Paul Maritz written testimony is released

The written testimony of Microsoft VP Paul Maritz was released by the courton Thursday, setting the stage for his own cross examination in Microsoft'santitrust trial. Maritz joined Microsoft in 1986 and spearheaded the development of OS/2 before assuming responsibility for Windows in 1992. Today, he oversees the development of Windows, Office, and the company'ssoftware development tools. He is the highest ranking Microsoft official toappear in court.

According to Maritz, Microsoft faces competition at every level.

"Windows faces intense competition from many sources," Maritz says in histestimony. "Windows faces serious competition from a number of competingoperating systems, including Linux, the various 'flavors' of UNIX, Apple'sMac OS, Be's BeOS and IBM's OS/2 Warp. Companies that compete in the UNIXspace include such large entities as IBM, Hewlett-Packard and Sun Microsystems, as well as a number of smaller firms."

Linux, however, is the real threat, says Maritz.

"The number of developers working on improving Linux vastly exceeds the number of Microsoft developers working on Windows NT," he says.

Maritz addresses many issues in his testimony that are sure to be questioned by the DOJ. For example, Maritz gives his explanation of whyMicrosoft would spend hundreds of millions of dollars developing InternetExplorer to only give it away for free.

"The relevant question is: Why did Microsoft add Web browsing functionalityto Windows? The answer is: to make a better product," he says. "Microsofthas been improving its operating system products by adding new features andfunctionality for more than 15 years. It makes business sense to do so."

Maritz also discusses the cost of IE and how it will still pay for itselfover time.

"As to the government's claim of 'below cost' pricing, the cost to developthe Internet Explorer technologies in Windows will undoubtedly pay for itself many times over. Microsoft's revenues from Windows 98 are approximately $3 billion annually. To recover its annual investment ofroughly $100 million in Internet Explorer technologies, Microsoft needs tolicense only 3.5% more units of Windows 98 than would have been the case ifit had not improved the operating system with such technologies. Given thatmany of the important enhancements to Windows 98 are made possible by Internet Explorer technologies, and given the popularity of Windows 98, itappears that Microsoft's investment in these technologies was a wise one."

Maritz will probably take the stand Monday