Scoble is
going on about how there's no business case for allowing third-party instant messaging clients free access to MSN Messenger, and how people criticizing the move need to support their criticisms with business cases and stop asking for things for free. Evidently it hurt his feelings when
Dan Shafer called them nimrods for this decision.
This is the heart of the Microsoft attitude, which I've decided to start calling Microsoft Persecution Complex. Even though they have 90% market penetration and around $50 billion in the bank, Microsoft and its employees from the top on down
still behave as though they're only a week or two from bankruptcy. And they appear to honestly believe it too — that if one small company flies under their radar without being coopted and releases one killer app, it'll be Game Over for Microsoft. This paranoia drives most of their behavior towards the outside, from various lock-in attempts like the MSN Messenger gateway, to their attempts to patent everything they do no matter how trivial, to their "We have to screw everybody else before they screw us because you know they're going to try to!" business practices. It's paranoia, pure and simple.
Here's what I
posted in response to Scoble in his weblog's comments area:
Instant messaging is like email. It only works - it only has sufficient network effects - when enough people interoperate. The network effect is king, and Microsoft is gambling that they have enough of one going that shutting off outside access won't derail it. Doesn't sound like a wise bet to me.
This is exactly like announcing that the next version of Outlook will only let you email other Outlook users and talk to Exchange servers. It may look good for business in the very short term ("Just think of all that potential revenue that's going to be realized!"), but you'd see people switching mail clients and servers so fast you'd barely be able to make sense of it.
Fortunately, moves like these will drive people to use Jabber or another truly open, interoperable, IETF-managed instant messaging system quickly. Eventually to keep playing in the instant messaging space Microsoft, Yahoo!, and AOL will have to support the Internet standard. And at that point, the end users really win because they won't be locked in the trunk by
any vendor.
Oh, and Scoble? You are nimrods. The reason you're nimrods is because your first instinct was to criticize the person complaining about an attempt at lock-in for wanting something for free and not considering poor, poor Microsoft's business needs, rather than asking what was best for Microsoft's customers. That's a
very Microsoft behavior, and it's one of the things that needs to change about Microsoft culture. If you'd actually asked what was best for the customers, you might have come to a different conclusion.
Believe it or not, Trillian users are Microsoft customers! (Trillian only runs on Windows.) And isn't it a free application that replaces another free application that's used to access a free service? Hmm, what's the business case again for making MSN Messenger free but locking out another free application on the same platform?