Bonum Certa Men Certa

How Steve Ballmer (and Colleagues) Deliberately Sabotaged OS/2

Dirty little secret documented in buried court exhibits

Summary: While IBM and Microsoft were still officially "partners" on OS/2, Microsoft got someone to write a "bad app" to crash on OS/2. Steve Ballmer then took this "bad app" on the road to demonstrate that OS/2 was unstable. This, for an executive of the world's "most innovative" software company, is a new low because he knew what he was doing.

THE following is a true 'smoking gun'. It shows that Microsoft deliberately included a "bad app" so as to sabotage the OS/2 demonstrations. They all knew about it and apparently approved it, as no-one objected. Among those in circulation: Bill Gates, Paul Maritz, and Jim Allchin.



To re-iterate what we have here, Microsoft used a "bad app" to take on the road to crash on OS/2. This sets a good background for other stories of Microsoft's attack on OS/2 -- a subject which we carry on documenting.

For today's stories we bring together two court exhibits, which are available in full as text in Appendix A & B.

Here is a portion from Exhibit px_0860 (1991) [PDF]. Cameron Myhrvold, the brother of Microsoft's patent troll, is being sent a message that shows Bill Gates freaking out because OS/2 is better than Windows. Gates writes:

This report highlights our failure to get our message out.

It praises Os/2 2.0 endlessly using the charts from the IBM white papers. For example the chart showing windows giving you only 506k of memory and Os/2 giving you 620k.

It praises the better windows than windows capability - including "one of the best attributes of windows applications run within Os/2 is the superior system intgrity. Should an application crash you can just closre the session and continue. No need to close down and restart. Performance is helped by Os/2 preemptive multitasking and the ability to share I/o. At the roll out bash in New York IBM demonstated the same windows application running on a Windows machine and on an Os/2 machine. Certainly there is no performance trade off for the greater stability offered by Os/2 2.0"

In a section called Os/2 does it better he goes on to say:

As an integrating enviroment Os/2 provides some nice enhancements over plain windows. First Os/2 2 can run both windows 2 and windows 3 applications at the same time.

Later we read:

Os/2 2 is undoubtedly a splendid integration environment. Even with the early code wve see it does indeed run dos better than doas, windows better than windows and so on. With the new pricing it is difficult to think of a reason for not using Os/2 at the integrating environment. If you can get a better environment for the same amount of money as windows wouldnt you make the switch other factors such as hardware cost being equal?

He reviews our strategy in a fairly negative way.

I am sure I will get back some message about how steve will see these people and it will all be better. It wont be better. No one is taking responsibility for getting our message out broadly. Yes someone should call mike and sicuss this exact points but the customers will read what he has written. We should recognize we are loving this battle and we need a lot mor creativity to get on top of it.



Now, check out what Steve Ballmer is up to (with all those in management as witnesses, including Brad Silverberg, Paul Maritz, and Jim Allchin):

From w-clair1 Thu Jul 25 19:46:22 1991 To: billg bradsi jimall jonl mikehal paulma richab russw scotto steveb Cc: billmi cameronm carls garygi julieg martyta mikemap rogersw w-clairl w-pamed Subject: SteveB press tour trip report (long mail) Date: Wed Apr 29 19:11:09 PDT 1992

Date: Thu Jul 25 19:33:28 1991

SteveB went on the road to see the top weeklies, industry analysts and business press this week to give our systems strategy. The meetings included demos of Windows 3.1 (pen and multimedia included), Windows NT, OS/2 2.0 including a performance comparison to Windows and a "bad app" that corrupted other applications and crashed the system. It was a very valuable trip and needs to be repeated by other MS executives throughout the next month so we hit all the publications and analysts.


What is this "bad app"? It already says quite clearly that it "corrupted other applications and crashed the system." Was it designed to achieve this? Let's find out. Further down it says:

4. The demos of OS/2 were excellent. Crashing the system had the intended effect--to FUD OS/2 2.0. People paid attention to this demo and were often surprised to our favor.


That's pretty clear. The whole exhibit is well worth reading. See for example how Microsoft handles the press following the FUD attack, including people like "Ed Bott", whom we all know these days for being in Microsoft's pocket.

