To: Debbie Dean, Stewart Kanzen, Gordon kanzan, Gordon Letwin, Scott
McGregor, Leo Nikora, Leo Nikora, Steve Rowe, John Sabol, Tandy Trower,
Greg Whitten
FROM: Steve Ballmer
DATE: December 10, 1994
SUBJECT: Systems Retreat Summary
cc: Paul Allen, Bill Gates, Jon Shirley
Attached for your information is a summary of our retreat held on
December 1st and 2nd. Direct any questions you may have to me.
dgh
also: Scott Oki
Jim Hams
Adrian King
Steve Snyder
Chris Larson
DOS and GWB
Per System Money = units x $/unit - old advances + new advances
..
How do we make more per system money?
- More $/machine
- More/copy revenue (extensions)
- Home market
- More units
- More from IBM
- Dumb Terminals
..
DRI
Strong in special deals, IBM Austin, Motorola, Atari, AT&T
$53MM in sales (larger than MS?)
Business
MS_DOS MS wins
XENIX MS wins
Languages MS wins
Windows -
Multitasking DRI Ahead
8 bit
Net
We make money by selling one redirector/net card Goal: $2MM per year.
..
Key Businesses
BASIC and DOS non-IBM
BASIC and DOS IBM
Windows (problems keyboard, Topview, VDI, standalone?)
XENIX
MSX
Retail Languages
Goal
Deliver $55M in sales for next two years 60% pre-tax
..
IMPORTANT MARKET TRENDS '85
* COMPATIBILITY WITH IBM
- H.P., T.I., DEC, SPERRY, TANDY, OTHERS
- NOT WANG, WHO ELSE?
* RETAIL DISTRIBUTION OPPURTUNITY GONE
- DEC, T.I., COLUMBIA DATA, ITT, ATT(?), MOST CLONES
- NO NEW PLAYERS WILL GET IN
+ SPERRY, NCR, ITT, BURROUGHS, HONEYWELL, ATT(?), DG(?)
- CDC, PRIME, DG(?), COMPAQ(?)
- SEEQA, CORONA, COLUMBIA DATA, MOST MICRO CLONES CLONES
* OS "EXTENSIONS" BATTLE
- NETWORK VS. A CAST OF THOUSANDS
- WINDOWS VS. TOPVIEW VS. GEM VS. ?
* MULTIUSER SYSTEMS
- NET AND XENIX/UNIX
* DOS SHAKEOUT WILL CONTINUE AND GET WORSE
- COLUMBIA DATA, SEEQUA, CORONA(?), TELEVIDEO(?), NS, VECTOR, GRAPHIC, ETC
(Lose Sperry only, lose Phillips bus)
- SURVIVORS WILL MAKE MUCH SMALLER COMMITMENTS
IMPORTANT MARKET TRENDS (MORE)
* XENIX STARTUPS WILL GROW FOR 286 AND 386
- SPECTRA, ETC
* VAR CHANNEL WILL GROW IN IMPORTANCE
- MULTIUSER APPS
- NETWORK APPS
* WILL THERE BE ANY NON-EMBEDDED APPLICATIONS FOR NON-INTEL CHIPS? WHAT
WILL HAPPEN TO ZILOG AND NATIONAL
..
MS-DOS
WINNERS IN '85
COMPAQ 15,000 u/mo. Retail Only Solid (if anybody)
T.I Retail/Direct Solid
H.P Direct Solid
DEC Direct Solid (?)
WANG (?) Direct (?)
ZENITH Direct Solid
TANDY Direct Solid
DATA GENERAL Direct/Retail Solid
SPERRY Direct Solid
AT&T Retail/Direct Solid
BURROUGHS Direct Solid
NCR Direct Solid
40,000 u/mo.
BIll at 50,000 units/month total
LOSERS IN '85
TELEVIDEO (What will they do?)
COLUMBIA DATA (Going nowhere)
KAYPRO (Management)
HONYWELL (DOA)
DATAPOINT (
PRIME (DOA)
SEEQUA
XEROX
MANY NO-NAMES
MS-DOS ISSUES
* BATTLE IS OVER FOR OS - WE WON
- WINDOWS VS. GEM - WE HAVE NOT WON
- ISV PROGRAM IS KEY
* MULTITASKING DOS
- SOLID SCHEDULE COMMITMENT NOW
* NETWORKS
- XENIX IS BEST LEVERAGE
xenix key to DOS | compat our only value-added at key to Net
* BUNDLING IS BEST LEVERAGE
* BUNDLING/PRICING
- CHARGE MUCH MORE FOR DOS - 2, 3.X
- LESS FOR BASIC
- BUNDLE DOS/BASIC/WINDOWS/NET (?)
- STOP FAMILY PRICING, GET SEPERATE COMMITMENTS PER PRODUCT
- ACCELERATE 1ST YEAR QUATERELY PAYMENTS OR 1 YEAR UP-FRONT
* MAYBE WE SHOULD SKIP MT-DOS AND GO FOR DOS 5.0 (Multitasking in Windows)
- SCHEDULE IMPACT
- GREAT PRICING OPPURTUNITY!! DOS, WIN
* ROLL OVER FLAT FEES, WATCH INSTALLED BASE
XENIX
WINNERS/LOSERS IN '85
* TOO SOON TO CALL - LET'S PICK FROM ATTACHED LIST
* 150,000 UNITS IN '85
* KEY PAYERS
- ALTOS (+) 16,000
- AT&T (+)
- SPERRY (+)
- SPECTRA (?)
- DURANGO (-)
- NCR (+)
- TANDY (+)
SEE ATACHED LIST
XENIX ISSUES
* IF THIS IS A KEY REVENUE FOR MS, WHY ARE WE WORKING WITH AT&T
- OMFs
* LANGUAGES ARE CRITICAL and late
- basic and cobol
- DEBUGGING TOOLS (SOURCE LEVEL)
* RETARGETABLE COMPILERS WILL HELP KILL OTHER PORTS OF UNIX
* CHARACTER WINDOWS PRODUCTS MAY BE BETTER THAN MS-WIN STRATEGY:
TECHNOLOGY NOT THERE, 386 BETTER TIMING (IF I WAS DRI I WOULD ATTACK MS
HERE!)
* GRAPHICS MODE APPS MARKET UNCLEAR
- CHARACTER MODE BETTER SHORT TERM ('95 - '86) ?
* XENIX NET IS KEY TO STANDARD FOR DOS TOO.
* VERY FEW NON-COMPATBLE WILL EMERGE
- SEL ALL PACKAGED GOODS
* TRAINING, TRAINING, TRAINING
..
PLANNED 80286 MACHINES
OEM Model Announce Account Mode MS-DOS XENIX
...
http://edge-op.org/iowa/www.iowaconsumercase.org/011607/5000/PX05002.pdf
--
court documents in the case of Comes v Microsoft.
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