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IE The Great Microsoft Blunder?

Posted by ScuttleMonkey on Tue Apr 25, 2006 02:38 PM
from the not-a-shining-example-of-engineering dept.
JordanL writes "Hot on the heels of the beta rollouts of IE 7, comes an editorial from John Dvorak declaring IE the biggest mistake Microsoft has ever made. From the article: 'All the work that has to go into keeping the browser afloat is time that could have been better spent on making Vista work as first advertised [...] If you were to put together a comprehensive profit-and-loss statement for IE, there would be a zero in the profits column and billions in the losses column--billions.'"

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[+] Microsoft Offers Phone Support For IE 7 195 comments
An anonymous reader writes "The BBC is running a short piece detailing Microsoft's newest step in testing Internet Explorer 7, which just went into Beta 2 yesterday. They're now offering free phone support to U.S., German, and Japanese users who try out the trial software." From the article: "'We believe that IE 7, even at this beta stage, is a significant improvement and we want as many people as possible to try it and use it,' said the browser development team in a post on its blog. 'IE 7 is feature complete and has been through significant compatibility and reliability testing. People (especially technology enthusiasts) will have a good experience with it,' continued the post. Microsoft said the new version addresses some problems affecting banking and news sites. It is also designed to be more secure than the current version, with built-in protection against malicious software and online phishing scams."
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  • Dvorak doesn't mention what is probably the greatest profit center related to IE: MSN.com. It's highly unlikely that MSN.com would be the #3 search engine if it weren't for MSN being the default search engine for IE. It's rumored that Google averages 12 cents of revenue per query on google.com... if MSN makes even half of what Google does per query, we're talking about hundreds of millions of dollars per year in revenue. This recurring revenue stream is more than enough to justify an investment in a browser.

    Other possible revenue streams for Microsoft IE include toolbar buttons and bookmarks, as well as the licensing of Internet Explorer to AOL and other companies to use as their default browser. Whether IE is profitable or not is still a mystery, but I definitely wouldn't say it has been a zero for Microsoft.
    • Dvorak doesn't understand business. IE is a loss leader. You give out IE in order to get other stuff back. This is the kind of thing we live with all the time in marketing. Our department always "loses" money, but without our department, the business wouldn't have any customers... so are we a money sink? Dvorak, apparently, would say yes.
      [ Parent ]
      • Re:Definitely not 0 profit... (Score:5, Insightful)

        by QuietLagoon (813062) on Tuesday April 25 2006, @02:55PM (#15199555)
        IE is a loss leader. You give out IE in order to get other stuff back.

        Microsoft bundles IE with Windows to leverage Windows' monopoly to gain marketshare for IE. Once IE has high marketshare, then Microsoft can control indirectly the website developers. Have you ever noticed how many websites are written to accommodate the bugs in IE?

        [ Parent ]
        • by diersing (679767) <gdiersing@@@gmail...com> on Tuesday April 25 2006, @03:02PM (#15199619)
          "the bugs in IE?"

          Features, man, they're FEATURES!!

          [ Parent ]
          • Re:Definitely not 0 profit... by 4D6963 (Score:1) Tuesday April 25 2006, @10:08PM
          • Re:Definitely not 0 profit... (Score:5, Insightful)

            by kimvette (919543) on Tuesday April 25 2006, @04:08PM (#15200260)
            (http://kim.biyn.com/)
            From that site: "The real role of extensions is to add frivolous non-features to a browser, and in doing so provide a scape-goat for blame when the browser is at fault."


            So, the tab mix plus toolbar adds frivilous non-features? The ability to reorder tabs, or "un-close" tabs should one mistakenly close the wrong one, and the ability to lock a tab in place are all non-features?