Business Press:

Good meetings with Paul Carroll, Wall Street Journal, Evan Schwartz, Business Week, and John Marcoff, New York Times. Paul had several misconceptions that IBM had planted. He said that he is getting back into daily writing and appreciated the update. Evan is interested in spinning out the scenarios for the next ten years of the PC industry for their big story. He asked about Novell, IBM, object technology--what does it mean really. Marcoff had been to Boca--he said that it was really "disorganized" down there. He asked about the meeting between Scully and BillG--Steve said it was of no consequence. Marcoff said the industry strategy seems to be to "get Microsoft." He said he buys the OS/2 scenario that Steve gave. He was curious if Microsoft and IBM are now "enemies." Steve said no, but we truly compete and we don't see much chance of change in current situation.

Magazines:

PC Week was lengthy. Paul Sherer asks very good questions about the strategy. Sam Whitmore was somewhat hostile. He demanded to know if he could talk to BillG about the Scully/BillG meeting and did not seem to believe Steve about the discussion the two had. PC Week is doing one story that will be inside the magazine. (The cover will have a scoop on Windows Word 2.0, a MS/Great Plains deal, the Microsoft analyst meeting). PC Week will continue to be skeptical of Microsoft.

Computerworld was a good meeting. Paul Gillan and Tish asked the expected questions. Paul reiterated that he needs to get out to Microsoft in the next year to get a complete update.

Infoworld. A good meeting, lots of editors were there. Questions were on our product strategy, geopolitical issues, how can Microsoft think it will beat IBM. They are doing a story for next week.

CRN. They were briefed over the phone and will do a story, focused on Windows NT, and LAN Manager for NT.

PC Computing. Good turnout from the editorial staff. Dale LeWallen will keep the staff straight on technical matters. The new executive editor, Ed Bott, was highly interested in our product plans and we can work with them for good coverage on Windows 3.1 and Windows NT.


As we stated earlier, it remains to be shows that the "bad app" was intentionally designed to be malicious. Proof of this can be found in Exhibit px_0797 (1991) [PDF]. Here is the complementary 'smoking gun':

| > From ericfo Thu Jun 27 09:27:07 1991 | To: paulma | Subject: Re: One Bad App | Date: Thu Jun 27 09:28:30 1991 | | I tested on 1.21, 1.3 and 2.0 and it hangs all systems equally well... | | | > From paulma Thu Jun 27 07:30:47 1991 | | To: ericfo | | Subject: One Bad App | | Date: Thu Jun 27 07:30:08 1991 | | | | OK, thx. I will come around. | | | | > From ericfo Wed Jun 26 19:59:16 1991

| | To: paulma | | Subject: One Bad App | | Date: Wed Jun 26 20:02:30 1991 | | | | I have written a PM app that hangs the system (sometimes quite graphically). | | | | You can take a look at it anytime, just let me know... | | | | Eric | | |


Notice who is being told that the "bad app" was being built? Paul Maritz, the current CEO of VMware. What is shown above is criminal bevaviour, but none of those involved is behind bars.

The use of this "bad app" is covered in that previous Steve Ballmer and OS/2 memo. This is huge, as it shows that they went out and designed an application specifically to crash on OS/2 and then Steve Ballmer went on the road and demonstrated OS/2 with it, explicitly knowing what it was designed to achieve.

"This is depressing reading," remarks one of our readers. "Add those bits to the Ballmer FUDs OS/2 wiki articles. Put the emails in order of conversation by date. Do check the originals for accuracy. And the DOJ never used this stuff. Someone must of told them to go easy."

What can we deduce from this incident about contemporary events? Microsoft is trying to make ODF look bad by fragmenting it [1, 2, 3, 4, 5, 6, 7]. That in its own right has a similar effect; we just don't have the memos to prove anything intentional.




Appendix A: Comes vs. Microsoft - exhibit px_0860, as text










PLANTIFF'S EXHIBIT 860 Comes v. Microsoft

From jonl Wed Jul 24 23:42:44 1991 To: cameronm Subject: Seybold report on office computing Date: Wed Apr 29 19:11:02 PDT 1992

Date: Wed Jul 24 23:42:16 1991

>From billg Wed Jul 24 10:51:31 1991 To: jonl steveb Subject: Seybold report on office computing Cc: carls jeffr martyta mikehal paulma russw W-pamed Date: Wed Jul 24 10:51:16 1991

This report highlights our failure to get our message out.

