Open Systems For Open Markets

1
Open Systems For Open Markets
May 7th to 9th, 2001 Crystal City, Virginia
Edward J. Black President CEO Computer
Communications Industry Association
2
A SAMPLE OF CCIA MEMBERS
3
The Computer Communications Industry
Association (CCIA)
Open Markets, Open Systems, and Full, Fair, and
Open Competition

• CCIA works to
• Ensure that the future of the technology industry
  will be based on open-systems, standards and
  protocols.
• Promote competition, innovation and consumer
  choice

4
Importance of Open Systems
Two Scenarios

• Closed Proprietary System
• Single Vendor or Supplier
• One Size That May Not Fit All
• Open System Vision
• Free To Go To Any Vendor
• Customer Choice
• Cross-System Interoperability
• Security

5
CCIA Partnerships

• Interoperability Clearinghouse
• Validation of Industry Best Practices
• Shared Information

6
Whats at Stake?
Interoperability vitally important for
Enterprises, Networks and the Internet

• Control of Enterprises Institutional
  Infrastructure
• Control of how Networks can run
• Control the whole underpinning of the Internet
• Without Interoperability, singular entities or
  Monopolies will control the future of all the
  above

7
800 Pound Gorilla
Microsoft, Proprietary Systems and Bundling

• Myth
• Microsofts claims to provide cheaper and
  simpler tools
• Reality
• Few Technological Advantages
• Stifle Innovation, Kill Viable Markets

Microsoft Tactics Serve to Eliminate
Rivals Embrace, Extend, Extinguish
8
The Impact of Bundling

• Preclusion of non-Microsoft Products
• Inhibits the rise of middleware
• Force Markets to Choose Homogeneity over
  Hetrogeneity
• Examples
• Outlook Express/Outlook
• FrontPage Express/FrontPage

9
Outlook Express

• Why is email integrated?
• Gives Microsoft Two Key Benefits
• Eliminates Competition and promotes sales of
  Outlook
• Requires other MS products for full functionality

10
FrontPage Express

• Components are dependent on MS Internet
  Information Server (IIS)
• Embeds Special Directories and Metadata
• Use of FrontPage-specific capabilities requires
  Customization of Non-Microsoft Servers
• No Customization needed with Windows 2000 server
  and FrontPageInterdependencies between the two
  programs

11
Interdependencies

• Interdependencies between FrontPage and Internet
  Information Server
• Result Microsoft Dominates Web Authoring
  Software and drives Windows Server sales

• DHTML

• Microsoft Bundled Previously Available Programs
  To Gain Market Share

12
Recent Microsoft Activities

• Bundle Windows Media Player (WMP)
• Digital Media is the Next Big Thing
• Attempt to repeat browser-war with WMP
• Degrades quality of popular music format MP3
• Early reports indicate Windows XP wont work well
  with other MP3 encoders

13
Recent Microsoft Activities

• Hailstorm
• Microsoft to be gatekeeper of all information
  shared over the Internet
• Claims to be Open Standard
• MS track record not very good with claims of open
  standards

14
Steve Ballmer on .NET/HailStorm

• .NET is a set of tools and servers that lets
  them Microsofts sales force go out there and
  really make hay, shall we say, in the enterprise
  server business.
• We are taking elements of the user interface and
  programming model, and nicely and tightly
  integrating them, first into the client, and then
  into the server.

15
IDC expresses fears proprietary nature of
.NET/HailStorm

• What requires a leap of faith is that
  Microsoft expects its platforms to be successful
  because they offer compelling solutions, not
  because users are trapped on them due to
  proprietary lock-ins. Sounds great, but it is
  not clear how non-Microsoft client and server
  systems can truly fulfill a strong role in an
  .NET environment since they dont natively
  support Active Directory and cant run Visual
  Studio-generated applications or Microsoft
  infrastructure software emphasis added.

16
Passport is required, and is bolted to the
upcoming OS

• As a recent Merrill Lynch report states
• Hailstorm leverages Passport technology and is
  accessed through Microsofts Passport
  authentication service which itself is
  integrated into Windows XP.

17
CCIAs Role

• White Paper Windows 2000 Blueprint for
  Domination (http//www.ccianet.org/Blueprint2020
  00.pdf)
• Amicus Briefs in the United States
• Information to the European Commission