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May 13, 2009 8:07 AM PDT

Can Microsoft stop IE's market share slide?

by Matt Asay

The Web browser market has been undergoing tectonic shifts for the past six years, with Microsoft's Internet Explorer (IE) dropping 10 percentage points in market share every two years while Mozilla's Firefox gains 10 percentage points every two years. These trends are called out by Mozilla's Asa Dotzler, and they suggest that as early as January 2013 we could see Firefox surpass IE in market share if the trend continues:

(Credit: Asa Dotzler (Data from Net Applications))

A larger version of the chart can be found here.

Firefox's growth raises all sorts of questions about how proprietary software vendors can and should compete with open-source products in the future, but for now it creates a massive problem for Microsoft. If Microsoft loses its grip on the Web browser market, will this also injure its efforts to become relevant on the Web?

Dotzler notes that "browser releases aren't having any major impact on the macro trends," which could suggest that Microsoft won't be able to stem the tide rising against IE simply by churning out a better browser. Instead, it may need to turn to plan B.

There is a plan B, right?

I'm not so sure. Historically, Microsoft would have dealt with such a slide in market share by tying products together such that competition was crippled but its market share was protected. With intense scrutiny from Europe and a renewed threat of such from U.S. regulators, Microsoft's wiggle room doesn't allow much monopolistic wiggling.

Microsoft, in other words, may be stuck with good old-fashioned competition, which doesn't bode well for it, as the Net Applications data suggests.


Follow me on Twitter @mjasay.

Matt Asay brings a decade of in-the-trenches open-source business and legal experience to The Open Road, with an emphasis on emerging open-source business strategies and opportunities. Matt is vice president of business development at Alfresco, a company that develops open-source software for content management. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.
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Add a Comment (Log in or register) 14 comments
by May 13, 2009 8:33 AM PDT
Looking forward to the day that the browser market isn't overshadowed by a completely useless browser such as IE. Just look at the scores on the acid3 test (http://www.crn.com/software/215901381). That's more than a bit embarrassing for MS. Not to mention it's annoying as hell to properly to write HTML code for IE.

Thanks for another great article Matt.
Reply to this comment
by Matt Asay May 13, 2009 8:39 AM PDT
And thanks for reading. I always hesitate to read comments because of the bile that often congregates here but appreciate your response. I'll live to write another day because of this. :-)
by steveben May 13, 2009 10:43 AM PDT
IE: a completely useless browser? that statement completely discredits your comment.
by betelgeuse68 May 13, 2009 8:48 AM PDT
You say "illegally tying products"... says who? Name a single court case where it was pointed out that the law was violated with respect to the bundling of products and the judgement was upheld. I would have phrased it, "MS' bad karma is catching up to them." But hey, perhaps I'm splitting hairs.

Though I hear what you're saying, MS did have a habit of screwing various software vendors by bundling software but the web has taken a serious bite in that strategy. Thankfully.

I'm an ardent Firefox supporter but of late I've largely been using Apple's Safari 4 Beta since I like the way it renders many sites with its antialiasing turned on. I haven't used IE for 7+ years. I was using "Mozilla" before it got branded as "Firefox".

Here's a good write up by Joel Spolsky which talks about underlying factors why MS' bundling strategy doesn't work anymore (indirectly anyway):

http://joelonsoftware.com/articles/APIWar.html

More to the point, Windows is where the action is when it comes to new app development.

Spolsky wrote that several years ago and it's even more relevant now in some ways but not in others. For example, back then he marginalized Apple whereas Apple today is on a different plateau both in terms of mindshare AND marketshare. And the various examples Spolsky gives of web applications not having certain UI features have all been solved.

