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Browser Wars - The Birth of a Dot Com Giant | 2

2018-11-29

Two disgruntled tech whizzes, Jim Clark and Marc Andreessen, join forces to exact revenge on the companies that wronged them, building a browser so fast and powerful that it wipes their competitors off the face of the web. In private, they call it a “Mosaic Killer,” but in public, it’s called “Netscape Navigator.”

The launch of their new browser will mark the beginning of a new era in computing, the birth of a new economy based on the web, and the moment Microsoft put a target on their backs.

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This is an unofficial transcript meant for reference. Accuracy is not guaranteed.
Wandering Jew Clark is in a sour mood, as he packs up the last boxes in his office. He looks, just fully at the desk he's called home for all these years. It's one thousand nine hundred and ninety in Clark, is a year shy. Fifty he's been out watch it from Silicon Graphics, the computer manufacturing company he co founded more than a decade ago, Not only is he out of a job he's been by his own investors, who showed him the door without a fair exit package. Forget about a gold, parachute Clark feels like been pushed off a cliff. His final day in office, a young Gee colleague gives him a hand and offers parting. Sympathy, I'm so Sorry things shook out this way. I don't Lee petty What I need or names of some crack young software engineers know waiting down the first that comes to mind, is
the guy, a MARC Andreessen. You know him Clark, doesn't it you by the internal drama at Sgi. He hasn't been paying attention to the ends and outs of web browsing, but people Silicon Valley have and Itunes created a web browser, that's moved the internet from the domain of geeks and academics into the, stream here I'll, show you how to download and reasons web browser. It's called Mosaic, as the aid leaves he looks back to see. Clark squint at the screen tentatively clicking around Clark's company known as SG. I came up with a process that transformed three dimensional computer graphics in the process. The company changed the everything from cars to jets buildings to suspension bridges are designed
gi, software enabled users to completely and accurately visualize what they wanted to build. They were a far cry from paper drawings, architectural sketches and, of course, Hollywood Films, gee. I was responsible for the special effects in movies, like Steven Spielberg's Jurassic Park, the goal of that on the tour Clark's leaving after Bitter fight Sgi, as chairman of company. He fought with ceo and his board until they forced him out still. Burning with anger. He vows to start a new venture that will make Sgi. Look like your garage hobby. He can't do it alone, though now sitting in his office, Clark marvels at what his colleagues just shown him web browser is simple. An easy to use a few minutes later
Clark finds the homepage in resume of MARC Andreessen. The browse creator his mind lights up with ideas. Oh yeah, this understand andriessen more than two decades. His junior will, I the ammunition he needs to strike back at Sgi Clark shot. Says he types in now: famous email, Mark, You may not know me, but founder and former chairman of Silicon Graphics as you I have read in the press lately, I'm leaving Sgi. The form a new company. I would to discuss the possibility of you joining me. Jim Clark, Clark's Indirect overture to Andriessen is the start of something big, their partnership mark the beginning of a new era, the law of a new economy based on the web. It will
so take Microsoft, completely by surprise, putting Tek behemoth on its heels. For now this is Definitely some exciting news. The simpsons are coming to Disney brand new streaming service Disney plus the Simpsons have become an undeniable part of television history, and this is the first time that the first thirty seasons will be available to stream completely commercial. So get excited because the Simpsons and so much more will be streaming on Disney plus beginning November 12th in the USA. From wondering I'm
brown, and this is business wars. You're. Listening to the second episode in our series, Netscape versus Microsoft, the birth of a dot com giant in the last episode, two genius university students, MARC Andreessen and Eric Bina Cream mosaic the world's first user friendly web browser Mosaic quickly went viral but the University of Illinois claimed ownership and credit. Leaving andriessen out in the cold, change, can be an effective motivator, though entry sin is about join forces with Jim Clark, another disgruntled,
Quiz together, they'll build a new, even more powerful browser, but will it be in to confront a mega rich colossal nemesis, the Almighty Microsoft in a decade before Andriessen and Clark met. Clark was computer science professor at Stanford he was in fight in the ways of business that may easily exploitable Sgi off the ground. He sold thanks to venture capitalists in several rounds of financing. He saw these moves as his only choice, but it did. Who did his equity and control intern investors brought in a ceo and kick Clark upstairs to chairman a largely symbolic position. At the same time, company revenue from millions to billions. In S. I went public. The stock price soared.