            Likewise: the web developer adds other frivilous non-features: one can resize the browser window to a specific size, clear HTTP authentication, clear the cache, clear history, outline any given element type, validate HTML against standards, display HTTP headers (basically, the HTTP response code and other server information), display element metadata, highlight broken images (broken images are not always readily apparant), modify CSS on the fly, disable certain standard browser features, and so forth. Yeah, frivilous non-features, most of which are absolutely NO help at all in debugging web applications and web sites in general. Useless non-feature, I'll give you that! ;)

            User agent switcher: can be used to spoof MSIE or Safari in order to make Firefox work with banks and ecommerce sites which have been hard-coded to expect one of those two browsers, despite being 100% compatible with Firefox. Yep, another useless non-feature.

            DOM Inspector: an extension which adds the non-feature of being able to browse the document object model. It's not as though you actually need to know how address an element in order to manipulate it using Javascript. Yes, folks, another frivilous non-feature brought to you courtesy of a useless Firefox extension!

            Colorzilla: a color picker which is obviously not useful at all for web developers.

            Have fun slamming the Mozilla team, but check the above before spreading the FUD above. You should quit wasting time spreading FUD, check your facts, and criticise the Firefox folks over legitimate issues.

            katse(at)biyn(dot)com
            [ Parent ]
          • Re:Definitely not 0 profit... by JAppi (Score:1) Tuesday April 25 2006, @05:45PM
            • 1 reply beneath your current threshold.
          • 3 replies beneath your current threshold.
        • Re:Definitely not 0 profit... by linvir (Score:1) Tuesday April 25 2006, @03:02PM
        • Re:Definitely not 0 profit? (Score:5, Insightful)

          by Anonymous Coward on Tuesday April 25 2006, @03:23PM (#15199801)
          But everything they get with this loss leader could be obtained just as easily by bundling someone else's browser and forcing the defaults. Other companies built search engines and ISP businesses without developing their own browser. I can be done. In fact, others are currently doing it better than MS.

          Dvorak is right: the expense of IE development could have been spent elsewhere, and MS would be none the worse off if they bundled somebody else's browser. Actually, Spyglass WAS somebody else's browser -- MS just got carried away with modifications. On the other hand, there is some Monday morning quarterbacking going on here. MS tried to "embrace and extend" the Internet. That approach works great when you have only incomplete standards and some room to maneuver. But nobody needed MS to "extend" HTTP.

          If MS knew how the world would evolve, they would never have bothered with IE. But nobody knew for sure at the time. The early browsers were resource-intensive by the standards of the day; they were designed for X-windows workstations. I can understand why MS would want to get something light enough to run on typical PC hardware. The early versions of Mosaic for Windows required Win32S and more memory than most people had. Netscape was better, but there was still plenty of room for improvement. Besides, just about every product MS ever created had to displace an entrenched competitor in order to survive. They must have thought IE would do the same -- even if they had to give it away.

          I run Windows XP Pro. Occasionally I get stuck running IE when I have to visit a retarded website that requires it. The default settings of MSN and the toolbar links lasted about 90 seconds after the first boot. I never signed up for any service because of anything IE did. MS additional profit by give me IE: $0.00. Yet their reputation for security and stability lives in infamy, thanks largely to IE and ActiveX plugins that let spyware and viruses play right through.
          [ Parent ]
        • Re:Definitely not 0 profit... by 70Bang (Score:3) Tuesday April 25 2006, @06:01PM
        • Microsoft bundles IE with Windows to leverage Windows' monopoly to gain marketshare for IE. Once IE has high marketshare, then Microsoft can control indirectly the website developers. Have you ever noticed how many websites are written to accommodate the bugs in IE?

          I'd like to see M$ own up to such a strategy because it's against the law. It may be true and they have been convicted of it, but they had better not admit to it.

          Dorvak's accusation forces M$ to admit anti-competitive practices or lose face on Wall Street. The second rate nature of both their browser and OS are now apparent. The only way to justify continued profits in the face of superior and less expensive competitors is to promise monopoly rents. Investors should be aware in either case. A company that screws it's customers is not much better to it's employees or investors.

          [ Parent ]
        • Re:Definitely not 0 profit... (Score:5, Insightful)

          by Eskarel (565631) on Tuesday April 25 2006, @07:25PM (#15201549)
          Microsoft bundles IE with Windows because you have to put some sort of web browser there and it's cheaper in the long run for them to make their own that to be reliant on a third party for such a vital component.

