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MS & US
January 15th, 1998 by Clark Humphrey

Due to early holiday-season deadlines, this Misc. installment’s the first to get to comment on that very peculiar New Year’s, during which those Seattle residents not blotto-drunk might as well have been, since all attempts to see the Space Needle fireworks resulted only in a fog-blurred haze of colors like something from a Mark Tobey painting.

ERROR MESSAGES: Hardly a day goes by without somebody saying something nasty about Microsoft. The Dept. of Justice disses the way MS tries to strong-arm PC makers. Nader warns about MS trying to monopolize “electronic commerce” tools, wanting a piece of every buck that’ll ever change hands online. Sun and Netscape claim MS wants to quash their “cross-platform” software lines, which threaten the notion of an MS-dictated computer universe. Mother Jones charges an MS-funded antipiracy group promising not to prosecute offices for using unpaid-for software if they promise to not only buy their warez but to buy all-MS software. And MS’s temps and perma-temps complain about their second-class treatment within the firm (including, thanks to new state legislation, no more overtime pay).

In most of these cases, the company claims it’s being unfairly targeted due to its “success” at creating products that just happen to be “popular among consumers.” That’s not quite the way it is, of course. Just about anybody who’s not working for the company (or for one of its media joint-venture partners) will acknowledge MS writes better contracts than code. Instead of innovation and competition, it operates by buying friends and crusing enemies. While its staff ideologues publicly pontificate about a cyber-future of decentralized societies and limitless opportunity, it behaves like an old-fashioned oil or railroad monopoly. In the past, MS’s enemies wanted the feds to split the company in two, spinning the DOS/Windows side into a separate company. That move by itself wouldn’t solve anything now, since the DOJ’s main argument is against MS turning Internet application software into a piece of Windows, making it tough for others to sell separate browser programs. It’s not just using its operating-system dominance to sell application software, but to give away software other companies want to sell. In other industries, it’d be called anti-competive “dumping.”

Our fair region is the born-‘n’-bred home of perhaps the most widely hated American company outside the oil or media businesses. Gates and Allen come from what passes for “old money” in this relatively new corner of western civilization. What does it mean to the longstanding image of this place as, for better or worse, “The City of the Nice” (as proclaimed by Tom Robbins in ’81)?

That, of course, always was an exaggeration. We weren’t “nice” so much as polite and businesslike, eager to please when it’s in our interest. (Author Roger Sale wrote in ’75 that Seattle was “bourgeois from the start.”) Despite the popularity of drunks, scoundrels, labor radicals, and whoremongers as local historical icons, most of the real settlement of the city was led by would-be timber, transportation, and real estate barons. The ones who made it didn’t just have what the new agers call “prosperity consciousness;” they maneuvered themselves into the right places, befriended the right people, made the right deals. Behind today’s Boeing boom lies a heritage of sales execs who forged long-term friendships with airlines, sealing deals Lockheed and Douglas couldn’t match. Rainier and Oly stayed prominent as long as they did because regional Teamster boss Dave Beck used his influence to make sure local beer outlets preferred local beers. The burgeoning Seattle biotech industry’s due to Sen. Warren Magnuson’s pipeline of federal bucks into the UW med school. MS started by signing deals with early hobbyist-computer maker Altair, and became a giant by signing deals with IBM. Much of the Seattle/ Oly “indie rock” philosophy has to do not just with alternative kinds of music but with forging alternatives to the music industry’s contractural practices.

Seattle’s a town of dealmakers as much as it’s a town of engineers. MS took this craft to a hyper-aggressive level. The extent to which this aggression succeeds and/or backfires will affect the company, the region, and the world.


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