With the company. Transitioning from a scrappy startup to an established player and butting heads with SGS executive team, invest here's booted Clark out the door he leave. With a fifteen million dollar exit package a fraction What many of the other executives are worth? I rate, plots his nemesis comeuppance a hot new company that will make Sgi look like it has been no question. This is a blow to Clark but if he was going to be ejected timing couldn't be better, though, he doesn't know it Sheep and recent also looking to make a big move after the University of Illinois claim credit and ownership of his creation and recent it up and move to Silicon Valley to try his look there and he's about to
a very big break J. Newari, one thousand nine hundred and ninety four andriessen restlessly drums his fingers on his kitchen table as he opens his email play. What's this any mail from Jim Clark the Jim Clark of Sgi Clark wants to work together. Andreason is stunned. He, is how important Jim Clark is in College ST whiled away many happy hours on Sgi machines. He responds immediately this morning. They meet for breakfast in Palo Alto to plot their future, except they have no idea. What to do and re his bleary eyed in a bit. Rumpled looking doesn't matter all Clark, noses whatever it is, he wants to do it with this brilliant twenty two year old programmer. I mean
ask with Mosaic. The beauty of it is that it's made the web accessible to people by keeping things simple. That means a lot you know Under the University of Illinois, wanted bragging rights and their licensing mosaic, making millions off it doesn't Right that you don't get a dime, if it were me, I want to stick it to him. Recent nods, you feel the same way, but I just want to be done with Mosaic, I'm trying to think ahead. Yeah. We both gotta move on to the next big thing and thing, I'm certain of is that the and that is going to grow like crazy. If we can get in at the ground level of some internet business is something cheap and simple, but necessary. I think we'll have ourselves. A very healthy business This is a vision they both share. The question is: what is that internet business they spend months
sharks, palatial home in Silicon Valley, sipping wine and tossing out ideas for possible ventures but Clark, grows tired of talking. He wants action. One night in March, one thousand nine hundred and ninety four over dinner in a second bottle of burgundy, a Clark's mansion and Reese, and has a change of heart. You know what through it, Jim, the University of Illinois is making a killing off my idea. I came up with mosaic coded it with my friend Anne. It's my work that should be my business Clark, smiles, He likes where this is heading. Create a mosaic killer, All we need to do is release a better version of the browser and let it take over you think you can do that. You think you can out code yourself by now, he knows andriessen well enough to know that he can't resist a challenge like that, of course,
and I'm sure I can line up the original mosaic team to come on Board Clark pours. Another glass of burgundy and smiles Andreessen has taken the bait well Mark What are you waiting for? It? Might I'm like a foregone conclusion that these two geniuses will come up with an amazing browser. But this is by no means a sure thing. Ann Clark will need to coop is investment and like in recent Clark, is far from newcomer in the tech industry if they make a move. This big the whole valley will be watching. Should they fail well Clark? Does think he could face the humiliation article is an online only furniture company, that's keeping prices low and quality high, by eliminating the layers of traditional retail, that means you go online. You fall in
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and the discount will automatically be applied at checkout, one more time article dot com bw, to get fifty dollars off your first purchase of one hundred dollars or more. Whether your reaction is woo, hoo, excellent or aye caramba. This is definitely some exciting news. The since are coming to Disney's brand new streaming service Disney plus the Simpsons is the longest running primetime scripted television series in history. It's one hundred and thirty, four Emmys, including outstanding animated program. In two thousand and nineteen, the series has become a television history, and this is the first time that the first thirty seasons will be available to stream completely commercial free. That six hundred and sixty two episodes of the Simpsons
Commercial free want to relive the in 90s and head back to Homerpalooza well Disney Plus. Has that episode want to watch the episode Marge versus the monorail, and they have that to all these iconic moments will be available on Disney plus starting November 12th, so get excited because the Simpsons and so much more will be streaming on Disney plus beginning November 12th in the Yes, the months since Andriessen left for sunny California life for his friend. Back in Illinois has become down gloomy the calling management at the University of Illinois Supercomputing Center. The politburo, the students free get called to interminable meetings with forty people and everyone seems to outrank them
and recent emails, his former comrades in code, telling them to pack their bags because he and Jim Clark, yes, the Jim Clark, are teaming up hey look at this is from Mark he's got a new project sounds like there's real money behind. It really Well, I'm in time to get the hell out of here, invitation electrified there beyond ready to leave the university gulag, the team of universe champion. Coders reassemble in Silicon Valley and Clark incorporates Mosaic communications in mountain view, CA, Clark, anti three million dollars about twenty percent of his net worth and rents office space, the place is about is a corporate as you can get the programmers, transfixed by their screen sitting around in t shirts and underwear and arguing about everything from politics to sport, they lose track What day it is, in other words,
your typical Silicon Valley, startup. Programmers realize they're part of history at the I a new digital age? They like in themselves to Thomas Edison or Eli, Whitney inventors who revolutionized entire industries changing the internets accessibility is Joe. Does monumental to become a mass market product browser will have, to course, over phone lines and into pcs with slug modems speed in economy are crucial features, since stream users, are already saddled with slow computers and modems the programmers, use a stop watch to clock the new browsers, download and browsing speed against mosaics, ready set go and stop. Do we beat our time it's ten times faster than mosaic, and
