NATIONAL BESTSELLER <f$r ERT X. CRINGELY 'i1 'i1 HOW THE BOYS OF SILICON VALLEY MAKE THEIR MILLIONS, the BATTLE FOREIGN PUBLIC Tv, COMPETITION, AND triumphof TH*Nerds STILL CAN'T GET ADATE '- NEWLY REVISED AND EXPANDED (cid:141) (cid:141)>(cid:141)(cid:141)(cid:141) » (cid:141) » ACCIDENTAL E M P I R E S (cid:141) »»>>(cid:141)»(cid:141)(cid:141)(cid:141)(cid:141)> (cid:141) (cid:141) » > » » (cid:141) (cid:141) (cid:141) » » » ACCIDENTAL E M P I R E S (cid:141) » » » > » (cid:141) (cid:141) (cid:141) (cid:141) » » HOW THE BOYS OF SILICON VALLEY MAKE THEIR MILLIONS, BATTLE FOREIGN COMPETITION, AND STILL CAN'T GET A DATE ROBERT X. CRINGELY HarperBusiness ADivisionofHzrperCott'msPublishen Ahardcovereditionofthisbookwaspublishedin 1992byAddison- WesleyPublishingCompany,Inc.Itisherereprintedbyarrangement withAddison-WesleyPublishingCompany,Inc. accidentalempires. Copyright©1992, 1996by RobertX.Cringely. Allrightsreserved. PrintedintheUnitedStatesofAmerica.Nopart ofthis bookmay beusedorreproducedin anymannerwhatsoever without written permissionexceptin the caseof brief quotations embodied in critical articles and reviews. For information address HarperCollins Publishers, Inc., 10East53rdStreet,New York, NY 10022. HarperCollinsbooksmaybepurchasedforeducational,business,or salespromotionaluse.Forinformationpleasewrite:SpecialMarkets Department, HarperCollins Publishers, Inc., 10 East 53rd Street, NewYork, NY 10022. FirstHarperBusiness editionpublished 1993.Reissued 1996. DesignedbyJanisOwens The LibraryofCongresshascataloguedthe previouseditionas follows: Cringely, RobertX. Accidentalempires:how theboysofSiliconValleymaketheir millions, battle foreign competition,andstill can'tgetadate/ RobertX. Cringely. p. cm. Includesbibliographicalreferences. ISBN0-88730-621-7 1.Computerindustry—California—Santa ClaraCounty. I.Title. HD9696.C63U51586 1993 338.47004^0979473—dc20 92-53427 ISBN0-88730-855-4 97 93 99 00 RRD 10 9 8 7 6 5 ForPafnmy; whoknowswe needthemoney CONTENTS PREFACETOTHE 1996EDITION ix PREFACE xi CHAPTER ONE THE DEMO-GOD 3 CHAPTER TWO THE TYRANNY OF THE NORMAL DISTRIBUTION 18 CHAPTER THREE WHY THEY DON'T CALL IT COMPUTER VALLEY 33 CHAPTER FOUR AMATEUR HOUR 48 CHAPTER FIVE ROLE MODELS 73 CHAPTER SIX CHAIRMAN BILL LEADS THE HAPPY WORKERS IN SONG 93 CHAPTER SEVEN ALL IBM STORIES ARE TRUE 119 ACCIDENTAL EMPIRES CHAPTER EIGHT SOFTWARE ENVY 139 CHAPTER NINE CLONES I59 CHAPTER TEN THE PROPHET 182 CHAPTER ELEVEN FONT WARS 209 CHAPTER TWELVE ON THE BEACH 230 CHAPTER THIRTEEN ECONOMICS OF SCALE 247 CHAPTER FOURTEEN COUNTER-REFORMATION 269 CHAPTER FIFTEEN FUTURE COMPUTING 297 CHAPTER SIXTEEN BUT WAIT, THERE'S MORE! 317 CHAPTER SEVENTEEN DO THE WAVE 336 INDEX 363 PREFACE TO THE 1996 EDITION In his novel Brighton Rock, Graham Greene's protagonist, a cocky 14-year-oldgangleadernamed Pinky, has his first sexual experience. Nervously undressing, Pinky is relieved when the girldoesn't laughatthe sight ofhis adolescentbody.Iknow ex actlyhowPinky felt. When I finished writing this book five years ago,I had no idea how it would be received. Nothing quite like it had been written before. Books about the personal computer industry at that time eitherweremiredin technobabble ordescribed agee- whizcultureinwhichtherewerenobadguys.Inthis book,there arebadguys.Thebook containedthe totalwisdomofmyfifteen- plusyearsinthepersonalcomputerbusiness. ButwhatifIhadno wisdom? What if Iwas wrong? With this newedition, Icanhappily reportthat the verdict is in: for the most part, I was right. Hundreds of thousands of readers, manyofwhomwork in the personalcomputerindustry, have generally validated the material presented here. With the exceptionofanoccasionaltypographicalerrorandmystupidpre diction that Bill Gates would not marry,what you areabout to readis generallyacceptedasrightonthe money. IX ACCIDENTAL EMPIRES Not that everyone is happy with me. Certainly Bill Gates doesn't like to be characterized as a megalomaniac, and Steve Jobsdoesn't like to be described as a sociopath, but that's what theyare.Trustme. This new edition is prompted by a three-hour television miniseriesbasedonthebookand scheduledto playduring 1996 in most of the English-speaking world. The production, which tookayear to make,includesmorethan 120hoursof interviews withthereallyimportantpeopleinthisstory—eventhemegalo maniacsand sociopaths.Theseinterviews, too, confirmedmany of theideas Ioriginallypresentedinthebook, aswell asprovid ing material forthenewchapters attheend. What follows arethe fifteen original chapters from the 1992 edition and apairof new ones updating the story through early 1996. Soletthecomputerchips fallwheretheymay. PREFACE The womanofmydreams once landed ajob asthe girls' English teacher at the Hebrew Institute of Santa Clara. Despite the fact that it was a very small operation, her students (about eight of them) decidedto produce aschool newspaper, whichthey gener ally filled with gossipy stories about each other. The premiere is sue was printed on good stock with lots of extra copies for grandparents and forinterestedbystanderslike me. The girlsread the stories about each other, then read the stories about each othertoeachother, pretendingthatthey'dneverheardthe stories before, much lesswritten them. My catsdo something like that, too, I've noticed,whentheyhide arubber bandunderthe edge of therug andthenallowthemselves to discoverit amomentlater. The newspaperwasatremendous successuntilmid-morning, whentheprincipal, Rabbi Porter,finally got aroundto readinghis copy. "Where," he asked, "are the morals? None ofthese stories have morals!" I've just gone through this book you are about to read, and danged if I can't find amoral in there either. Just more proof, I guess, ofmy own lack ofmorality.
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