The main theme of the campaign is that Microsoft is insisting on using its software in the PCs sold by the computer manufacturers including Internet browser software. Last year the federal government and the state governments fought a successful battle against the tobacco companies. They are still blood thirsty and their latest target Microsoft will have to use all its wiles and guiles in its armoury to defend its position.

All these things are happening just before the release of the new Windows 98 operating system software by Microsoft. While some aggressive lawyers and state attorneys are bent upon securing a permanent injunction against Windows 98, some of the informed people in American legal circles say thatMicrosoft could escape with minor damages. Windows 98 is scheduled to be released to the public on June 25 this year.

Actually Windows does not have a monopoly. Unix, O/S 2 and Apple Computer Systems are the other operating systems. But at the same time it is also true that Microsoft operating system has a market share of 90 per cent in PCs. Sometime back Microsoft and Cisco Systems were allies. Today they have parted company and are competitors. For example Microsoft is now refining a function in its Windows NT software that does the same job as Cisco's flagship routing software IOS. Cisco is the No 1 maker of equipment that links computers to corporate networks and the Internet. It dominates the market for routers which use hardware and software to move data around networks. Of course, Microsoft's competition in this field does not pose any threat to Cisco because most corporate entities do not use Windows NT to manage their networks. On the other hand Cisco's IOS lets a network hardware componentscommunicate with each other and is used in large networks managed by Unix software. Not satisfied with its niche market, Cisco is deliberately going for a confrontation with Microsoft by introducing new products.

Oracle has openly criticised desktop management system preferred by Microsoft. Oracle likes to see computer applications run at the broader, network level, where it is very strong. Therefore, in spite of a huge market share, Microsoft still faces powerful competitiors in various segments of software industry. Among all the major US companies, Microsoft enjoys the highest net profit margin of 30 per cent to 35 per cent. It has $12.4 billion cash reserves. Talking about competition, recently 3Com Corp forced Microsoft to modify its use of the word `Palm' in marketing its hand-held computers. But the modification is only superficial -- from `PalmPCs' to `Palm-Size PCs'. 3Com is the world's second largest computer networking equipment vendor, 3Com's PalmPilot is the best selling hand-held computer tilltodate. When Microsoft itself enjoys tremendous reputation worldwide, why should it try to imitate the popular brand name of 3 Com? The answer is not clear. But the retreat of the company has marred its reputation.Microsoft and Sony Corporation of Japan have forged an alliance to forge a single standard to link such devices as personal computers, digital television, video cameras and video cassette recorders in a home network.

Last year Microsoft stunned the world by announcing its decision to invest $150 million in its long time rival Apple Computers. It also announced that the latest version of its Internet Explorer browser for Mac was available for immediate free download over the Internet. Microsoft also pledged to continue to produce Apple's Macintosh software for atleast 5 years. This is a clear case of Microsoft's using diplomacy to buy competition. But it could not succeed with another rival Sun Microsystems. A US district judge Ronald Whyte said that Microsoft did not have Sun's approval for itsadoptation of the Java in its Internet Explorer browser. He ordered Microsoft to stop using the Java logo of a coffee cup with steam rising from it. In its aggressive bid to lead the convergence of television and Internet, Microsoft won in January a contract to supply 5 million advanced set-up boxes being deployed by cable giant Tele Communications Inc, which has given preference to Microsoft over its rival Sun Microsystems. Microsoft's another rival Netscape was benefited by an earlier court order to delink Microsoft's Internet Web browser from Windows 95. Microsoft is also intelligent in tackling its adversaries and focusing on right things at right times. For example it is training its firepower not just on Sun Microsystem's Java which contributes less than $10 million to Sun's $8.6 billion in revenues. Instead, Microsoft is going after Sun's life blood: the $40 billion market for powerful Unix-based workstations and server computers.