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Comes Antitrust: Microsoft Shows Its Fear of GNU/Linux and StarOffice (OOo)

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From:    Pat Fox
Sent:    Friday, November 08, 2002 4:16 PM
To:    Bill Veghte; Brian Valentine; Peter Houston; Michele Freed
Cc:    Rogers Weed
Subject:    I a little concerned - Research Board desktop content

Importance:    High

Per the meeting yesterday, I've worked up a couple of slides for the desktop
that are fairly hard hitting. (attached).

My concern: on the desktop side, we've been operating at about DefCon 2 (to use
a politically incorrect, national defense analogy) because we don't think
customers or partners and the overall business situation yet calls for a more
public or proactive comparison on the desktop.  I think the RB could
implicitly push us up to DefCon 4 and I want to make sure we've considered the
implications.

My assumption:
    * the RB will use the slides in their analysis
    * the content will become public at some point
    * we will need to publicize the studies that underly the content - the
eTesting Labs studies, etc. Much of the content is available today for
field/reactive use only.  We'll need the web sites, etc to organize and
explain this in a way that isn't alienating to customers and partners.
*    we need to explain why we're being so public and proactive at this time.

My concern is that we're not ready to do the above yet, both operationally (ie
the web sites, the PR plans), nor have we said the customer environment is
ready for this.

Options:
    1. refute my assumptions (please!)
    2. continue POR and get ready to react as quickly as possible - we have a
month before the actual RB visits and when this would likely become public
    3. water down the desktop content and risk that the RB won't fully consider
all the issues.

Net is, we have more to lose on the desktop and I want to make sure we've
thought through the issues.

Thx,
Pat

Plaintiff's Exhibit
8604
Comes vs Microsoft

HS-CC-Sun 00000:1.220094
HIGHLY CONFIDENTIAL


(Contents of "RB InfoWorker Desktop PF.ppt" attachment - as text)

Information Worker Desktop
Comparing Windows XP and Office XP to Linux and StarOffice

Windows XP and Office XP
Most Productive, Integrated Desktop
* Tight integration, comprehensively tested
* Best user experience, best productivity
    - Office XP users had higher task completion rate vs StarOffice users - 93%
vs 80%
    - Office XP users completed tasks in 1/3 time
    - MS enables a consistent UI across work PCs, laptops, home PCs, PDAs,
Tablet PCs, and SmartPhones
* Most integrated and comprehensive platform
    - Enables powerful and productive user experiences
    - Ex: Tablet PC w/ pen input, Ink data types, zero config wireless, range
of hw offerings and configurations
    - Ex: Office XP Smart Tags enable rich analysis and integration with
backend/LOB applications
    - Ex: Windows XP unicode support enables easier international collaboration
    - Ex: Windows Media 9 series and Media Center PCs Superior online learning,
digital media
* Windows and Office enable greater end user productivity, which returns
greater business value to the organization

Linux and StarOffice
Lower Productivity Components
* Independently developed components
* Inconsistent user interface across system components

"I hope to see continued work on interoperability and integration between the
various Linux desktop components Mozilla, OpenOffice, GNOME, and KDE Unifying
the MIME subsystem is one task that Red Hat can't take on alone, but we are
actively working with community developers to find a solution..." -Red Hat
Corp Developer

* Users take longer to complete tasks
* Users are less successful in completing common tasks
* Requires heavy customization & manual integration
* Required significant end user retraining
* Requires duplicate or significantly more costly helpdesk infrastructure
* Lower overall business value   

Windows XP and Office XP offer richer, more integrated experiences
    http://www.microsoft.com/windowsxp/tabletpc/default.asp
    http://www.microsoft.com/windowsxp/mediacenter/evaluation/tours/default.asp
    http://www.microsoft.com/mobile/pocketpc/default.asp
    http://www.microsoft.com/mobile/smartphone/default.asp


Interview: Havoc Pennington
    Systems Developer, Desktop/UI Tech Lead at RedHat
http://www.redhat.com/advise/ask.html
"Q: What advances in Linux desktop technology can we expect to see in future
releases? A: Printing and multimedia are big areas that we want to tackle. And
we want to be looking at improving the security and manageability of Linux
desktops -- meeting the needs of administrators who are looking after a few
hundred (or a few thousand) client workstations.

I hope to see continued work on interoperability and integration between the
various Linux desktop components. Mozilla, OpenOffice, GNOME, and KDE Unifying
the MIME subsystem is one task that Red Hat can't take on alone, but we are
actively working with community developers to find a solution. There should be
one place to configure the applications and plugins for a given file type."

Microsoft Confidential 1

MS-CC-Sun 000001220095
HIGHLY CONFIDENTIAL

10/2/2003

Information Worker Desktop (cont'd)
Comparing Windows XP and Office XP to Linux and StarOffice

Windows XP and Office XP
Lower Total Cost, Better Overall Value
* WinXP IT deployment time is 57% less than Linux (eTesting Labs study)
* WinXP IT deployment success rate was 95% vs 65% for Linux (eTesting Labs
study)
* Documant sharing was much more successful with OfficeXP vs StarOffice with
<1% of documents having errors with Office and >35% having errors with
StarOffice (eTesting Labs study)
* WindowsXP has 35+% lower TCO than Linux (using Gartner model. In study of 2
Finnish city governments)
*Windows XP and Office XP have well-documented features for people with
disabilities
    - Voluntary Product Accessibility Templates available on
www.microsoft.com/enable/, meets US Govt Section 508 standards
    - Many applications and Assistive Technology addons available for people
with disabilities

* Windows and Office result in lower deployment and operational costs and
consequently lower TCO

Linux and StarOffice
Potentially lower acquisition cost, but higher total costs
* Higher Total Cost of Ownership
* Higher deployment costs
* Higher ongoing management costs
*Poor document conversion capabilities
* Significantly weaker capabilities for people with disabilities

* Linux and StarOffice result in higher Total Cost of Ownership

Better support for people with disabilities
    Meet US Govt Section 508 -- VPATs (Voluntary Product Accessibility
Template) for MS Prods:
    http://www.microsoft.com/usa/government/section508.asp
    www.rhat.com - NO VPATs available

Industry Analyst Discussion of Linux/StarOffice on the desktop:
    - Licensing cost < 1/3 of total cost when implementing new productivity
software
    - There are significant unforeseen doc conversion and training costs when
moving to StarOffice from Office
    - Significant costs due to IT labor and lost productivity

Ecosystem benefits around Windows and Office are significant.  Assume they will
be discussed in other section of presentation.

Microsoft Confidential  2

MS-CC-Sun 000001220096
HIGHLY CONFIDENTIAL
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