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Comes: Ballmer's Crime of Using "Bad App" to Crash Rival O/S

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A: Comes vs. Microsoft - exhibit px_0860, as text

    PLANTIFF’S EXHIBIT 860
    Comes v. Microsoft

    From jonl Wed Jul 24 23:42:44 1991
    To: cameronm
    Subject: Seybold report on office computing
    Date: Wed Apr 29 19:11:02 PDT 1992

    Date: Wed Jul 24 23:42:16 1991

    >From billg Wed Jul 24 10:51:31 1991
    To: jonl steveb
    Subject: Seybold report on office computing
    Cc: carls jeffr martyta mikehal paulma russw W-pamed
    Date: Wed Jul 24 10:51:16 1991

    This report highlights our failure to get our message out.

    It praises Os/2 2.0 endlessly using the charts from the IBM
    white papers. For example the chart showing windows giving you
    only 506k of memory and Os/2 giving you 620k.

    It praises the better windows than windows capability - including
    “one of the best attributes of windows applications run within
    Os/2 is the superior system intgrity. Should an application crash you
    can just closre the session and continue. No need to close down and
    restart. Performance is helped by Os/2 preemptive multitasking and
    the ability to share I/o. At the roll out bash in New York IBM
    demonstated the same windows application running on a Windows
    machine and on an Os/2 machine. Certainly there is no performance
    trade off for the greater stability offered by Os/2 2.0″

    In a section called Os/2 does it better he goes on to say:

    As an integrating enviroment Os/2 provides some nice enhancements
    over plain windows. First Os/2 2 can run both windows 2 and windows 3
    applications at the same time.

    Later we read:

    Os/2 2 is undoubtedly a splendid integration environment. Even with the
    early code wve see it does indeed run dos better than doas, windows
    better than windows and so on. With the new pricing it is difficult
    to think of a reason for not using Os/2 at the integrating environment.
    If you can get a better environment for the same amount of money as
    windows wouldnt you make the switch other factors such as hardware cost
    being equal?

    He reviews our strategy in a fairly negative way.

    x 547372
    CONFIDENTIAL

    WinMail 1.21 lynnra Wed Apr 29 18:57:00 1992

    Page: 120

    EXH 96 DATE 2/14/02
    WITNESS Silverberg

    —————— page break ————————

    I am sure I will get back some message about how steve will see these
    people and it will all be better. It wont be better. No one is taking
    responsibility for getting our message out broadly. Yes someone
    should call mike and sicuss this exact points but the customers will
    read what he has written. We should recognize we are loving this battle
    and we need a lot mor creativity to get on top of it.

    From w-clair1 Thu Jul 25 19:46:22 1991
    To: billg bradsi jimall jonl mikehal paulma richab russw scotto steveb
    Cc: billmi cameronm carls garygi julieg martyta mikemap rogersw w-clairl
    w-pamed
    Subject: SteveB press tour trip report (long mail)
    Date: Wed Apr 29 19:11:09 PDT 1992

    Date: Thu Jul 25 19:33:28 1991

    SteveB went on the road to see the top weeklies, industry
    analysts and business press this week to give our systems
    strategy. The meetings included demos of Windows 3.1 (pen and
    multimedia included), Windows NT, OS/2 2.0 including a
    performance comparison to Windows and a “bad app” that
    corrupted other applications and crashed the system. It was a
    very valuable trip and needs to be repeated by other MS
    executives throughout the next month so we hit all the
    publications and analysts.

    Summary:

    1. The feedback from the editors and analysts is that the
    Microsoft Windows-centric strategy is clear. Steve cleared
    away the cobwebs spun by IBM and our own formerly more
    convoluted messages on the roles of Windows vs OS/2.

    2. There is healthy skepticism about IBM’s ability to deliver
    what they promised in OS/2 2.0 and in IBM’s overall future
    strategy. Steve did a great job of explaining how IBM will
    have a very hard time delivering on the promise.

    3. However, many take a “wait and see” attitude toward the
    possibility of IBM success with OS/2 2.0. Common wisdom seems
    to be that some corporate accounts will go with OS/2
    regardless since it’s “blue” and that if they deliver a good
    product customers will be forced to chose it or Windows.

    4. The demos of OS/2 were excellent. Crashing the system had
    the intended effect–to FUD OS/2 2.0. People paid attention to
    this demo and were often surprised to our favor. Steve
    positioned it as –OS/2 is not “bad” but that from a

    X 547373
    CONFIDENTIAL

    WinMail 1.21 lynnra Wed Apr 29 18:57:00 1992

    Page: 121

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    performance and “robustness” standpoint, it is NOT better than
    Windows. We know the design point, we know what’s in it.
    Forrester Research is publishing a bulletin tomorrow that says
    “Ballmer exploded some “myths” about OS/2: It doesn’t run
    Windows applications presently, it’s not bullet proof and
    dependable–MS was able to demonstrate several instances of
    OS/2 crashing!

