Java s Threat to Microsoft


Java’s Threat to Microsoft

Microsoft’s Internet Explorer dominates the browser market. Although it appears that Microsoft gives Internet Explorer away for free, it is actually a tremendous source of profit for Microsoft. First, Microsoft bundles Internet Explorer with its operating system. This bundling makes the operating system more valuable to consumers and consequently raises the price that Microsoft can charge for Windows. Microsoft also profits from having special knowledge about Internet Explorer’s workings.

Many types of Internet application software are written to be used by consumers running Internet Explorer. The greater knowledge a company has about how Internet Explorer works, the better they can make their application software. Since Microsoft knows more about Internet Explorer than any other company, Microsoft has an advantage when writing application software for its browser.

Java poses a threat to Internet Explorer’s network externalities. Java is an Internet-friendly program that runs on top of Internet browsers and operating systems, and it was designed to work with all major types of computers. The idea behind Java is that programmers could write software specifically for it, and then these programs could run on any computer, even if the computer was not running Microsoft software. If Java, which was created by Sun Microsystems, fulfills its potential, then it, not Microsoft, will reap the benefits from network externalities. If everyone used Java, then you wouldn’t need to own Internet Explorer or even a Microsoft operating system to use most Internet software applications. As of this writing, however, Java seems destined to become an important, not critical, Internet programming language and consequently network externalities will likely be a continuing source of riches for Microsoft.




Game Theory at Work(c) How to Use Game Theory to Outthink and Outmaneuver Your Competition
Game Theory at Work(c) How to Use Game Theory to Outthink and Outmaneuver Your Competition
ISBN: N/A
EAN: N/A
Year: 2005
Pages: 260

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