Chapter 98: The Inertia of History

Word had gotten out about the Project Chess, and while many expressed skepticism, William White knew that Big Blue was officially entering the microcomputer field.

As for why it was done so quietly, only the heavens knew. IBM was a colossal machine that couldn't change its path easily. Within their ranks, the importance of microcomputers was not fully recognized.

Could computers really become household items? They thought it was a joke. While game consoles might have that potential, everything else seemed unrealistic to them.

Atari might be in tears hearing this, as IBM had great expectations for them. Regarding the arcade game from Legendary World, they didn't think it would reach homes.

They were well aware of the price of Motorola's 68000 CPU. It was so expensive that while arcade machines could handle it, households simply couldn't afford them.

Soon, Intel's 8080 series chips came into their view. Though it didn't perform as exceptionally as Motorola's, the price was very appealing.

There was another important factor too -- the IT industry values heritage. The founders of Intel all came from Fairchild Semiconductor. Motorola couldn't boast the same pedigree; they were considered outsiders.

Texas Instruments? Those unruly cowboys were notorious for making a mess of things.

During this period, Intel was actually in trouble. Their main business wasn't in CPUs; they focused primarily on dynamic RAM.

This is what later became known as memory. If you had enough dollars, anyone could enter the memory business.

But when it came to production, Intel was essentially being trounced. They couldn't compete with European manufacturers, nor even with domestic US companies.

What was more alarming was that Japanese companies had already entered this field, making the future very bleak for them.

At this awkward moment, Big Blue offered an olive branch.

...

William White couldn't help but marvel at the frightening inertia of history. Motorola was once again overlooked, so there was nothing more to say. Just follow the historical momentum; any attempt to change it would be futile.

Office software finally faced a challenger, led by a company named Lotus, which was clearly aggressive and aimed to give White Software a hard time.

"$68? Very well, Tom, don't worry about them. Stick to the plan." Such a big piece of cake was bound to attract predators, but unfortunately, they were underestimating how hard it was to turn the tables.

"Suzuki, have the legal department initiate litigation procedures. Don't worry about winning or losing; just tie them up. If we can restrict their sales, paying some price is okay."

"Alright, boss, I'll arrange it immediately."

When it comes to patent disputes, bullying the small with the big is easy. Your software might need to be taken off shelves, and your company's accounts might get partially frozen.

Because they've applied for asset protection, your dissatisfaction is worthless -- that's just how it is.

On the weaker side, Lotus could only rely on antitrust clauses, though their chances of success were slim.

Trying to sue a company that was less than a year old? The Justice Department wouldn't risk its reputation. If the opponent is weak, a warning at most might suffice.

William White? He is a nightmare for many.

If you're not afraid of his sharp tongue, go ahead and try, but be ready for a bruising experience.

...

Just when Lotus was at their wits' end, White Software released a new version. Although the improvements weren't remarkable, it was stunning enough, and the most terrifying aspect was that the price of the old version dropped to $29.9.

What a ridiculous price! Lotus's software couldn't compete, and now they faced such a blow -- they didn't know what to do.

These brutal and domineering tactics against competitors were absolutely ruthless. If you couldn't find a solution quickly, you might be forced to shut down.

The biggest controversy in the patents mainly centered on file formats, leaving competitors speechless.

If you used it, you'd infringe. Choosing not to meant you couldn't print unless you didn't use Apple's print adapter card.

Other computers wouldn't have an issue, but this kind of format inconsistency isn't acceptable to users. They wouldn't want to install two sets of software and create duplicate spreadsheets.

Especially when their price was double that of others.

Lotus? It was just a joke.

Using relationships with suppliers and clients to strangle competitors is not William White's invention. Everyone does it to some extent.

...

William White had a reason to be nervous about Lotus. It was baffling that they had emerged earlier than expected. Wasn't he supposed to have two leisurely years?

Sometimes, having foresight isn't always good. It drove him insane. In such a lucrative industry, even without Lotus, something else like Water Lily would come along -- it was unrealistic to think he could rake in profits for two years straight.

Silicon Valley companies usually had venture capital involved, composed of profit-driven individuals. If the risk was too great, they wouldn't invest.

Clearly, Lotus's backers retreated; further investment to continue the fight was foolish. The best option was for someone to take over, allowing them to withdraw gracefully.

For that era's businesses, this level of suppression was uncommon. Lotus was indeed stunned, and some other companies were forced to close.

White Software's ruthless tactics naturally caused backlash within the industry, the most vocal being their old rival, Larry Ellison.

"We welcome competition, but don't plagiarize. We've got a hundred million dollars on our books, just for dealing with thieves. You copied even the errors in our code and dared to deny it? As for some ill-intentioned critics, get your own business in order! Heard your accounts are dry. May God bless you."

White Software's responses continued to be sharp. With every disclosed document, it became widely acknowledged that plagiarism was rampant.

Copying isn't out of the question; in that era, it wasn't unheard of. But if you can't even copy properly, that's just disappointing.

"Holy cow, did they really leave blank instructions in there?"

This guy is truly devious. What nonsense about accidental mistakes -- it's outrageous; it was clearly a pre-dug trap.

An eager Justice Department also backed down. They weren't sympathetic, and with the evidence against them, winning the case wouldn't matter much.

*****

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