    5. Everyone asked us how Microsoft feels about the general
    “geopolitical” situation. We were questioned on how we viewed
    the Apple/IBM deal (Steve: I wouldn’t want the job as
    development manager for the mother of all operating systems),
    the Novell/DRI deal (Steve: there are several scenarios there-
    -not clear what they can do with this), the BillG memo (Steve:
    We did not leak it and it really caused me to spend time
    cleaning up fires). Several people told us Microsoft is more
    isolated now. Steve made the point that we have a good
    technical relationships with most of the companies that might
    be combative on a marketing front. Generally, the view is that
    the PC world is undergoing major shifts (albeit longer term)
    and whatever the resolution, Microsoft’s role will be in some
    way, major or minor, changed.

    6. The general agreement is that ISVs are not confused about
    what to develop for–Windows–regardless of the outcome of the
    OS/2 2.0/Windows horse race. We were told that Frank King
    said–I don’t have to worry about supporting OS/2 2.0 since
    IBM has promised Windows support. If they don’t do good
    Windows support, I’m still in great shape.

    7. The Windows NT demo went a long way toward proving that
    this technology is far along. Checking back, the feedback is
    that Windows NT was viewed as important for several reasons:

    o It’s far along
    o It’s Microsoft’s forward path, not OS/2 3.0
    o LAN Man will be supported on it
    o It is the ACE platform, not “OS/2 3.0″
    o The OS/2 subsystem for Windows NT is only for a small
    subset of customers that will need it.

    a. We discussed the state of the IBM relationship and made the
    point that in April, IBM made our path clear. Doug Cayne of
    Gartner said, Microsoft has taken off the kid gloves.

    Here is high-level summary of the meetings. Action items,
    details to be sent separately.

    X 547374
    CONFIDENTIAL

    WinMail 1.21 lynnra Wed Apr 29 10:57:00 1992,

    Page: 122

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    Business Press:

    Good meetings with Paul Carroll, Wall Street Journal, Evan
    Schwartz, Business Week, and John Marcoff, New York Times.
    Paul had several misconceptions that IBM had planted. He said
    that he is getting back into daily writing and appreciated the
    update. Evan is interested in spinning out the scenarios for
    the next ten years of the PC industry for their big story. He
    asked about Novell, IBM, object technology–what does it mean
    really. Marcoff had been to Boca–he said that it was really
    “disorganized” down there. He asked about the meeting between
    Scully and BillG–Steve said it was of no consequence. Marcoff
    said the industry strategy seems to be to “get Microsoft.” He
    said he buys the OS/2 scenario that Steve gave. He was curious
    if Microsoft and IBM are now “enemies.” Steve said no, but we
    truly compete and we don’t see much chance of change in
    current situation.

    Magazines:

    PC Week was lengthy. Paul Sherer asks very good questions
    about the strategy. Sam Whitmore was somewhat hostile. He
    demanded to know if he could talk to BillG about the
    Scully/BillG meeting and did not seem to believe Steve about
    the discussion the two had. PC Week is doing one story that
    will be inside the magazine. (The cover will have a scoop on
    Windows Word 2.0, a MS/Great Plains deal, the Microsoft
    analyst meeting). PC Week will continue to be skeptical of
    Microsoft.

    Computerworld was a good meeting. Paul Gillan and Tish asked
    the expected questions. Paul reiterated that he needs to get
    out to Microsoft in the next year to get a complete update.

    Infoworld. A good meeting, lots of editors were there.
    Questions were on our product strategy, geopolitical issues,
    how can Microsoft think it will beat IBM. They are doing a
    story for next week.

    CRN. They were briefed over the phone and will do a story,
    focused on Windows NT, and LAN Manager for NT.

    PC Computing. Good turnout from the editorial staff. Dale
    LeWallen will keep the staff straight on technical matters.
    The new executive editor, Ed Bott, was highly interested in
    our product plans and we can work with them for good coverage
    on Windows 3.1 and Windows NT.

    Analysts:

    X 547375
    CONFIDENTIAL

    WinMail 1.21 lynnra Wed Apr 29 18:57:00 1992

    Page: 123

    —————— page break ————————

    Gartner has been openly critical of IBM’s strategy. They told
    us they are on the outs with IBM as a result. However, they
    think it will take time to prove out who wins the desktop.

    Forrester said that Microsoft has not had such a clear
    strategy in 18 months and we impressed them with the data.
    They are putting out a bulletin tomorrow. This was prodictive.

    Dataquest and IDC had misconceptions that we cleared up. Nancy
    McSharry had 3 sets of projections for OS/2 (low, medium,
    high) that in the best case scenario showed OS/2 with 25%
    market share only by 1995. On unrelated matter, she told us
    she could not get Windows to run on her 386–we need to do
    this for her.