          In order for the general consumer to be able to make the choice between available free and non free web browsers, something has to be bundled with Windows to allow them to obtain whatever they choose.

          The fact that the average consumer will quite happily sit with IE because it's already there isn't Microsofts fault.

          [ Parent ]
        • 1 reply beneath your current threshold.
      • Re:Definitely not 0 profit... by ottothecow (Score:3) Tuesday April 25 2006, @03:00PM
      • Re:Definitely not 0 profit... by Pig Hogger (Score:3) Tuesday April 25 2006, @03:12PM
        • Re:Definitely not 0 profit... (Score:4, Interesting)

          Dvorak doesn't understand business.

          Marketoïds do not understand the *REAL* universe, the one one that's governed by physical laws and logic.

          See, that's where you're an idiot. (I was going to just say wrong, but it doesn't express how I feel very well.) Marketing is all about logic. One of the key datums in marketing is that people make decisions based on emotion, not on logic. Oh sure, some people develop a logical system for evaluating purchases and then stick to it zealously, which allows them to make logical decisions, but most people vote for the better-looking candidate and buy the car that looks fast, regardless of actual suitability.

          Marketing exists in the really real world, not your slashdot fantasy world. Actually, it exists here too, if you don't have adblock or something. And it wouldn't exist here if it didn't work to some degree.

          Logic dictates that Microsoft is getting something out of maintaining IE.

          P.S. I work in a marketing department but I'm a longtime and very dedicated computer geek. Look at the number of /. posts I've made if you don't believe me :P

          [ Parent ]
          • Re:Definitely not 0 profit... by trixillion (Score:2) Tuesday April 25 2006, @06:00PM
          • Grammar Nazi by Phroggy (Score:1) Tuesday April 25 2006, @08:59PM
            • Re:Grammar Nazi by frederickroyceperez (Score:1) Wednesday April 26 2006, @09:05AM
          • Marketing has **FUCK-ALL** to do with logic. It only plays people like some people play the piano.

            If someone wants to sell some shit, and they know they can influence people, and their business is about making money, then using marketing is a logical decision.

            It makes people do stupid things, like buy crap they don't need and fatten the bourgeois who peddle the made-by-slave-labour-in-China shit.

            It doesn't make anyone do anything. It puts notions in the heads of the unconscious. Propaganda was the subject of my middle school english class, and ever since I've consciously examined every advertisement I don't immediately dismiss, looking for their methods and motivations. It doesn't mean I'm immune to marketing, but I am much more resistant. (Also, I think most geeks are very specification-oriented, and so they are less vulnerable to marketing in general.)

            Like religion, marketing serves no useful purpose in life, and this is why marketers should be retroactively aborted.

            Come do it if you can.

            But more cogently, it serves to stimulate the economy. And without marketing, no one would ever sell anything anywhere but locally, so it also enables the economy.

            But you seem to be defending marketoids, so you must either be one of them,

            I have a supporting role in a marketing department - I query the database. I also do the website. Guess what? Websites are marketing, if they're associated with a business or product. I guess businesses and products shouldn't have webpages, huh?

            or worse, you're one of those slimy bourgeois who use their services to peddle your useless crap (it must be useless, because if it was useful, it would sell itself).

            Riiiiight. It would sell itself to people who might not even be aware that it exists? Marketing is about more than just convincing people that they need something that they have no use for. It's also about getting the message out about your products so that people who already have a use for what you're selling have an opportunity to find out about it, and then possibly buy it from you.

            You are a classic example of why some people shouldn't be allowed to think on their own - you don't actually complete the thought.

