mr potter vs. bailey building & loan 16 of april, 1997 by johnmichael patrick monty monteith

I look at the relationship between Microsoft and Apple much like the relationship between Mr. Potter and the Bailey Building and Loan in ‘It’s A Wonderful Life’. People need the Building and Loan (Apple Computer) if for no other reason than to just have a place to turn to instead of having to crawl to Mr. Potter( Mr. Gates). However, unlike the movie, it seems that Mr. Potter is just as dependent on the Building & Loan as the towns folk are.

Let me explain. You must have heard the news by now: Windows 97 is no more. It will now be Windows 98, at the earliest. (When was the last time you saw a Microsoft product released on time?) This news came as a surprise to no one, since the clues that Windows was going to be late have been on the wall since a short time after the release of Windows 95. Employees at Microsoft have been talking delays for over a year. Not because the product is not ready, but more because they never really got the impression that Microsoft wanted to release it in 1997. Yet, even though this is a surprise to no one, there is a surprise hidden in this for Macintosh users. The surprise is that Microsoft obviously wants Apple to survive. Although anyone familiar with Microsoft marketing strategy would say this is old news, too.

Many people make the mistake of interpreting Microsoft’s decisions as reactions instead of keen marketing strategy. Some have even made the naive assertion that Windows 97 is being delayed because Microsoft can not get the product ready in time. Get real, folks. Gates earns billions on his lunch hour, and there is no piece of software that he could not release by the end of the week simply by throwing enough money at it. For proof, look at how quickly after Microsoft said it was entering the Internet market that Explorer was released. Microsoft can release product as quickly as it wants to. They make decisions which are profitable. Microsoft releases software based on the desires of it’s current marketing needs. Microsoft’s ultimate goal in everything it does is to make money. And, if Microsoft delays the release of a product, it is because somehow this will serve them well.

Lets face it: Windows 97 could be released tomorrow if Microsoft wanted to. It would be no more buggy than their usual first release of a new program, and chances are it would devastate their competition. If Windows 97 was released today it would be over a year ahead of the full release of Apple Computer’s prayer hymn Rhapsody. Although a few die-hard Mac users would make the argument that Windows 97 (or 98, or 2000, or 3000) is not comparable to any Mac operating system, let alone Rhapsody, the truth of the matter is that the public would turn away from Apple. Apple Computer would be all but finished as yet another death blow would be delivered. Could you imagine the sales of Macintosh computers over the next year with yet another all-new Microsoft operating system released and Apple still a year away from answering the release of Windows 95?

Windows 97 is not the only way Microsoft could finish Apple Computer. They could also switch the Windows market over to Windows NT. All they would need to do is release a more "personal" version of NT, push the market place into moving NT only, and suddenly Apple’s Rhapsody argument would lose any force it might have had. All Microsoft would need to do is start the process this year, and I would find it hard to believe Apple could make it much beyond the end of the century.

Or, Microsoft could release an operating system that was compatible with Macintosh computers. Imagine the problems THAT would cause? It would further split apart an already less than unified Macintosh user base. What would developers write their applications for? System 7, BeOS, Rhapsody, or Windows for Mac? Developers already claim the market is to small for their warez; imagine the excuses with four different operating systems to develop for.

My point is not that Apple Computer is going to be squashed by Microsoft. It will not, nor will it ever be. At least, Microsoft would never destroy Apple on purpose, unless it is a profitable choice. And that ultimately is the key. Microsoft needs Apple. They need Apple Computer to continue to hold on to it’s five percent market share. They need Apple to continue to develop new innovative products. But, most importantly, they need Apple Computer to keep the justice department from splitting up the Redmond giant.

Without Apple, Microsoft would be a monopoly. If Apple Computer was not around today, Gates would have to watch his empire be destroyed by the Feds because he has no real competition. If it were not for Apple, Microsoft would not be nearly as successful or profitable as it is today in it’s products, but more importantly, the company would be illegal.

That is why Gates will make decisions which not only keep from hurting Apple, he will actually make decisions which HELP Apple. I believe the recent delay of Windows 97 is one of those decisions. Gates has delayed an application which he could without any effort release immediately if he wanted to. Instead, chances are that he will wait until Rhapsody is released. He will let Apple Computer have a fighting chance before making billions more. Why else would Microsoft delay an application that this year could be as ready for release as Windows 95 was?

Mr. Potter is actually helping to keep Apple Computer alive just so he can continue making as much money as possible at Microsoft. Sure, he would not allow the competition to really become competition. If Apple showed signs of taking away money from Microsoft, there would be action taken. Never the less, even in this small way, Mr. Potter needs the Bailey Building and Loan.