“Things are likely to get worse for Microsoft as dark clouds
continue to gather over the courtroom. On the other hand, if the
software titan were to take its medicine and put the case to rest
tomorrow — even with a tough breakup written on the prescription
pad — then the company could get back to its real business, which
as Bill Gates likes to say so often, is innovation.”
“I don’t see a breakup taking down Microsoft. Slowing it down,
maybe, but some of the wind has already been taken out of its
sails. Even though Microsoft is a monopoly, the company does not
totally dominate the computer market — as evidenced by a nibble
here and there from Linux, and the giant’s uphill battle against
Palm Pilot in the handheld market arena, to mention a couple of
examples.”
“So what should Microsoft do? Drop the appeal. Swallow hard
and agree to work out a suitable plan for breaking up the
empire. Clearly, Gates does not want to see the house he built
dismantled, and therefore, Microsoft will probably take the long
road. … Microsoft can certainly afford the appeal, but until the
case is resolved, investors will continue to jump ship, employees
will search for greener pastures, and consumers may opt to buy
alternatives to software developed by a company with a cloudy
future.”