InformationWeek

December 20, 1999

The Microsoft Case: Owning Up And Moving On

By Lou Bertin

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y longtime friend and erstwhile colleague Bob Evans seems, lately, to find inspiration during periods of intense, self-inflicted pedal pain. For me, inspiration often strikes far less painfully and far more pleasurably while staring at the white backside of a West Highland terrier as we go about the business of our 6 a.m. perambulations.

So it was the other morning when the images of one William H. Gates III and one Peter Edward Rose flashed into my consciousness. Both have been much in the news lately, and while the now-avuncular Gates and the perpetually pugnacious Rose have little in common, they both find themselves in situations where they're doing their best to find a palatable solution to help remedy the consequences of their past behavior.

A few unsolicited words of advice to both: Curl your toes, grit your teeth and take your medicine . . . then get on with the business of doing what you do best.

That's far easier said then done, I know; Microsoft has shareholder issues and competitive issues to deal with. Rose, seemingly, is afflicted with an ailment in which one symptom is a deep-seated denial of the existence of the ailment itself.

Still, though, both would by far be best served by working with--and not against--the authorities in whose hands their fates reside.

Microsoft could certainly--and, it would seem, with some cause--pursue every avenue of appeal available to it. But with states' suits also pending, what would that yield Microsoft? From here, the answer is multiple, simultaneous legal actions that would be far more than a mere distraction and would provide no closure for Microsoft.

Unless and until Microsoft knows what the future rules of the game will be, how can it possibly go about the business of setting its future course? And the ability to plan for the future is abetted by working with the Justice Department and the states' attorneys general to cut a deal--quickly and as equitably as possible.

Microsoft should be devoting itself to getting the business of its past actions behind it and identifying what sanctions it faces as it goes forward. More important, the individuals, organizations, and institutions--both in the user and investor communities--that have placed a substantial stake in their own futures in Microsoft's hands through their investments in its products or securities will also know where they're headed.

As many have pointed out in recent weeks, Microsoft is, among other things, a remarkably stubborn company. Tenacity can be a wonderful attribute. So is the wisdom that leads one to conclude that when the fight has been fought, it has been lost--and it is now time to move on.

Stubbornness and tenacity also describe the other player in this little tale. A wonder to watch while he played the game, Rose has it within his grasp to return to the institution, baseball, that was his life.

He, like Microsoft, was found to have violated the rules of the game; the effects of his refusal to acknowledge that violation are instructive here, I think. Rose has steadfastly knocked his head chin-first into the walls of baseball's hierarchy, protesting his innocence even in the face of an exile he himself agreed to. Now this one-time great and fan favorite is reduced to an utterly unsympathetic sideshow who continues to try to draw attention to himself while making utterly incredible (and uncredible) claims that he has been treated unfairly.

An acknowledgment by Rose that he committed the cardinal sin against the game would go far to the game welcoming him back at some point. If Rose quit with his bogus appeals, he and the game could make their peace and, perhaps, fans would again be treated to the intensity and single-mindedness he brings to the business of winning.

So it should be for Microsoft. Swallow hard, settle up, and let us all get on with things.

Lou Bertin is an industry consultant. He can be reached at Lou.Bertin@gte.net.