Chapter 20: The Tangled Giant

With the latest changes in the IT industry, two major IT giants found themselves in a tough spot, struggling to adapt their massive corporate structures.

The Big Blue was particularly confused and uncertain about whether to enter the personal computer market. They understood the applications of White Software, which, while not powerful, were impressive enough to catch attention. As microcomputers started to shake up the market, many of their users began transitioning to personal computers, leaving these giants restless.

If this had occurred after the year 2000, acquisitions would have been straightforward -- simply acquire Apple and White Software, and with a high enough price, success would be almost guaranteed. If the two companies refused to change, there were always tactics to squeeze them out, even poaching top talent. At that level of acquisition, ordinary employees might not be the only ones at risk; founders could be the first to bail.

However, in this era, things were different. The Department of Justice wasn't something to trifle with. If they attempted such maneuvers, the consequences for their company would be severe.

Since acquisitions weren't an option, the Big Blue had to take another route. They had plans in place but only acted sooner than expected. Smaller companies like Tandy and Commodore were not going to wait around. They had no choice but to step up their game.

Before White Software came into the picture, software companies were at a significant disadvantage compared to hardware manufacturers. Now, the situation had changed considerably; the notion that software was optional was outdated. Believing otherwise would only show ignorance.

Previously, the positioning of these so-called microcomputers had issues. Unclear target customers led to confusion for salespeople. Now, that problem was solved; the approach was straightforward, and many clients even reached out first. If salespeople couldn't sell under those conditions, they might as well find a different line of work.

Accurate market positioning was crucial. When Apple was founded, personal computer enthusiasts were their primary audience, not corporate clients. Clearly, this choice was misguided. Before White Software, their main customers were small and medium-sized enterprises, and it would have been foolish to hold on to old beliefs.

Though Steve Jobs had his pride, it didn't mean he had a grudge against the greenbacks -- after all, the Apple II wasn't his sole creation; profit was the main concern. During this era, he was seen as a countercultural leader, and he didn't think highly of White Software, seeing them as a lucky break rather than a true contender.

Jobs was a prominent symbol of the disillusioned generation; older folks, especially Wall Street elites, grew tired of him. They weren't keen on countercultural products, but the Apple II was considered a solid offering. Jobs, however, wasn't impressed; he saw it as a compromise with mainstream markets and craved something more cutting-edge. He didn't want to push advertising for the Apple II, believing new product development was more vital.

Unfortunately for him, others were in charge. Markkula and the team wanted to drive the direction, and since Jobs had talent, he was better suited for developing new products while leaving marketing to others.

...

"Fulton, let's head back to Texas. There's not much to do here anymore. We need to unwind for a bit, and I can settle the silver matter," William White said.

"Sure thing, sir. I'll get the tickets," Fulton replied.

"Okay, I'll take care of Tom's assignments. Other than that, I'm all set."

Tom, a natural sales guy, executed William White's plan well, helping White Software gain recognition quickly. While industry insiders knew they were young, the outside world started viewing them as a benchmark in the field.

Investment banks sought to invest but faced rejection. White Software was open to collaboration later but wasn't ready at the moment; they planned to open their investing window in a year, offering ten percent of shares to the market.

"Price?"

"Valuation?"

"Sorry, you're way undervaluing us. We're not interested in what you're offering now. In a year, you'll see just how wrong you are."

Investment banks encountered a stubborn boss; they had never seen someone so uninterested in their offers. William White wasn't out of touch; the company's current valuation was in the twenty million dollar range. He had little interest in a couple of hundred thousand dollars -- he didn't need that kind of funding right now.

With the company doing well, acquiring their own space became essential. Land in Silicon Valley was still relatively cheap, but it wouldn't stay that way forever. Besides, securing a spot in the core area was increasingly difficult.

Upon seeing the plans for White Software's facilities, many could only express admiration, although they didn't understand why a software company would need so much space.

A large gathering of journalists flocked to San Francisco, hoping for an interview, but they were too late; William White had already returned to Texas. They settled for interviewing the CEO of White Software instead.

...

Having spent over a month away from the farm, little changed on the homestead, except for a few more pieces of farming machinery. The vineyard required expansion; though the reason wasn't clear, growth was always a positive thing. Meanwhile, neighboring farms barely maintained operations.

Returning to his own farm undoubtedly lifted William's spirits. He had been incredibly busy and needed to reset.

"Sir, the boy from the Bush family is coming over tomorrow. Should we entertain him?" Fulton asked.

"Ha! Is the drunkard paying a visit? Of course, we've got to entertain him," William said with a grin.

"Sure thing, sir. I'll let them know," Fulton replied.

"Fulton, let's make it a fancy spread. It's been a while since I last saw him."

Once Fulton left, William reflected that their families had a good relationship. The Bush family hadn't stepped on his toes during his tough times.

Texas farmers often banded together, sharing a rebellious spirit. If two had issues, they might get into a brawl rather than play dirty like the Hunter family.

Although the Bush family had political connections, they were also financially strong, owning substantial farmland and a successful oil business. While their economic might didn't match the White family, their political status added complications -- they often found having too many assets could become a liability.

William White knew their intentions well; Texas was home to the establishment, but the White family never sided with the establishment's battles. This family preferred to stay neutral, ever since their disastrous choice during the Civil War.

If William was a mere spoiled rich kid, he might be ignored, but now, things had changed. No one could afford to underestimate his influence any longer.

*****

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