            [ Parent ]
          • Re:Definitely not 0 profit... by egarland (Score:2) Wednesday April 26 2006, @09:20AM
          • 1 reply beneath your current threshold.
        • MOD PARENT UP by albyrne5 (Score:1) Wednesday April 26 2006, @06:44AM
        • 1 reply beneath your current threshold.
      • Re:Definitely not 0 profit... by MrAnnoyanceToYou (Score:2) Tuesday April 25 2006, @03:20PM
      • Re:Definitely not 0 profit... by SuperRob (Score:2) Tuesday April 25 2006, @03:42PM
      • Re:Definitely not 0 profit... (Score:5, Insightful)

        by Midnight Thunder (17205) on Tuesday April 25 2006, @03:54PM (#15200137)
        (http://slashdot.org/ | Last Journal: Saturday February 05 2005, @03:50AM)
        Dvorak doesn't understand business. IE is a loss leader. You give out IE in order to get other stuff back

        Also chances are the IE development team are completely separate to the Vista one, and have a different skill set. By developing IE, Microsoft has an HTML engine that suits their needs, without having to rely on some third-party. If you look around Windows XP, you will soon realise how much actually relies on that engine.

        The problems with Vista are probably bad management and trying to do too much in one go. If you look at one of the competitors, Apple, then you will see that they bring things out in managable increments. Sure it is $120 a year, but at least it is available and out there.
        [ Parent ]
      • Re:Definitely not 0 profit... by DrXym (Score:2) Tuesday April 25 2006, @04:05PM
      • Re:Definitely not 0 profit... by Hoi Polloi (Score:2) Tuesday April 25 2006, @04:41PM
      • Re:Definitely not 0 profit... by Anonymous Coward (Score:1) Tuesday April 25 2006, @05:24PM
      • Re:Definitely not 0 profit... by rapidweather (Score:2) Tuesday April 25 2006, @08:09PM
      • 2 replies beneath your current threshold.
    • Re:Definitely not 0 profit... by Anonymous Coward (Score:2) Tuesday April 25 2006, @02:49PM
    • Re:Definitely not 0 profit... (Score:5, Insightful)

      by adolfojp (730818) on Tuesday April 25 2006, @02:49PM (#15199491)
      (http://myspace.com/adolfojp)
      MSN could be the default search engine of any browser that Microsoft decided to bundle.

      Opera uses Google as a default search engine because of a smart bussiness deal.

      MS could easily do the same.
      [ Parent ]
    • I don't know. I mean, if MS did bundle another browser, they could set that bundled browser to MSN.com, and reap all the same profits. It would almost have to be expected that they would. In which case, they're wasting money on IE.

      The biggest problem with IE is that it is linked to the OS, which is why security exploits in IE are the biggest headache for microsoft. Hell, I love Apache. I view it as pretty secure. But there is no way in hell I'd pick up an OS where Apache was an inextricable part of the kernel. The very idea is absurd...Apache touches the internet, therefore, it is a security problem. End of story. IE touches the internet, therefore it is a security problem. Firefox, Opera, it doesn't matter. Burglars couldn't get into your house if you had no doors or windows.

      I think Dvorak is 100% correct (first time for me)...If they used any other browser, they could lay half their security problems at it's feet. They could point the finger, and shake their heads, and talk about how secure their system is and how, if they built a browser, it would be completely secure and oh-so-functional. Instead they look awful, and their browser is a technological fossil.
      [ Parent ]
    • Re:Definitely not 0 profit... by f0dder (Score:1) Tuesday April 25 2006, @02:53PM
    • Re:Definitely not 0 profit... (Score:4, Insightful)

      by jacksonj04 (800021) <nick@tn-uk.net> on Tuesday April 25 2006, @03:19PM (#15199761)
      (http://nick.tn-uk.net/)
      Dvorak doesn't seem to realise that the IE development team and the Vista development team are different people. Yes, they work together on some things, but that's like saying GIMP is unnecessary, the developers' time could be better spent on Konqueror.
      [ Parent ]
    • Re:Definitely not 0 profit... by pulse2600 (Score:2) Tuesday April 25 2006, @03:20PM
    • Developers! Developers! Developers! by NineNine (Score:2) Tuesday April 25 2006, @03:30PM
    • Re:Definitely not 0 profit... by kinnell (Score:2) Tuesday April 25 2006, @04:07PM
    • Re:Definitely not 0 profit... by DrWho520 (Score:2) Tuesday April 25 2006, @04:23PM
    • Dvorak: why do we even care by Chazman (Score:2) Tuesday April 25 2006, @05:13PM
    • Re:Definitely not 0 profit... by aliquis (Score:2) Tuesday April 25 2006, @09:16PM
    • Re:Definitely not 0 profit... by vivtho (Score:1) Wednesday April 26 2006, @01:32AM
    • Re:Definitely not 0 profit... by kaiwai (Score:1) Wednesday April 26 2006, @02:39AM
    • 3 replies beneath your current threshold.
  • What's new? (Score:3, Insightful)

