Bonum Certa Men Certa

Bill Gates Called “LUNIX” a Threat Back in 1997

Eye



Summary: Where is Joachim Kempin today? And what did he talk about with Bill Gates? We have some answers.

Y

ESTERDAY we showed that Microsoft has all sorts of secret teams, in this case the "Delta Force". We sometimes wonder about Microsoft's so-called "special projects". Read the following about Kempin for example:

Like Microsoft's other golden boys, Kempin is neither officially resigning nor being let go. Instead, he will be put out to pasture and oversee as-yet-undetermined "special projects" for CEO Steve Ballmer

Kempin has been a problem child for Microsoft for years. This is a guy who lost his hunting license earlier this year for allegedly using his SUV as a weapon (as in ramming antelopes with his car instead of shooting them).

Kempin once told me he had written into his contract a stipulation that he didn't have to talk to the press. And no wonder: Kempin, more than just about anyone else at Microsoft, knew where the manufacturer bodies were buried.

But Kempin's main claim to fame is that he did more than just about any Microsoft executive (with the possible exception of Bill Gates) to get Microsoft hauled into federal court on antitrust charges.


There is more background information here.

Indeed, little public information is available on the 55-year-old Kempin. According to testimony he gave to the Department of Justice lawyers in October, Kempin joined Microsoft in 1983, where he started out in Germany as country manager. Four years later he landed in the United States as vice president of Microsoft in charge of the then-fledgling company’s support organization and the U.S. OEM group.

[...]

Under Kempin’s tutelage, Microsoft launched the Market Development Agreement (MDA) licensing concept in 1994. The drill for hardware makers went something like this: If OEMs wanted to license Windows 95 but didn’t promote or sell it, they would pay a fairly hefty price per copy. If they agreed to co-promote the operating system in ads or issue a Microsoft-endorsed press release noting they had decided to offer their customers Windows 95 preloaded on new systems, they got a better price.


Kempin is not yet at the age of retirement, so where is he today? And what were those "special projects for CEO Steve Ballmer" -- the ones that CNET talks about?

One might ask, why the interest in Joachim Kempin in the first place? Well, the man was unambiguously threatening OEMs which 'dared' to offer GNU/Linux, among other things. We mentioned him many times before, but a broader Google search reveals little of interest. There is nothing in Wikipedia, either, but there is a private profile in Facebook and evidence that he was giving money to US politicians, just like the Ballmers and Gateses paid Obama last year. At one stage (maybe not at present), Kempin also served in The National Bureau of Asian Research (NBR).

Joachim Kempin joined NBR's Board of Directors in 1999 and, because of his extraordinary service to the institution, was elected as the first Honorary Director in June 2002.

[...]

He began as General Manager of Microsoft's German subsidiary and moved on to spearhead groups such as Product Support Services and International Products Localization. Subsequently, he managed all business operations for Microsoft's intercontinental subsidiaries. Mr. Kempin played a long-term, key role in the OEM division.


“We need a much better strategy to undermine JAVA momentum than we have today.”
      --Bill Gates
Our fascination with Joachim Kempin has everything to do with his anti-Linux actions. And yes, he actually used the term "anti-Linux". Member wallclimber and I decided to look for more evidence of Kempin's so-called "anti-Linux" and we easily found some more, this time in the Web site of the US Department of Justice (before it got corrupted by Microsoft [1, 2, 3, 4, 5, 6, 7, 8]). Here is Exhibit 61 from the US DOJ [PDF] (see the exhibit in its original spot [PDF] if you prefer). Therein, Bill Gates writes to Joachim Kempin with copies sent to Steve Ballmer, Paul Maritz, Jim Allchin, and Nathan Myhrvold (all of whom were top seniors in 1997). Gates writes about threats from Novell, the Web, Java, and also addresses Kempin's pricing methodologies for stifling these emerging trends.

How about this bit?

The biggest threat is absolutely the JAVA phenomena and the ISV excitement that has grown up around that. We have to come in every day knowing that we have NOT solved this problem and in many ways we get weaker every day [Joachim Kempin] If we show the world a pass to easier programming then Java- the cross system issue might go away. I thought we had a project going on this?


Gates then adds:

Another "threat" that combines somewhat with the JAVA threat is low cost UNIX systems LUNIX in particular.


He meant "GNU/Linux", not "LUNIX", but it was new at the scene. Even then, back when Linux was a 6-year-old kernel, Microsoft feared it enough to be listed as a top threat. A few years later (four to be precise), Gates wrote that their "most potent Operating System competitor is Linux."