Vision is anointed, vice president of thinking up stuff and, typically never leaves headquarters He leads by example, urging his engineers to press on summer. Seeps into fall and the company continues to expand, not only its personnel, but the number of products that will offer server and security, software and e commerce application and, of course the browser which is the linchpin product manager? Greg sands is the one who comes up with the name of the new company Netscape communication corporation, and the browser it will be known as the navigator fall. Nineteen the four mountain view, California, the big debate we did an early board meeting is over pricing the head of mark is from Apple, a company with a traditional business model, charge premium price if you can get away with it, Netscape
Navigator is so much better than any browser that has come before it. By a long shot, people will be willing to pay for it to get online we have something. Nobody else does I say we charge. Ninety nine dollars a pop and not having it that might work for Apple May when for us we're not selling anything physical. What proposing market. We give it away for free, Actually, what I'm proposing If we give it away, we can spread virally and create a huge base. We want to be everywhere. We can do that. Will not mosaic right off of web If we do that, we'll spend a lot of money just to make no money. How does this make sense? there's a model for this look at Microsoft. They early lead with their operating system and turned it into worldwide dominance of the entire computer industry. The room considers this. And recent presses on so vendors created applications for Microsoft's operating system
and ignore the rest and the rest faded away. Look: it's market share today equals revenue later get it. So you're willing to pay now for profits later yep. That's the theory anyway. And no one is feeling the pressure more acutely than Clark and fronting the money we Just better hope. We can figure out a revenue stream when we do have that market share nobody's, figured out how to make money off the internet, yet We will, we will have a network has to begin somewhere and with the network form. People business opportunities in Sioux, the web, will be the same way. The eating. Exec looks unconvinced, mark Get that to succeed. We have to get this on as many machines as possible. But this is all a pointless exercise. If we can't make money off of it it gives andriessen a look
N Andriessen gets it. He knows can't just blow off marketing? Finally, they reach a compromise and recent calls it free, but free. They will give away Netscape navigator to students and educators and Shar. Is everyone else, thirty, nine dollars. Even then, they offer a ninety day free trial that wins the day. The engineers press Netscape navigator looks like it will sail past Mosaic. Not only is it faster, it's more secure and less crashing and user we can create far more complicated web page layouts, but on the as is important, is all this whiz. Bang stuff is the way who will be able to pay for goods and services online. This system will encrypt credit card numbers and that will be crucial for e commerce to bloom.
It's late on October 13th, one thousand nine hundred and ninety four, the team tinkered and toiled. The moment of truth has arrived. The public unveiling Ok, the beta versions of the browser are posted online, now wait and watch a fuse. Stomach churning minutes later someone Japan, downloads, it a trickle of downloads becomes a stream then a geyser someone on the Netscape team, Jerry Rigs, an alarm system to keep track of Bell for maximum for PC's an explosion for the Unix operating system. This, quickly turns into a drinking game the team? drinks. Every time they hear a moo and moving is drowning out. The rest, as the pc version pulls ahead. In a few hours, ten thousand copies of the browser are downloaded with.
Virtually no advertising or marketing from the early numbers on that late and drunken night October. The team knows Netscape has the world's attention there in three yes is short lived. However, the University of Illinois, Mosaic team, is also in celebration: mode, mosaic content, is to spread it now accounts for sixty percent of all web traffic and the university license. Is it to companies for one hundred thousand dollars But the University of Illinois doesn't stop there retains lawyers who will Andreessen and Clark or infringing on its intellectual property, claiming that Andreessen still all the software, he himself created an university executives aren't the only ones looking to bury Netscape's browser before it gets off the ground. There's another company
with the size and funds to launch a competitor and a word strategy and it's a far ride from andresens hopeful model of give it away for free that company is Microsoft, next time on business wars. We travel back to one thousand nine hundred and seventy four two nerd make a life altering phone call that launches the single computer software revolution by mid 90s the duo bill Gates and Paul Allen have joy forces with Steve, Ballmer and head up Microsoft. Multibillion dollar company but they won't hang on to their advantage forever. They've The browser wars late and they face It's an unexpected upstart. From wondering this
Business works. We hope you enjoy this episode and we invite you to subscribe on Apple podcast, Spotify, Google, podcasts stitcher, I heart radio or where ever you listen to podcasts, there's a link on the episode notes and you can tap or swipe over the cover art to find it. You'll also see some offers from our sponsors and, if you'd like to support our show, then we invite you to support them. If you like what you heard, we love it. If you could give us a five star rating and don't forget to tell your friends how to subscribe to another way you can support us just answer short survey at one tree, dot, com, slash survey and while you're there don't forget to tell us what business were stories you'd like to hear quick, about conversations you've been hearing. We can't know exactly what was said, but this dialogue is based on our best research. David Brown. Adam Penenberg wrote this story by Emily Frost, Karen Lowe, is our senior producer and editor Jenny. Lauer is our producer, sound design by Bay Area, sound. Our
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Transcript generated on 2019-11-11.