    by Flimzy (657419) on Tuesday April 25 2006, @02:40PM (#15199380)
    When has Microsoft ever delevered a product "as promised"?
    • Re:What's new? (Score:5, Insightful)

      by filesiteguy (695431) on Tuesday April 25 2006, @02:46PM (#15199446)
      (http://www.perfectreign.com/)
      LOL!!

      C'mon, didn't you ever use the TRS-80 BASIC interpreter? Didn't everyone? It worked great, and was a MS product, IIRC. I think it was Micro-Soft basic 4.5 from what I remember. :) It worked exactly as promised.

      I never used the BASIC compiler for the PC, but I think it was supposed to be pretty cool. Again it worked as promised. Of course, it was cloned from an IBM product, but then what's new?

      Oh, wait - you already said that.

      Nevermind.

      [ Parent ]
    • Re:What's new? by Foofoobar (Score:2) Tuesday April 25 2006, @02:54PM
      • Underdeliver by hackwrench (Score:1) Tuesday April 25 2006, @03:08PM
      • Re:What's new? by abradsn (Score:2) Tuesday April 25 2006, @03:14PM
        • Re:What's new? by Foofoobar (Score:3) Tuesday April 25 2006, @03:18PM
          • Re:What's new? by James_Aguilar (Score:2) Tuesday April 25 2006, @03:46PM
          • Re:What's new? by Ohreally_factor (Score:2) Wednesday April 26 2006, @12:14AM
        • Re:What's new? by booch (Score:2) Tuesday April 25 2006, @03:19PM
      • Re:What's new? by 808140 (Score:2) Tuesday April 25 2006, @06:49PM
      • 1 reply beneath your current threshold.
    • Re:What's new? by EnsilZah (Score:1) Tuesday April 25 2006, @03:16PM
  • As usual, Dvorak is on crack.

    I'm not sure what he means by biggest, but microsoft's stupidist blunder was Bob [guidebookgallery.org] and its most expensive blunder was the Cairo project [computerworld.com] (Cairo was later renamed and one of its most important element, OFS, is still nowhere in sight).

    Internet exporer was not so much of a blunder as an expensive way to kill off Netscape (they were a much bigger threat then Dvorak makes out.

    (the OT part) Still, at least Microsoft Bob was not a completely wasted effort - after all, you still have Rover the retriever [guidebookgallery.org] to help you with searching in XP - and we all know that was worth waiting 10 years for...
    • Re:Microsofts biggest blunder? (Score:5, Insightful)

      by arivanov (12034) on Tuesday April 25 2006, @02:54PM (#15199540)
      (http://www.sigsegv.cx/)
      As usual, Dvorak is on crack. And he is not sharing which is a crime.

      IE is just a shell around libraries which do parsing of content and rendering. These are used throughout Windows including Outlook, parts of Office, the Windows Update infrastructure, etc. These have to be accounted for when making a loss/profit assessment. If it was not for IE, Outlook would have never reached its near universal penetration. Where Outlook and IE go, Office, Exchange, Departamental intranet servers on IIS with HTML written by people on crack follow. All of these depend on IE in one form or another. All of these are commercial products and cost a pretty penny.

      IE may be a loss, but it is a classic example of a well executed loss leader. If it was not for IE most of the remaining MSFT clutter would have had to be considerably better quality and less expensive to actually sell.

      [ Parent ]