Case in point, if you've never heard of the "Bespin" text editor (running in a browser) the Mozilla group is working on, check it out:

http://labs.mozilla.com/projects/bespin/

-M
Reply to this comment
by betelgeuse68 May 13, 2009 8:53 AM PDT
I should have written "Windows is NOT where the action is"
Reply to this comment
by cowatson May 13, 2009 9:21 AM PDT
Better hide this article...the EU needs their cash cow.
Reply to this comment
by rapier1 May 13, 2009 9:53 AM PDT
Sure, plan B is to not give a damn. Let's say MS abandons IE. What real honest to goodness impact would it have on their overall numbers? My guess is 'not much at all'.
Reply to this comment
by Asa_Dotzler_ May 13, 2009 9:56 AM PDT
Things are actually better (for the Web) than this graph suggests. If you look at the data by browser _version_ you see that IE 7 and IE 8 are doing quite well and they're lightyears ahead of IE 6. IE 6 is the microsoft-imposed cement boots and that's the browser that needs to disappear for the Web to make the next leap forward.

IE 6 still holds 15-20% share but it's falling more than 10 points per year so we could see it under 10% share in less than a year. At some point, Web developers will be able to stop worrying about it and the Web will take a big leap forward.

- A
Reply to this comment
by viper396 May 13, 2009 10:21 AM PDT
What are we talking about here? ...browsers that are all free. Exactly what is everyone winning or losing by being the dominate browser? WIll all you people who get emotional over a browser please explain what exactly you personally "Win" or "Lose" if your browser of choice is or isn't dominating?

Maybe Microsoft is letting their share slide because, when you step back and think about it, what exactly has owning a majority of the browser market actually gotten them besides bragging rights and constant litigation from Governments looking for quick cash? What exactly would owning the majority in the browser market get Google, Firefox, or Apple? Hoping some browser will dominate just so you can having bragging rights is petty.

Inevitable human nature will kick in and no matter which browser is on top there will always be people hoping for it to fail simply out of spite. These browsers wars are pointless.
Reply to this comment
by ilsthey May 13, 2009 12:40 PM PDT
@viper396
"...browsers that are all free"

For the clients, yeah. But there is significant cash spent by those trying to write content to be consumed by these free browsers. And, historically, IE has been the most expensive browser to make content for. I've not tested IE 8 yet. But I know there are web pages I can build will cost less then $10 to make and have them show the way I want in all the other major browser, but then cost $100 or more to find some work around or hack to get the same affect on the popular IE versions.
by monkeyfun14 May 13, 2009 12:18 PM PDT
It depends on the situation really if they turn around and follow rumors and use a webkit engine users may feel less inclined to go find alternatives.

They have a nice feature set already they just lack speed and standards compliance(Standards compliance is something they are fixing as we speak)
Reply to this comment
by rojo3333 May 13, 2009 2:57 PM PDT
IE web standards are getting better but they really need to do something to create an entirely new browser and they need to do it fast. Using webkit is a good call. But IE needs to become popular enough such that people are willing to create extensions for it as they do for FireFox. For the past two versions I pretty much did not use IE but since version 8 I have found myself using it and Chrome a lot more. So I would at least say Microsoft is paying attention. They need to move IE to an update schedule like their Live Essentials products which are updates 2-3 times a year.

Can Microsoft stop the slide? Absolutely they can. I think Microsoft has shown in recent years (thanks to anti-trust settlements) that they can make the necessary adjustments to stay afloat in certain areas.
Reply to this comment
by MWSherman May 13, 2009 7:00 PM PDT
I see Firefox getting squeezed from both sides, bundled browsers on one side and Chrome on the other: http://clipperhouse.com/blog/post/Firefox-has-a-user-base-does-it-have-a-future.aspx
Reply to this comment
by halfNakedPappy May 13, 2009 7:49 PM PDT
Not completely useless, but definitely inferior and an unnecessarily difficult platform to develop for. Maybe someday Microsoft's browser will be more standards compliant... and secure... and fast... and open...
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About The Open Road

Matt Asay brings a decade of in-the-trenches open-source business and legal experience to the Open Road, with an emphasis on emerging open-source business strategies and opportunities. Matt is general manager of the Americas division and vice president of business development at Alfresco, a company that develops open-source software for content management. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

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