It praises Os/2 2.0 endlessly using the charts from the IBM white papers. For example the chart showing windows giving you only 506k of memory and Os/2 giving you 620k.

It praises the better windows than windows capability - including "one of the best attributes of windows applications run within Os/2 is the superior system intgrity. Should an application crash you can just closre the session and continue. No need to close down and restart. Performance is helped by Os/2 preemptive multitasking and the ability to share I/o. At the roll out bash in New York IBM demonstated the same windows application running on a Windows machine and on an Os/2 machine. Certainly there is no performance trade off for the greater stability offered by Os/2 2.0"

In a section called Os/2 does it better he goes on to say:

As an integrating enviroment Os/2 provides some nice enhancements over plain windows. First Os/2 2 can run both windows 2 and windows 3 applications at the same time.

Later we read:

Os/2 2 is undoubtedly a splendid integration environment. Even with the early code wve see it does indeed run dos better than doas, windows better than windows and so on. With the new pricing it is difficult to think of a reason for not using Os/2 at the integrating environment. If you can get a better environment for the same amount of money as windows wouldnt you make the switch other factors such as hardware cost being equal?

He reviews our strategy in a fairly negative way.

x 547372 CONFIDENTIAL

WinMail 1.21 lynnra Wed Apr 29 18:57:00 1992

Page: 120

EXH 96 DATE 2/14/02 WITNESS Silverberg

------------------ page break ------------------------

I am sure I will get back some message about how steve will see these people and it will all be better. It wont be better. No one is taking responsibility for getting our message out broadly. Yes someone should call mike and sicuss this exact points but the customers will read what he has written. We should recognize we are loving this battle and we need a lot mor creativity to get on top of it.

From w-clair1 Thu Jul 25 19:46:22 1991 To: billg bradsi jimall jonl mikehal paulma richab russw scotto steveb Cc: billmi cameronm carls garygi julieg martyta mikemap rogersw w-clairl w-pamed Subject: SteveB press tour trip report (long mail) Date: Wed Apr 29 19:11:09 PDT 1992

Date: Thu Jul 25 19:33:28 1991

SteveB went on the road to see the top weeklies, industry analysts and business press this week to give our systems strategy. The meetings included demos of Windows 3.1 (pen and multimedia included), Windows NT, OS/2 2.0 including a performance comparison to Windows and a "bad app" that corrupted other applications and crashed the system. It was a very valuable trip and needs to be repeated by other MS executives throughout the next month so we hit all the publications and analysts.

Summary:

1. The feedback from the editors and analysts is that the Microsoft Windows-centric strategy is clear. Steve cleared away the cobwebs spun by IBM and our own formerly more convoluted messages on the roles of Windows vs OS/2.

2. There is healthy skepticism about IBM's ability to deliver what they promised in OS/2 2.0 and in IBM's overall future strategy. Steve did a great job of explaining how IBM will have a very hard time delivering on the promise.

3. However, many take a "wait and see" attitude toward the possibility of IBM success with OS/2 2.0. Common wisdom seems to be that some corporate accounts will go with OS/2 regardless since it's "blue" and that if they deliver a good product customers will be forced to chose it or Windows.

4. The demos of OS/2 were excellent. Crashing the system had the intended effect--to FUD OS/2 2.0. People paid attention to this demo and were often surprised to our favor. Steve positioned it as --OS/2 is not "bad" but that from a

X 547373 CONFIDENTIAL

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Page: 121

------------------ page break ------------------------

performance and "robustness" standpoint, it is NOT better than Windows. We know the design point, we know what's in it. Forrester Research is publishing a bulletin tomorrow that says "Ballmer exploded some "myths" about OS/2: It doesn't run Windows applications presently, it's not bullet proof and dependable--MS was able to demonstrate several instances of OS/2 crashing!

