Microsoft Courting Governments

The American election in the fall of 2000 has put a spotlight on Microsoft’s increasing interest in government. The company’s founders, with their engineering and mathematical mindset, have often found dealing effectively with government to be tougher than overcoming technical obstacles such as long boot times, preemptive multiprocessing, and “DLL Hell.” As Microsoft has grown into a global business, achieving the kind of wealth, dominance, and power that most politicians only dream about, it has also become a political football.

Microsoft has responded by paying far more attention to the political arena. Its political contributions, which were negligible a decade ago, now lead not only the software industry but all of corporate America. It encourages the managers of its subsidiaries around the world to spend time with local government officials. It has added a government-savvy member to its board of directors. While its antitrust dispute with the U.S. Department of Justice (DoJ) has clearly raised the stakes for Microsoft, the company is also coming to grips with the host of other ways in which government influences its interests, from regulating the benefits it offers employees to acquiring software and protecting intellectual property.