Microsoft LAN Manager
1. How important is the LAN Market to Microsoft? Why?
Microsoft has strong dominance in the system software market. MS-DOS was a very successful product in 1980s that led Microsoft to expansion of it business and to develop a diverse product line. Microsoft had monopoly in the systems business for over a decade; computer users resisted switching to another system as they become used to and friendly with their Microsoft system. The intense interest in LANs and LAN software, driven by the technological and economic advantage of LANs, made it clear that what personal computers were for 1980s, LANs proved to be for 1990s as well.
2. What are the most critical problems facing the network business unit?
The LAN market was still in early stages in 1980s, with uncertainty about standardization for compatibility with other computers. Novell’s position is threatening to Microsoft for market share, as customers’ desire compatibility and standardization to link many workstations that must communicate within their organizations and Novell’s LAN software has all this to win the market.
Microsoft’s situation is same as Sony’s Betamax system in videocassette recorders (VCRs), which gradually lost market with the new entrant, VHS, became the market standard. To corner more market share Microsoft had to create something advance that can competitive advantage over Novell. Since Microsoft’s LAN Manager Version 1.0 was not capable to overcome advantages of Novell’s product, 2.0 was a critical product to defeat Novell and certainly 3.0 to overtake the market.
3. Which new version of Microsoft’s LAN Manger is more important?
Microsoft’s LAN Manager Version 2.0 is important as Novell’s NetWare 386 was in market few months back. But on long run, Version 2.0 cannot take Novell’s market so 3.0 would be more important. If Version 2.0 doesn’t overtake the Novell’s market than Version 3.0 would be launched in the Novell’s successful market where customers might have chosen Novell as a standard, in that situation Version 3.0 can never be successful. So, both the version should have been launched as early as possible. But both the versions were designed to for completely different objectives and thus require different raw material and resources. So the company has to decide the focus on both the versions.
4. What steps should Microsoft consider to improve the product developments process?
- To hire more talented people to work on version 3.0, while the people working on 2.0 should be focused on only that version
- The Stover-Rudder Specialization worked nicely, so try to look for some other such opportunities
- Develop new technology to expose designers to practical “market realities” that their design must satisfy