    Esther Dyson thinks MS is too big and slow to do good work;
    conversely she thinks that the Apple/IBM deal could result in
    good things. We should have her meet with Allchin to talk
    about objects etc.

    Jeff Tarter had an excellent meeting with Steve. This is the
    first time they had met. Steve did a good job of relating to
    Jeff’s focus. Jeff told us that for the first time he sees
    Windows offering things that the Mac cannot. He is highly
    skeptical of the Apple/IBM deal as well. We need to invite
    Jeff to the Windows strategy briefing in Boston–he likes to
    talk to small developers.

    From marlyla Fri Jul 26 09:38:12 1991
    To: cameronm
    Cc: w-clairl w-pamed
    Subject: RE: Stewart Alsop
    Date: Wed Apr 29 19:11:31 PDT 1992

    Date: Fri Jul 26 09:36:00 PDT 1991

    Sure do it.
    Also he is planning to be at MS the week
    of August 19th. You might want to
    invite him to drop by.

    Also, keep in mind that Steveb has a conservative
    approach to this issue. He is concerned that we
    not over-promise a great developer support program
    until we have proven that we can do a good job
    at it. So position your efforts as growing.

    X 547376
    CONFIDENTIAL

    WinMail 1.21 lynnra Wed April 29 18:57:00 1992
    Page: 124









________________________________________________
Comes vs. Microsoft - exhibit px_0797, as text

    PLAINTIFF’S
    EXHIBIT
    797
    Comes v. Microsoft

    | Compaq
    |
    | 12. Get Windows positioned as where the action/apps are:
    | Leverage the releases of 123/W and WP/W in any way
    | possible - the lack of a decent WP & 123 for OS/2 is a big
    | negative for OS/2, and positive for Windows. Is there
    | anyway we can really get this to work for Windows?
    | Personnally I would be willing to sacrifice Excel/Word a
    | little on this front.
    |
    | 13. Keep the ISVs loyal - sell Win architecture to them heavily.
    |
    | 14. Develope pro-active plan to sell Windows to the corporate
    | developers:
    | - Visual Basic focus in H2′CY91?
    | - Corporate Developers focus on Win32 and Win/NT in H1′CY91?
    |
    |
    |
    |

    #######################################################
    156
    >From bradsi Fri Jun 28 08:38:57 1991
    To: davidcol
    Subject: PM Bad App…
    Date: Fri Jun 28 08:38:56 1991

    | > From paulma Thu Jun 27 09:38:17 1991
    | To: bobmu bradsi carls jonl steveb
    | Subject: PM Bad App…
    | Cc: ericfo
    | Date Thu Jun 27 09:30:12 1991
    |
    | > From ericfo Thu Jun 27 09:27:07 1991
    | To: paulma
    | Subject: Re: One Bad App
    | Date: Thu Jun 27 09:28:30 1991
    |
    | I tested on 1.21, 1.3 and 2.0 and it hangs all systems equally well…
    |
    | | > From paulma Thu Jun 27 07:30:47 1991
    | | To: ericfo
    | | Subject: One Bad App
    | | Date: Thu Jun 27 07:30:08 1991
    | |
    | | OK, thx. I will come around.
    | |
    | | > From ericfo Wed Jun 26 19:59:16 1991

    EXH 18 Date 10/24/01
    WITNESS Maritz
    MARY W. MILLER

    MS 5062179
    CONFIDENTIAL

    ………….. ( page break ) ………….

    | | To: paulma
    | | Subject: One Bad App
    | | Date: Wed Jun 26 20:02:30 1991
    | |
    | | I have written a PM app that hangs the system (sometimes quite
graphically).
    | |
    | | You can take a look at it anytime, just let me know…
    | |
    | | Eric
    | |
    |

    #######################################################
    157
    From: bradsi Fri Jun 28 10:36:14 1991
    To: karlst lins
    Cc: philba
    Subject: Re: people etc
    Date: Fri Jun 28 10:36:10 1991

    You have nothing to worry about. If your people continue to do well,
    they will get promoted in time, make more money, and do good work.
    If they continue to perform at above average levels, they will
    continue to get above average ratings, etc.

    #######################################################
    158
    From: bradsi
    To: ericst
    Subject: Re: johnen
    Date: Fri Jun 28 10:38:27 1991

    excellent points. yes, improved test methodology is a key objective.

    #######################################################
    159
    From: bradsi Fri Jun 28 10:41:19 1991
    To: cameronm richab richt ruthannl w-clairl
    Cc: chrisp jonre w-connib w-gabya
    Subject: Re: PC Magazine readership survey
    Date: Fri Jun 28 10:41:10 1991

    we have heard the same from jonathan seybold.

    MS 50662180
    CONFIDENTIAL
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