|
Off
To A Good Start
In 1993, when the Internet was just
beginning to grow popular, the default
navigator was good old Mosaic. The choice
was narrow at the time and Microsoft
wasn't even interested in the Internet
at all. The main attraction at the time
was Internet surf, although people still
talked about Gopher, Veronica and the
news and even about the IRC (Internet
relay chat). Then came the celebrated
Netscape 1.0, which became very rapidly
popular with the public. It all went
so fast that in 1994 on the A 40, in
the West of London, one could see billboards
promising us a brighter future : "today
stuck on the A 40, tomorrow on the information
superhighway!". (I wonder what
the car drivers who are still stuck
on the A 40 everyday in 2002 have to
think about it?)
Everything went well for Netscape and
its creators (Jim Clark and Mark Andreesen),
and the Netscape brand was the symbol
of the whole Internet. Let's be honest,
Netscape's 80 percent market share was
a quasi-monopoly. And at that time,
nobody raged against that monopoly.
Microsoft:
Are They Really Responsible?
In 1996 Netscape went into the intranet
market with its range of servers and
software (named Suite Spot in October
1996). Netscape's future promised to
be bright. Microsoft only started to
move during the summer of 1996, ie when
Internet Explorer 4.0 began to ship.
Internet Explorer was Microsoft's new
navigator and it was a true competitor
of Netscape's who were at that time
dominating the market with Netscape
navigator 3. Before that date, Bill
Gates had declared that the Internet
wasn't quite strategic for Microsoft
(1995). The launch of Internet Explorer
4.0 in 1996 was to change all that.
So, how can we explain Netscape's current
position (see statistics per below)
whereas they were a pioneer of the navigator
market right from the outset?
Around us, fingers point almost unanimously
at Microsoft and its monopoly because
of the delivery of Internet Explorer
4.0 as a standard feature of Windows
95 and -- later -- Windows 98. However,
the reasons for this failure may be
a little bit more complex than that.
Let us delve into the history and carry
out the post-mortem of the Netscape
flop.
1994:
Netscape Refuses to Cooperate with Microsoft
The highly hyped Microsoft trial unfortunately
can hide the forest for the trees. I
wish to remind the reader that in 1994,
Netscape did refuse to cooperate with
Microsoft when they were asked to embed
their navigator to
Windows 95!
When Netscape refused to work for Bill
Gates, they also declined the opportunity
to embed their software with the world's
most popular operating system and therefore
maintain their leadership. Netscape
refused this deal on the grounds that
they did not want to hand over the technology
to Microsoft and that Microsoft's proposal
was grossly undervalued. However, this
decision proved unlucky for barely a
year later, Microsoft delivered the
navigator that was to deal such a severe
blow to Netscape.
Microsoft
Signs Deals with ISPs and Manufacturers
Microsoft went into some very extensive
partnerships with manufacturers who
installed Internet Explorer on their
equipment by default; this is actually
what upsets so many people. But they
also signed deals with many ISPs (Internet
service providers). Just imagine how
many copies of Microsoft Explorer AOL
(we will talk about AOL again a little
bit later) has delivered together with
its installation kits! These installation
kits are at the heart of the problem,
that is to say in greater proportion
than the preinstalled versions of Internet
Explorer 4.0, at least when we talk
about the consumer market (we will see
later that the statistics for B2B users
are more favourable to Netscape). Indeed,
installation kits were a branding issue
for ISPs. Only advanced users (therefore
a minority) were capable of configuring
their Internet connections without using
the co-branded installation kits.
Another very common explanation is
that Microsoft's navigator was delivered
for free whereas Netscape's had to be
paid for. However, I will not keep this
assumption for almost everyone was free
to download Netscape's software. Besides
we will house to believe that this restriction
was applied systematically to professional
buyers and that wasn't true either.
Low
Switching Habits
A 1997 study that was carried out by
GVU shows that users, whether they be
European or American, very seldom change
navigators more than once. Once a navigator
is installed and the user is getting
used to it, it's very difficult for
him/her to get used to another one.
Netscape did not succeed very well in
signing partnerships and deals to embed
its navigator with ISPs' installation
kits, if one excepts IBM and Sprint.

The
Netscape Boys Become Paranoid
Another reason that could explain the
Netscape fiasco is the high level of
paranoia which developed within the
company when it came to its relationship
with its main challenger. Netscape's
engineers and managers were so possessed
by the fear that Microsoft might abuse
its dominant position on the market
of office products and PC operating
software, that they ended up forgetting
to improve their own product and differentiate
from Microsoft through quality and innovation.
At the end of the nineties, Netscape's
incantations -- often reproduced and
amplified by SUN Microsystems - really
gave the impression that they had all
lost their head off.
I do remember an International seminar
in 1996 in Brussels which owed nothing
to George
Orwell's 1984 hate weeks, when video
clips were used to make Bill Gates and
his firm appear as the devil incarnate.
The aim was not to be positive or prove
that Java was bringing real technical
benefits for its Clients, the enterprise
and the development of the Internet.
The real objective was to spread an
ideology of victimisation with regards
to the dominant supplier of this market.
This paranoia made Netscape lose sight
of its own business development objectives
and the firm started to fall.
Netscape
Neglects its New Products and Loses
its Experts and Visionaries
This is how Netscape's version 5.0
ended up being a total failure, so much
so that it was never actually launched.
And this is why version 4.X survived
for years on end until version 4.7 came
in, almost stabilised. As a matter of
fact, Netscape did not produce any software
innovation from 1999 until 2002, that
is to say when the almost bearable Netscape
6.2 was officially released.
But the ultimate fiasco was this version
6.0 which only a happy few were able
to download let alone install on their
hard disks. last but not least, what
must we think of Netscape's initial
"thin client" strategy? Far
from differentiating from Microsoft,
the new software produced by the Mountain
View company became more and more unwieldy
and bulky, and even slower than its
Microsoft competitor.
Download sizes: Paul Sciotino benchmarked the Netscape
and Microsoft downloads.
|