With the recent announcement at Microsoft that jobs would be cut, and the general problems with the auto industry, I'm reminded of the following:
Imagine a crossroads where four competing auto dealerships are situated. One of them (Microsoft) is much, much bigger than the others. It started out years ago selling three-speed bicycles (MS-DOS); these were not perfect, but they worked, and when they broke you could easily fix them.
There was a competing bicycle dealership next door (Apple) that one day began selling motorized vehicles--expensive but attractively styled cars with their innards hermetically sealed, so that how they worked was something of a mystery.
The big dealership responded by rushing a moped upgrade kit (the original Windows) onto the market. This was a Rube Goldberg contraption that, when bolted onto a three-speed bicycle, enabled it to keep up, just barely, with Apple-cars. The users had to wear goggles and were always picking bugs out of their teeth while Apple owners sped along in hermetically sealed comfort, sneering out the windows. But the Micro-mopeds were cheap, and easy to fix compared with the Apple-cars, and their market share waxed.
Eventually the big dealership came out with a full-fledged car: a colossal station wagon (Windows 95). It had all the aesthetic appeal of a Soviet worker housing block, it leaked oil and blew gaskets, and it was an enormous success. A little later, they also came out with a hulking off-road vehicle intended for industrial users (Windows NT) which was no more beautiful than the station wagon, and only a little more reliable.
Since then there has been a lot of noise and shouting, but little has changed. The smaller dealership continues to sell sleek Euro-styled sedans and to spend a lot of money on advertising campaigns. They have had GOING OUT OF BUSINESS! signs taped up in their windows for so long that they have gotten all yellow and curly. The big one keeps making bigger and bigger station wagons and ORVs.
On the other side of the road are two competitors that have come along more recently.
With one exception, that is: Linux, which is right next door, and which is not a business at all. It's a bunch of RVs, yurts, tepees, and geodesic domes set up in a field and organized by consensus. The people who live there are making tanks. These are not old-fashioned, cast-iron Soviet tanks; these are more like the M1 tanks of the U.S. Army, made of space-age materials and jammed with sophisticated technology from one end to the other. But they are better than Army tanks. They've been modified in such a way that they never, ever break down, are light and maneuverable enough to use on ordinary streets, and use no more fuel than a subcompact car. These tanks are being cranked out, on the spot, at a terrific pace, and a vast number of them are lined up along the edge of the road with keys in the ignition. Anyone who wants can simply climb into one and drive it away for free.
Customers come to this crossroads in throngs, day and night. Ninety percent of them go straight to the biggest dealership and buy station wagons or off-road vehicles. They do not even look at the other dealerships.
Of the remaining ten percent, most go and buy a sleek Euro-sedan, pausing only to turn up their noses at the philistines going to buy the station wagons and ORVs. If they even notice the people on the opposite side of the road, selling the cheaper, technically superior vehicles, these customers deride them cranks and half-wits.
The Batmobile outlet sells a few vehicles to the occasional car nut who wants a second vehicle to go with his station wagon, but seems to accept, at least for now, that it's a fringe player.
The group giving away the free tanks only stays alive because it is staffed by volunteers, who are lined up at the edge of the street with bullhorns, trying to draw customers' attention to this incredible situation.
(Neal Stephenson, In the Beginning was the Command Line; a version with a 2004 update/response is found here; an amusing response on several fronts by Neal Stephenson from 2004 here)
Will the economy finally get Microsoft to improve their products? It's clear that a good economy was at least partly to help/blame for problems with the auto industry (with good credit and cheap gas, we were willing to buy oversized cars). With a stretch, you could say that Microsoft was the same way: with good credit and low rates, companies were wiling to buy any new operating system. However, with Vista, that all seemed to stop (the company I work for, for example, will not install Vista on any machine...even now).
Will a bad economy be a boom for Linux? Take a look at a hot trend in computer sales...netbooks.
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