5. Everyone asked us how Microsoft feels about the general "geopolitical" situation. We were questioned on how we viewed the Apple/IBM deal (Steve: I wouldn't want the job as development manager for the mother of all operating systems), the Novell/DRI deal (Steve: there are several scenarios there- -not clear what they can do with this), the BillG memo (Steve: We did not leak it and it really caused me to spend time cleaning up fires). Several people told us Microsoft is more isolated now. Steve made the point that we have a good technical relationships with most of the companies that might be combative on a marketing front. Generally, the view is that the PC world is undergoing major shifts (albeit longer term) and whatever the resolution, Microsoft's role will be in some way, major or minor, changed.

6. The general agreement is that ISVs are not confused about what to develop for--Windows--regardless of the outcome of the OS/2 2.0/Windows horse race. We were told that Frank King said--I don't have to worry about supporting OS/2 2.0 since IBM has promised Windows support. If they don't do good Windows support, I'm still in great shape.

7. The Windows NT demo went a long way toward proving that this technology is far along. Checking back, the feedback is that Windows NT was viewed as important for several reasons:

o It's far along o It's Microsoft's forward path, not OS/2 3.0 o LAN Man will be supported on it o It is the ACE platform, not "OS/2 3.0" o The OS/2 subsystem for Windows NT is only for a small subset of customers that will need it.

a. We discussed the state of the IBM relationship and made the point that in April, IBM made our path clear. Doug Cayne of Gartner said, Microsoft has taken off the kid gloves.

Here is high-level summary of the meetings. Action items, details to be sent separately.

X 547374 CONFIDENTIAL

WinMail 1.21 lynnra Wed Apr 29 10:57:00 1992,

Page: 122

------------------ page break ------------------------

Business Press:

Good meetings with Paul Carroll, Wall Street Journal, Evan Schwartz, Business Week, and John Marcoff, New York Times. Paul had several misconceptions that IBM had planted. He said that he is getting back into daily writing and appreciated the update. Evan is interested in spinning out the scenarios for the next ten years of the PC industry for their big story. He asked about Novell, IBM, object technology--what does it mean really. Marcoff had been to Boca--he said that it was really "disorganized" down there. He asked about the meeting between Scully and BillG--Steve said it was of no consequence. Marcoff said the industry strategy seems to be to "get Microsoft." He said he buys the OS/2 scenario that Steve gave. He was curious if Microsoft and IBM are now "enemies." Steve said no, but we truly compete and we don't see much chance of change in current situation.

Magazines:

PC Week was lengthy. Paul Sherer asks very good questions about the strategy. Sam Whitmore was somewhat hostile. He demanded to know if he could talk to BillG about the Scully/BillG meeting and did not seem to believe Steve about the discussion the two had. PC Week is doing one story that will be inside the magazine. (The cover will have a scoop on Windows Word 2.0, a MS/Great Plains deal, the Microsoft analyst meeting). PC Week will continue to be skeptical of Microsoft.

Computerworld was a good meeting. Paul Gillan and Tish asked the expected questions. Paul reiterated that he needs to get out to Microsoft in the next year to get a complete update.

Infoworld. A good meeting, lots of editors were there. Questions were on our product strategy, geopolitical issues, how can Microsoft think it will beat IBM. They are doing a story for next week.

CRN. They were briefed over the phone and will do a story, focused on Windows NT, and LAN Manager for NT.

PC Computing. Good turnout from the editorial staff. Dale LeWallen will keep the staff straight on technical matters. The new executive editor, Ed Bott, was highly interested in our product plans and we can work with them for good coverage on Windows 3.1 and Windows NT.

Analysts:

X 547375 CONFIDENTIAL

WinMail 1.21 lynnra Wed Apr 29 18:57:00 1992

Page: 123

------------------ page break ------------------------

Gartner has been openly critical of IBM's strategy. They told us they are on the outs with IBM as a result. However, they think it will take time to prove out who wins the desktop.

Forrester said that Microsoft has not had such a clear strategy in 18 months and we impressed them with the data. They are putting out a bulletin tomorrow. This was prodictive.

Dataquest and IDC had misconceptions that we cleared up. Nancy McSharry had 3 sets of projections for OS/2 (low, medium, high) that in the best case scenario showed OS/2 with 25% market share only by 1995. On unrelated matter, she told us she could not get Windows to run on her 386--we need to do this for her.