Appendix: USDOJ exhibit 61, as text










From: Joachim Kempin Sent: Thursday, December 18, 1997 7:10AM To: Bill Gates Cc: Steve Ballmer, Paul Maritz, Jim Allchin (Exchange), Nathan Myhrvold Subject: RE As promissed OEM pricing thoughts

----Original Message---- From: Bill Gates Sent: Wednesday, December 17, 1997 5:10PM To: Joachim Kempin Cc: Steve Ballmer, Paul Maritz, Jim Allchin (Exchange), Nathan Myhrvold Subject: RE As promissed OEM pricing thoughts

This is a very thoughtful document. I have added Jim and Nathan to the discussion since I think they will have valuable input

The document basically points out that move to NT and volume increase are our ONLY upsides for the near future. Windows will be somewhat less than $50 and NT will be somewhat less than $100 in fact the public will probably figure out those numbers over time. (Are the DSP prices under these?) [Joachim Kempin] DSP is currently at $80 for win 95 and $150 for NTW and as long as we gain share we should not lower [Joachim Kempin] . WE have some lower prices in some development countries.

I agree that for the next 2-3 years this is the best plan If we avoid the JAVA threat changing the world I think we will have some upside in the future taking some of the OS and sending it retail/internet Getting this to be high volume is tricky but possible with a strong position I still hesitate on the leasing model but the popularity of the Net and some technical work we are doing will make that a possible approach.

One classic threat has been cloning of Windows APIs I wonder if there isn't more going on here than we know about. I know Noorda was funding 2 different efforts to clone Windows I guess the WABI code has gone into disuse There would be a lot of work and potentially patent problems for someone attacking us [Joachim Kempin] [Joachim Kempin] This is hard to do and hard to maintain- most customers will want the original and any price delta is too small to worry about

The biggest threat is absolutely the JAVA phenomena and the ISV excitement that has grown up around that. We have to come in every day knowing that we have NOT solved this problem and in many ways we get weaker every day [Joachim Kempin] If we show the world a pass to easier programming then Java- the cross system issue might go away. I thought we had a project going on this?

One key point that is not discussed here is nonPC form factors. [Joachim Kempin] I left this out intentionally. I have been talking to a lot of people so has Steve and I share most of the below. The key missing piece is compatibility in my believe CE does not run win 32 apps, not even all 16 bit apps. Developers wnat a seamless environment and a great programming tool and Java sells well here mostly on promisses- but it is convincing. Pricing we should just do as we did when selling DOS- get the biz and think about more $$ per units later.

After my latest trip to Japan I came away with a huge concern about non-PC devices. With great progress in screens, digital audio, digital video, speech, handwriting and the Internet there is a HUGE risk that we will not be called to provide the OS for these devices On the other hand there is upside. We have not been looking at this market properly Craig is way too optimistic. Companies are viewing JAVA as something they can adopt across a large range of devices and have it as a standard. We do not package our offering properly today. We need to get going on speech and handwriting. we need to get more flexible with various pieces. We are building a new VM to compete with the SUN VM. Our pricing for these devices will have to be low. We may find a way to make money on these devices by asking them to connect back to our "Megaserver" services.

GOVERNMENT EXHIBIT 61 MS7 007548 CONFIDENTIAL




We have not thought about how we win ISVs for these devices in a way that JAVA will not We have not thought about what the benefit of PC affinity would be

The high price of Windows for $500 machines does make these nonPC devices more attractive I need some piece of WindowsCE that is super cheap. I think we want to get a lot of money from devices where people create and edit documents and we will get very little money from devices where people just read documents. The boundry here is very unclear. I need to brainstorm with people more on this A low price could screw us and a high price could lose us all these design wins. We need a clever solution.

Another "threat" that combines somewhat with the JAVA threat is low cost UNIX systems LUNIX in particular.

We need a much better strategy to undermine JAVA momentum than we have today. We will have to have some dramatic things and we will have to have rolling thunder SUN will have to show where SUN is going to try and make money on the JAVA phenomena. We need to have our clone work against them to be cheap but go beyond what they do

----Original Message---- From: Joachim Kempin Sent: Tuesday, December 16, 1997 5:37PM To: Bill Gates Cc: Steve Ballmer, Paul Maritz, Joachim Kempin Subject: As promissed OEM pricing thoughts

<< File.draft OEM DT OS PRICING doc >> feedback appreciated



Credit: wallclimber

Recent Techrights' Posts

Dr. Andy Farnell Explains Why Chatbots Became Dishonesty on Top of Dishonesty (Hiding Usage of Dishonest Salads of Words)
new article from CyberShow
Jean-Slop Van Damme and the Art of Bull--- Code
it's saving neither time nor money
Reality Check About IBM's Louis Grestner, Slopfarms Say He Was IBM CEO for 30 Years!
It is "hallucinating" (lying)
 
