IBM-MICROSOFT JOINT DEVELOPMENT
1. Dearborn - the Ultimate NT notebook
2. WolfPack/Scaleablllty
3. Broadcast PC
4. System Management
5. Inter-networking products
6. NetPC
7. Mobile Windows CE Devices
8. Home Networking
9. Windows Terminals
..
NetPC
Description:
NetPC is a new class of desktop PC which includes a disk drive and LAN
connection, but does not generally include any removable storage devices
(floppy, CD, etc.). The goal is to provide a smaller, lower cost,
centrally managed PC client which significantly reduces total cost of
ownership. The operating system (Windows’95 or NT) wlil reside on the
local disk and execute locally, but most applications and data will
reside on the server. Microsoft is also offering a Zero Administration
Kit (ZAK) which will allow customers to easily implement "TaskStation"
and "AppStatlon" modes, which are more restricted (simpler) user
environments. Microsoft plans to add automated system updates, backup,
and server-based user configuration files in 1998 as part of their Zero
Administration Windows (ZAW) initiative. This will allow users to access
their environment and data from anywhere on the network. We need to
become better integrated into these Microsoft initiatives, as they will
be important to our corporate customers and are consistent with PC Co.’s
promise of value.
Status:
Compaq, FIp, Dell, Intel, and Microsoft are driving the NetPC
specification. IBM is working closely with Intel on our NetPC
implementation. The first NetPC’s are expected to be introduced in
2H’97. Microsoft has invited IBM to demonstrate our NetPC in their
partner’s pavilion at PC Expo in New Yorg, June 16-19.
1. Launch IBM’s NetPC in Fall’97.
2. Work on being included in MlcrosoR’s marketing campaign for NetPC’s.
3. Discuss diskless implementations of "NetPC’s" with Microsoft.
..
Home Networking
Description:
IBM is working with Intel on AC power line networking that would allow a
variety of computing devices in the home to communicate with an Apdva
home PC as a home server - or "information fuse box". We would like to
work with Microsoft on the operating systems for the various computing
devices (perhaps Windows CE) and on other software required for total
solutions.
Status:
Microsoft has indicated that they are not ready to meet with us on this.
It is not clear whether they are truly not ready, or just reluctant to
work with IBM due to the status of the overall relationship. HP is also
expected to become a strong contender in this emerging market.
..
Public Visibility of Jolnt Development Activities
Description:
While IBM is participating in some joint development activities with
Microsoft, such as WolfPack and Broadcast PC, Microsoft refrains from
publically recognizing IBM’s involvement and contribution.
Status:
Microsoft has been consistent in limiting IBM’$ public visibility.
Recent examples include Bill Gates’ failure to recognize IBM when
presenting Broadcast PC at WinHEC’97 and Microsoft’s refusal to include
IBM in Scaleability Days, despite our participation in the WolfPack program.
Next Steps:
1. Gain agreement from Microsoft (Steve Baimer) to have public
visibility with IBM.
..
Joint Promotion of IE 4.0
Description:
The launch of IT, 4.0 in Fail’97 is expected to be Microsoft’s major
marketing event in 1997. Microsoft has invited IBM (and other key OEM’s)
to participate in joint promotions, with Microsoft providing some
funding for the activities. I]3M’s participation will help to ensure
that we are one of the first OEM’s to offer IE 4.0 (including content
designed for IE 4.0) and will contribute to changing customer
perceptions regarding the IBM-Microsoft relationship.
Status-..
* A memorandum of understanding for the joint promotions is expecte~l from
Microsoft by May 31st.
* Microsoft is currently planning to exclude OEM’s who are shipping
Netscape from the public launch activities. We have, however, been able
to get Client Systems invited since this brand doesn’t ship Netscape.
Next Steps:
1, Review, negotiate, and sign the IE 4.0 license agreement.
2. Finalize agreement regarding joint promotions.
3. Continue to push for full IBM involvement in launch activities
..
Competitive Business Terms
Description:
IBM currently pays a higher royalty for Microsoft operating systems than
our leading competitors. This Is estimated at $5-$15 per copy for
Windows’g5 and from S25-$40 per copy for Windows NT. These higher costs
put IBM at a competitive disadvantage. In addition, IBM has less
flexible terms and conditions. We need to have the same business term as
HP and Dell - and Compaq after their front line partnership ends.
Status:
We currently have very little negotiating power with regard to royalty
rates and have had mixed success in negotiating more flexible terms. We
were able to negotiate the terms required for PC Co.’s Authorized
Assembler Program
Next Steps:
I. Continue to pressure Microsoft for a level playing field
Include IBM in Commercial Events
Description:
Microsoft is currently excluding IBM from public visibility at any
commercial events, leading customers to question IBM’s relationship with
Mlcrosoft and credibility as a supplier of PC solutions. The reason for
this is that Microsoft does not want to encourage customers to work with
IBM - due to a lack of trust. We need this public visibility as one
ingredient in establishing a level playing field with PC competitors
such as Compaq, HP, and Dell
Status:
Microsoft has stated that they will not invite IBM to commercial events
There is more openness for products targeted at the consumer market.
Recently, we have be excluded from exhibiting a TechEd (an event for
Microsoft’s technical support community) and have been excluded from
purchasing space in Microsoft’s Partner’s Pavilion at PC Expo. However,
we have been invited to show our NetPC in Mlerosoft’s Partners Pavalion
at PC Expo.
Next Steps:
1. Gain agreement from Microsoft (Steve Balmer) to include IBM in
commercial events.
..
Joint Sales Calls for IBM PC Hardware Sales
Description:
With rare exception, Microsoft will not make joint sales calls with IBM
for the sale of PC hardware, while they freely make joint sales calls
with Compaq, HP, and other competitors. This gives competitors an
opporxunit7 to create and/or reinforce customer concerns about IBM’s
relationship with Microsoft and IBM’s credibility as a PC supplier. We
need to convince Microsoft that joint sales calls with IBM sales people
focused on selling PC hardware will provide better customer satisfaction
and will not have an negative impact on Microsoft.
Status:
Limited success on a case-by-case basis, oftentimes at a customer’s
insistence.
1. Continue to push Microsoft on a local level, as requested by customers.
2. Gain agreement from Microsoft (Steve Balmer) for more open joint
sales calls with IBM’s PC hardware sales people..
Provide IBM with Source Code for Level 3 Support
Description:
The Kirkland Programming Center (K.PC) currently has access to NT source
code and is providing worldwide level 3 support to IBM customers. We
need to ensure that we will continue to have access to NT source code
and obtain access to the source code for other Microsoft products
supported by IBM. We are currently focused on keeping the NT source
code, which was originally obtained for the NT port to Power PC, as
Microsoft has begun to question why IBM still needs it. Microsoft
doesn’t seem interested in giving iBM access to source code for other
products.
Next Steps:
1. Respond to Microsoft regarding the NT source, as required.
http://edge-op.org/iowa/www.iowaconsumercase.org/011607/2000/PX02714.pdf
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court documents in the case of Comes v. Microsoft.
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