Business turns tough in software

Article Abstract:

Attendees at the Technologic Partners' Personal Computer Outlook conference, held in San Francisco in the week of Dec 7, 1992, complain about hard times in the software industry, saying it is increasingly difficult to compete against Microsoft Corp. An analyst points out that it has become almost impossible for other companies to compete directly with Microsoft in core software applications such as spreadsheets or word processors because Microsoft can bundle products together and sell them at low prices. Complaints about Microsoft focus particularly on Microsoft's ownership of MS-DOS, the dominant operating system for microcomputers, and on the popularity of Microsoft's Windows graphical user interface (GUI). The Federal Trade Commission (FTC) is investigating Microsoft's activities, looking for indications of monopolistic practices. On Dec 9, Borland International Inc announced that it will lay off 15 percent of its workers and take a $35 million charge for its current quarter. Borland cites a price war started by Microsoft as a reason. In the week of Dec 7, Borland's stock traded at $20.75, which is less than a fourth of their value a year previously.

Analysis, Management, Finance, Investigations, Column, Antitrust law, United States. Federal Trade Commission, Monopolies, Borland International Inc., Industry Analysis, Outlook, Market Analysis, Competition, Stock, Investigation, Antitrust Issue

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Microsoft to charge for technical help; from $25 a call to $20,000 a year for computer advice

Article Abstract:

Microsoft Corp announces it will start charging corporate customers Oct 1 for software support services it currently provides for free. While individual users of such microcomputer applications as the Word word-processing and Excel spreadsheet programs will continue to receive unlimited telephone support, priority users will pay $25 an incident or $195 a year for priority access to a toll-free support number. A premier support program will offer Fortune 1000 companies unlimited access to a three-person contact team for $20,000 a year. Even individual users will have to pay for MS-DOS, Windows and Windows NT operating system support calls after an initial 90-day period. Microsoft's move results from lower profit margins in the wake of increased price competition in the software industry. Competitors Lotus Development Corp has already begun charging for support services, and Borland International Inc plans to follow suit soon.

Software, Services, Prices and rates, Customer service, MSFT, Economics of Computing, Support Services, Pricing Policy, Software packages

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