasting About Being Connected to Bill Gates
Examples of boasting about the association
Alexandre Oliva's Article on Monstering Cults
"I'm told an earlier draft version of this post got published elsewhere. Please consider this IMHO improved version instead."
[Meme] 'Russian' Elections in Munich (Bavaria, Germany)
fake elections
Sainsbury's to Techrights: Yes, Our Web Site Broke Down, But We Cannot Say Which Part or Why
Windows TCO?
Plagiarism: Axel Beckert (ETH Zurich) & Debian Developer list hacking
Reprinted with permission from Daniel Pocock
Links 18/03/2024: Putin Cements Power
Links for the day
Flashback 2003: Debian has always had a toxic culture
Reprinted with permission from Daniel Pocock
[Meme] You Know You're Winning the Argument When...
EPO management starts cursing at everybody (which is what's happening)
Catspaw With Attitude
The posts "they" complain about merely point out the facts about this harassment and doxing
'Clown Computing' Businesses Are Waning and the Same Will Happen to 'G.A.I.' Businesses (the 'Hey Hi' Fame)
decrease in "HEY HI" (AI) hype
Free Software Needs Watchdogs, Too
Gentle lapdogs prevent self-regulation and transparency
Gemini Links 18/03/2024: LLM Inference and Can We Survive Technology?
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, March 17, 2024
IRC logs for Sunday, March 17, 2024
Links 17/03/2024: Microsoft Windows Shoves Ads Into Third-Party Software, More Countries Explore TikTok Ban
Links for the day
Molly Russell suicide & Debian Frans Pop, Lucy Wayland, social media deaths
Reprinted with permission from Daniel Pocock
Our Plans for Spring
Later this year we turn 18 and a few months from now our IRC community turns 16
Open Invention Network (OIN) Fails to Explain If Linux is Safe From Microsoft's Software Patent Royalties (Charges)
Keith Bergelt has not replied to queries on this very important matter
RedHat.com, Brought to You by Microsoft Staff
This is totally normal, right?
USPTO Corruption: People Who Don't Use Microsoft Will Be Penalised ~$400 for Each Patent Filing
Not joking!
The Hobbyists of Mozilla, Where the CEO is a Bigger Liability Than All Liabilities Combined
the hobbyist in chief earns much more than colleagues, to say the least; the number quadrupled in a matter of years
Jim Zemlin Says Linux Foundation Should Combat Fraud Together With the Gates Foundation. Maybe They Should Start With Jim's Wife.
There's a class action lawsuit for securities fraud
Not About Linux at All!
nobody bothers with the site anymore; it's marketing, and now even Linux
Links 17/03/2024: Abuses Against Human Rights, Tesla Settlement (and Crash)
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, March 16, 2024
IRC logs for Saturday, March 16, 2024
Under Taliban, GNU/Linux Share Nearly Doubled in Afghanistan, Windows Sank From About 90% to 68.5%
Suffice to say, we're not meaning to imply Taliban is "good"
Debian aggression: woman asked about her profession
Reprinted with permission from Daniel Pocock
Gemini Links 17/03/2024: Winter Can't Hurt Us Anymore and Playstation Plus
Links for the day