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August 2, 1999

Behind The Numbers:
Microsoft's Role: Hero Or Villain?

bar chart t's part of the American psyche to root for the underdog. Whenever some person, institution, or company gets too powerful, either the public or the media seems to thumb its nose at the success that's an ingrained part of the American dream.

For example, take Microsoft--the largest and most profitable software company in the world. While many consumers believe Bill Gates & Co. may have become too big for its britches, IT professionals have generally been more sympathetic.

Still, many IT managers who depend on Microsoft products to run their operations seem to want Microsoft to receive a comeuppance. A new InformationWeek Research survey of 300 IT managers shows Microsoft's business customers hold mixed opinions about the company and its business practices. While they have a very favorable overall impression of Microsoft, a majority also say the company is arrogant.

While 35% say Microsoft understands their business needs, another 33% say it fails to understand those needs. And while 49% say they purchase Microsoft products because they're the best, 38% insist they're forced to purchase Microsoft products because of a lack of alternatives. These aren't just any IT managers, by the way; they're heavy users of Microsoft products: More than eight in 10 widely deploy NT Server, Office, Windows 95, and Internet Explorer.

What's your perception of Microsoft? What would you decide to do if you were the judge in the antitrust case? Let us know at the E-mail address below.

John Eckhouse
ManagingEditor/Research
jeckhous@cmp.com

This week in Behind The Numbers:

Not Much Change In Responsiveness

Whither Windows 2000?

Microsoft's Reputation

IT Jury's Verdict

Not Much Change In Responsiveness

Despite three well-publicized lawsuits and increased competition from dot-com companies, Microsoft hasn't altered its attitude toward customers in the past year.

Slightly more than three in four IT managers haven't noticed a change in Microsoft's responsiveness to their needs in the past 12 months. But Microsoft is clearly working harder to satisfy big corporate buyers. About one in four IT managers at the country's largest enterprises say Microsoft is doing a better job serving them.\

Whither Windows 2000?

Microsoft is counting on huge wins in both business adoption and revenue for its forthcoming Windows 2000 operating system. But InformationWeek Research indicates that might not occur immediately. A whopping 45% of those surveyed--most of whom are already dedicated Microsoft customers--don't plan to widely deploy either the desktop or server version of the new operating system.

Microsoft hasn't succeeded in convincing many potential customers of the product's value. Only 13% say they're confident Windows 2000 will lower their cost of PC ownership, as Microsoft has stated, while 66% say it won't happen, and 21% aren't sure.

Microsoft's Reputation

Like virtually everyone else these days, Microsoft wants to be regarded as a major supplier of E-commerce products. It's done a good job of starting to cement that reputation, although it still has a ways to go. Only 12% of IT managers working on E-commerce regard Microsoft as a top-notch vendor in this market.

Overall, however, IT managers say they're building stronger ties to Microsoft. One-third say Microsoft has become more strategically important to their company in the past 12 months. Nearly two-thirds say the company's strategic importance is unchanged, and just 4% say it's diminished.

IT Jury's Verdict

It's a good thing Microsoft doesn't have a jury of IT peers in its antitrust case. Less than a quarter of IT managers would vote for acquittal. Another 16% would opt for minor punishment, such as a warning or a small fine.

The majority of those surveyed say the court should do something fairly drastic, such as breaking Microsoft into multiple companies, imposing a huge fine, or riding herd on its software licensing deals. Apparently, Microsoft is the epitome of the company IT managers love to hate: They can't live without it--but can't live with it the way it is now.

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