Web Master
September 6, 1996, Marc Andreessen Web Master |
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We belong to industry associations that have lobbying efforts under way. We also have a person in our legal department who is our public policy counsel who spends most of his time in Washington. Increasingly, there's actually the risk that a bill could get passed that would hold us liable for things like content. That's just insane, but the politicians don't know that half the time. Content providers are worried enough now about copyright infringement that they would like to hold software providers in some cases liable for enabling the copyright infringement. And then there are issues that directly affect our business, like [the inability to export] encryption. Netscape is losing $20 million to $40 million revenue this year because of this. The problem exists with or without us. So we have to get in the middle of issues like that.
What other issues do you think besides politics are on the horizon?
The arrival of the Internet and intranet is forcing a transition
in how businesses treat technology. For the last 35 or 40 years, most
computers were used to automate processes that already existed inside of
businesses. But now computers are increasingly being used to create new
processes that are centered around the computers themselves that the
computers made possible. You can build an intranet now that seamlessly ties
together your internal company and its culture and its employees and
seamlessly extend that out to your partners and your suppliers and your
customers. That means that the businesses that do (build intranets) have
significant advantages over businesses that don't.
Are most companies switching over to the concept of the
intranet, or are you enlarging the market?
A little of both. We tend to get a lot of business for things
like information sharing or database access or collaboration. We're also
getting a good share of the email business. So a lot of it is new customers,
but a lot of it's business that would have gone to Notes two years ago. Our
business is to sell this type of software to companies, and there's sort of a
three-way race between Microsoft, Netscape, and Lotus.
You mentioned culture being an issue. Is that an obstacle you find
with corporations already working with legacy applications who will have a
difficult time of transitioning?
The specific area where there is sometimes some resistance is in
people who have made a political commitment or they've bet their careers on
some technology. Many of them decided on Exchange two years ago, and now
they're finally getting to the point where they can roll it out, except it
looks like now it's obsolete. So they've got a problem on their hands to
work through that. The same thing for Notes. That's the major barrier.
How is Netscape as a company dealing with these two different
market segments: the corporate intranet and the Internet?
The Internet is 80 percent or more of our business. So most of
our product development, most of our features in Navigator, and all the rest
of it are geared to the Internet. The crossover point for us that's really
important is a company like FedEx that wants to take its order management
system or its package tracking system and make that accessible to Internet
users. There's a lot of money there. There's a lot of IS budgets that are
allocated to do this stuff. The Internet's basis of revenue is not
significant, so it's less important. On the Internet side it's tougher to
justify that level of spending on investment because the business models are
not there. The Internet content business so far has proven to be pretty
tough. There's not a broad base of successful business enterprises yet.
Increasingly, a large part of our business will be what we call extranets,
which is companies linking up to other companies. They may or may not use
the Internet as the transport. They may have a private IP network as the
transport, but it shares many of the same characteristics as the Internet.
But in that scenario, Internet users don't get those kinds of
applications or features because you're concentrating more on the business
side of things. Do you see a scenario like that unfolding?
Well, they'll get what they pay for. Everybody else ultimately
gets what they pay for.
NEXT: Network computers
September 6, 1996, Marc Andreessen Network computers |
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September 6, 1996, Marc Andreessen Netscape vs. Microsoft |
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