Microsoft XBox Having a "Dog Ate My Homework" Moment: No New Console Until 3 Years From Now... Because "RAM Prices"
Who will ever remember this in 2028? Nobody.
Gemini End of Year Capsules Tally (Based on Lupa) Shows About 10% Growth
What a difference a year makes
Gemini Links 31/12/2025: New Resolution, Reverse Hexdump, and Programming Languages
Links for the day
Links 31/12/2025: Nvidia Faces Bubble-Bursting Moment, Saudi Oil Money Pumped Into Chatbots to Keep the Energy Waste Going (Circular Financing Again)
Links for the day
Richard Stallman's First Talk in a U.S. College Since 2018
Greetings from Georgia Tech!
EPO People Power - Part XX - Why António Campinos Chose to Put His Cokehead Friend on 'Sick Leave'
EPO Cocainegate will be covered for months to come
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, December 30, 2025
IRC logs for Tuesday, December 30, 2025
Gemini Links 30/12/2025: FreeBSD, Gemlogs, and Xobaque
Links for the day
Get Ready for Gigantic XBox Layoffs at Microsoft (Much Bigger Than in 2025)
he unionisation drive is a sign workers already expect this
Concern Trolls: Stop Criticising Poor Gerstner Because Now He's Dead. Reality Check: Gerstner Has Found a Trick for Dodging Tax on His Hundreds of Millions in Wealth.
Maybe even billions in wealth
Samoa: GNU/Linux and ChromeOS Rose to Around 11%
based on Web access data from Samoa
DnD: Debian and Drugs
There will soon be some interesting new information about Debian
A Conundrum of Privacy/Surveillance: Will You Give Them a Stool Sample to "Feel Humane"?
What if skinnerboxes in South Korea also required that people provide urine and stool samples?
Nope, There's No Twitter "Successor"
There's a lot of horrible abuse going on in social control media
A Calm Year in IRC is a Good Year for IRC
Next year IRC will turn 38 (in August) and in 2028 it'll turn 40, just like the FSF did a couple of months ago
Slopfarms Covering Up for "Microsoft CEO Satya Nadella" After a Terrible Performance and a Terrible Year at Microsoft
How to cause many to resign/retire, hence not be counted as "layoffs"
IBM Was Never Saved, It Has Been a Downhill Journey for Decades Already
Gerstner wasn't a tech person but a fiscal butcher
Some GNU Joiners in Geminispace
Jose E. Marchesi (known for GNU poke and a bunch of other things) adopted Gemini Protocol
IBM Seems to be Doing to HashiCorp What It Did to Red Hat (Many Key People Leaving)
"Today marks my last day at HashiCorp, wrapping up an incredibly rewarding 5-year journey"
State of the Slop, Day 364
How does Phoronix feel about Google promoting slopfarms that 'rewrite' its stories and slap slop images on top?
Links 30/12/2025: "Durian Tsunami" and "Unneeded Surgeries"
Links for the day
Links 30/12/2025: Social Control Media Detox, Rage Against Slop Wasting People's Productive Capacities
Links for the day
Debt as the New Currency?
Rich people get richer because they take money from the rest of us, if not directly then by compelling us (collectively) to borrow money at a national level, then "invest" in them
EPO People Power - Part XIX - "Berenguer Has Known of Campinos' Substance Abuse First Hand For a Long Time"
"You rightfully claimed that Berenguer is Campinos' protegee"
Gemini Links 30/12/2025: Quitting Coffee, Apartment by the Beach, and Strange Retail Ethics
Links for the day
Nintendo and Sony Outsold Microsoft XBox by 15:1!
The mass layoffs indicate Microsoft is aware of this
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, December 29, 2025
IRC logs for Monday, December 29, 2025
Slopfarm: Firing 35,000 Employee is "Saving the Company"
"Big Blue" is getting smaller all the time
Slopfarms About the "Linux CEO" Linus Torvaldos [sic]
nowadays NVIDIA builds and helps build a giant Ponzi scheme
Vista 11 is "10" (Ten Percent)
Some months ago Microsoft openly admitted that it had lost (shed off) hundreds of millions of Windows users
Dealing With Online Pogroms
lawfare funded by third parties
The Year Apple Would Rather Forget
We await further stumbles and falls from Apple (in 2026)
"EU's reform agenda threatens to erase a decade of digital rights"
This is really sad for those of us who spent decades promoting and boosting/advocating the EU
IBM Layoffs in India, More Coming Soon, Say Apparent Insiders
Threads regarding IBM layoffs
Gemini Links 29/12/2025: Earlier "Happy New Year 2026" and "Dead Archivist Society"
Links for the day
Links 29/12/2025: Putin Critic Sergei Udaltsov Imprisoned, Cloudflare’s Outages Discussed
Links for the day
LLMs Are Inherently Parasitic, We Need to Treat Them Accordingly
a maintenance burden for those who possess actual intelligence
Links 29/12/2025: Bottled Water Considered Harmful, Cheetos Promoting Nazis in Europe
Links for the day
EPO People Power - Part XVIII - European Patent Office "Paints Itself as Progressive While Literally Being Represented by Cokeheads"
To what length/s will German authorities and media (not just in Germany) go to protect the EPO's "precious image"?
What IBM Will Do to Red Hat in the Coming Year or Years
This won't end up well for GNU/Linux as a whole
Not Turning in His Grave: When People Die, Their Corporate Destruction Becomes a "Turnaround"
All he did was mass layoffs - a tradition that has not ended since then
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, December 28, 2025
IRC logs for Sunday, December 28, 2025
Louis Gerstner Has Died, His Legacy of Mass Layoffs at IBM Hasn't
Hagiographies will follow. They will say he "saved" IBM.
Links 29/12/2025: The Sunday Routine, Limits of Memory, and Gemini Vocabulary
Links for the day