Why Microsoft is Losing Browser Share

Jul 05 2009 01:52:32 PM Posted By : Sridhar
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TechCrunch reports that  IE6 market share has declined to 7.6% of all traffic - really good news indeed! At Zoho, we look forward to officially stopping support for IE6 - the day cannot arrive too soon for us. The more interesting story is that Microsoft's share of browser "market" (if indeed there is such a thing as the browser market anymore) is down to a little over 54% and it looks like there will be even more declines ahead.

Why is Microsoft losing share? I would  submit that it ultimately had to do with their fateful decision to tightly weld together the browser and the operating system. That must be the most bone-headed business decision in Microsoft's history. Let's count the costs: a) they got branded an illegal monopolist by a court b) as a direct consequence, they paid billions in fines and damages, to the government and to other vendors; and, finally c) they are losing market share right  and left in the very browser market they attempted to corner with their  welding-together tactic. Other than that, it was not a bad move.

Why do I attribute their loss of market share to that decision? In a nutshell, operating systems necessarily move slowly, while browsers have to move fast, because the underlying technologies and standards (HTML, CSS, Javascript, mobile displays) are all evolving rapidly. Microsoft, of course, knew that when they welded them together, but they did it anyway in order to cut off Netscape's "oxygen supply". In a twist of karma, in doing so, they also crippled their own ability to evolve the browser rapidly, because they had to maintain the legal fiction (the court rejected their claim, so the "fiction" part is accurate) that the browser is an intrinsic part of the operating system.  Note that Microsoft went well beyond merely bundling together IE with Windows  - as an example, WordPad is bundled with Windows, but no one thinks that it is an intrinsic part of Windows, in the same way, say, memory management or the file system is. Microsoft's goal wasn't just to make it convenient for the customer by bundling the browser in, they actually actively made it difficult to uninstall their browser. As a direct result, Windows XP and IE6 were joined at the hip and it was actually non-trivial to upgrade to IE7 on  XP (you are upgrading the operating system!), and most people never attempted it. Ultimately this crippled Microsoft's own speed of execution on the browser: think of the number of updates, major and minor, that Firefox, Safari, Opera or Chrome have on a regular basis, and compare that to the glacial progress made on IE.

Ultimately, people started leaving the Microsoft's browser plantation, and started installing Firefox. The resurgence of the web, actively aided by Firefox, paved the way for the reemergence of the Mac as a viable  computing platform, which further eroded Microsoft's browser dominance. In another fateful decision, Microsoft had decided not to support IE on the Mac (another  consequence of their pretense that IE is an intrinsic part of Windows), so Safari and Firefox would rule the roost on the Mac.

The predictable consequence is that there is a whole generation of internet users who don't ever touch IE. We test on IE in Zoho, but it is a struggle to actually get anyone in the company to actually use IE on a regular basis. We sometimes have to declare "IE days" in order to force people to use and test on IE.

Microsoft aimed the gun at Netscape, and shot itself in the foot.


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