Esther Dyson thinks MS is too big and slow to do good work; conversely she thinks that the Apple/IBM deal could result in good things. We should have her meet with Allchin to talk about objects etc.

Jeff Tarter had an excellent meeting with Steve. This is the first time they had met. Steve did a good job of relating to Jeff's focus. Jeff told us that for the first time he sees Windows offering things that the Mac cannot. He is highly skeptical of the Apple/IBM deal as well. We need to invite Jeff to the Windows strategy briefing in Boston--he likes to talk to small developers.

From marlyla Fri Jul 26 09:38:12 1991 To: cameronm Cc: w-clairl w-pamed Subject: RE: Stewart Alsop Date: Wed Apr 29 19:11:31 PDT 1992

Date: Fri Jul 26 09:36:00 PDT 1991

Sure do it. Also he is planning to be at MS the week of August 19th. You might want to invite him to drop by.

Also, keep in mind that Steveb has a conservative approach to this issue. He is concerned that we not over-promise a great developer support program until we have proven that we can do a good job at it. So position your efforts as growing.

X 547376 CONFIDENTIAL

WinMail 1.21 lynnra Wed April 29 18:57:00 1992 Page: 124



Credit: wallclimber and RCH.




Appendix B: Comes vs. Microsoft - exhibit px_0797, as text








PLAINTIFF'S EXHIBIT 797 Comes v. Microsoft

| Compaq | | 12. Get Windows positioned as where the action/apps are: | Leverage the releases of 123/W and WP/W in any way | possible - the lack of a decent WP & 123 for OS/2 is a big | negative for OS/2, and positive for Windows. Is there | anyway we can really get this to work for Windows? | Personnally I would be willing to sacrifice Excel/Word a | little on this front. | | 13. Keep the ISVs loyal - sell Win architecture to them heavily. | | 14. Develope pro-active plan to sell Windows to the corporate | developers: | - Visual Basic focus in H2'CY91? | - Corporate Developers focus on Win32 and Win/NT in H1'CY91? | | | |

####################################################### 156 >From bradsi Fri Jun 28 08:38:57 1991 To: davidcol Subject: PM Bad App... Date: Fri Jun 28 08:38:56 1991

| > From paulma Thu Jun 27 09:38:17 1991 | To: bobmu bradsi carls jonl steveb | Subject: PM Bad App... | Cc: ericfo | Date Thu Jun 27 09:30:12 1991 | | > From ericfo Thu Jun 27 09:27:07 1991 | To: paulma | Subject: Re: One Bad App | Date: Thu Jun 27 09:28:30 1991 | | I tested on 1.21, 1.3 and 2.0 and it hangs all systems equally well... | | | > From paulma Thu Jun 27 07:30:47 1991 | | To: ericfo | | Subject: One Bad App | | Date: Thu Jun 27 07:30:08 1991 | | | | OK, thx. I will come around. | | | | > From ericfo Wed Jun 26 19:59:16 1991

EXH 18 Date 10/24/01 WITNESS Maritz MARY W. MILLER

MS 5062179 CONFIDENTIAL

.............. ( page break ) .............

| | To: paulma | | Subject: One Bad App | | Date: Wed Jun 26 20:02:30 1991 | | | | I have written a PM app that hangs the system (sometimes quite graphically). | | | | You can take a look at it anytime, just let me know... | | | | Eric | | |

####################################################### 157 From: bradsi Fri Jun 28 10:36:14 1991 To: karlst lins Cc: philba Subject: Re: people etc Date: Fri Jun 28 10:36:10 1991

You have nothing to worry about. If your people continue to do well, they will get promoted in time, make more money, and do good work. If they continue to perform at above average levels, they will continue to get above average ratings, etc.

####################################################### 158 From: bradsi To: ericst Subject: Re: johnen Date: Fri Jun 28 10:38:27 1991

excellent points. yes, improved test methodology is a key objective.

####################################################### 159 From: bradsi Fri Jun 28 10:41:19 1991 To: cameronm richab richt ruthannl w-clairl Cc: chrisp jonre w-connib w-gabya Subject: Re: PC Magazine readership survey Date: Fri Jun 28 10:41:10 1991

we have heard the same from jonathan seybold.

MS 50662180 CONFIDENTIAL



Credit: wallclimber and RCH.

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