The Microsoft Way

by Randall E. Stross

Book Overview

"An engaging look at Microsoft's success"--The San Francisco Chronicle

• Format: Paperback
• Language: English
• ISBN: 020132797X
• ISBN13: 9780201327977
• Release Date: August 1997
• Publisher: Basic Books
• Length: 332 Pages
• Weight: 0.44 lbs.
• Dimensions: 0.9" x 5.4" x 8.3"

Customer Reviews

The positive feedback cycle phenomenon

1. Mike Maples said, "My job is to get a fair share of the software applications market, and to me that's one hundred percent." In 1994, Steve Ballmer in his best shouting voice reported increases for Word, Excel, Powerpoint, and Office shouting "its Market share, market share, market share", "keeping competitors grasping for oxygen". 2. In 1990, when Microsoft Excel had no chance of stealing market share from Lotus, Gates stated, "if everyone at Lotus went on vacation for a year, we'd still have a hard time competing with 1-2-3 because its momentum would still be there. Once you get to the dominate position, the rewards are incredible." The potential rewards are commensurate with the challenges of unseating the market leader. Momentum is created from customer loyalty, reputation, promoting and pricing software, by training users, and by navigating the strategic challenges in an industry characterized by high fixed and low marginal costs. 3. In the 1980 Microsoft Excel far outsold Lotus Jazz for the Macintosh. Gates observed, "one the market anoints a leader the entire universe of third-party support - all the books, all the templates, all the training, all the stores stocking - heads in the direction of the leader, too" 4. The software industry lowered the cost of personal computing as the user learned more about the software and it is likely the software will improve; more members join the network; scale of economies in production reduce cost; software helps risk-aversion giving more understanding about complex system and thus adoption is less likely to contain unknown risks; and adoption of a given technology spawns various sub technologies and technical infrastructure that make it increasingly difficult to displace the technology. 5. Nathan Myhrvold predicted software application leaders get 60 to 70 percent of the market and the runner up gets 60-70 percent of the remainder. The market share leader in operating system gets 90 percent of the market and the runner-up gets 90 percent of the remainder. In 1995, Microsoft office had a 90 percent share of the suite segment of the market, exactly what Myhrvold's earlier remarks had predicted. 6. The consistency of the positive feedback cycle phenomenon suggests that people see considerable benefits in choosing technology that others have also chose. Customers are not force to choose a software. Customer evaluation of the technical, financial, and ancillary benefits of the Software determine the stickiness of the products. Gates would truculently invite critics to name a Microsoft product that's successful and isn't a top rated product - "we don't have one". 7. Early at Microsoft, Gates reasoned that dramatic improvements in microprocessor would fuel the growth of Microsoft and that of the larger PC industry. The idea that the exponential improving semiconductor technology would create new business opportunities was a prevalent belief. The fact that software developers could not keep pac

Balanced and well-researched

I found this to be a very well-researched book. Stross provides details for all his points and conclusions. This is not a book by someone can can see no good in MSFT, nor by someone who can see no bad in MSFT.An excellent book if one wants to understand what makes a great software firm.

Shows the intellectual nature of Microsoft

After the distorted and hateful stories we have seen, this book is a relief. It seems that at the present time Microsoft stands for all that is evil. The unholy alliance surrounding the Axis Powers of Sun Micro and Netscape paints a picture of world domination by Microsoft which is utterly absurd and totally false. It is unfortunate that Joel Klein of the DOJ is being educated by such an obscure economist as Arthur, formerly of Stanford and a Palo Alto law firm, whose members are writing briefs for the DOJ.. As a taxpayer I regret that we have to pay for these pointless investigations which are sponsored by competitors who would do better improving their products so that they could compete with Microsoft. Unable to compete however, they run to the DOJ. It is good to have a book that points out some of the mischief emanating from Silicon Valley and Redwood City. The book is recommneded readingfor all who do not despise Microsoft for its intellectual excellence.

Inciteful, provactive critique of a corporate colossus

Breathtakingly explicit. Personal anyalysis based on his research and first-hand experience, Mr. Stross has weaved yet another amazingly unbiased research story!

The most accurate history-tale of a living legend!!

Stross tells the truth!! A complete and unbiased history of legend/ genious Bill "Ioniare" Gates. The story is told of his three basic principals on which the mega-conglomerate giant bases his fortune. He tells the truth about the long heard myth of Steve Jobs and Bill Gates homosexual love affair that caused Steve Jobs to leave Apple and start neXT. How Gates and his mother dealt with Aids and herion addiction during the strenous Windows '95 Roll Out!! Highly reccomende