Microsoft, intent on its mission to destroy Netscape, rolled out across the industry with all the subtlety and attendant goodwill of Germany invading Poland…

— Merrill R. Chapman

No one reacted more excitedly to the talk of Java as the dawn of a whole new way of computing than did the folks at Netscape. Marc Andreessen, whose head had swollen exactly as much as the average 24-year-old’s would upon being repeatedly called a great engineer, businessman, and social visionary all rolled into one, was soon proclaiming Netscape Navigator to be far more than just a Web browser: it was general-purpose computing’s next standard platform, possibly the last one it would ever need. Java, he said, generously sharing the credit for this development, was “as revolutionary as the Web itself.” As for Microsoft Windows, it was merely “a poorly debugged set of device drivers.” Many even inside Netscape wondered whether he was wise to poke the bear from Redmond so, but he was every inch a young man feeling his oats.

Just two weeks before the release of Windows 95, the United States Justice Department had ended a lengthy antitrust investigation of Microsoft’s business practices with a decision not to bring any charges. Bill Gates and his colleague took this to mean it was open season on Netscape.

Thus, just a few weeks after the bravura Windows 95 launch, a war that would dominate the business and computing press for the next three years began. The opening salvo from Microsoft came in a weirdly innocuous package: something called the “Windows Plus Pack,” which consisted mostly of slightly frivolous odds and ends that hadn’t made it into the main Windows 95 distribution — desktop themes, screensavers, sound effects, etc. But it also included the very first release of Microsoft’s own Internet Explorer browser, the fruit of the deal with Spyglass. After you put the Plus! CD into the drive and let the package install itself, it was as hard to get rid of Internet Explorer as it was a virus. For unlike all other applications, there appeared no handy “uninstall” option for Internet Explorer. Once it had its hooks in your computer, it wasn’t letting go for anything. And its preeminent mission in life there seemed to be to run roughshod over Netscape Navigator. It inserted itself in place of its arch-enemy in your file associations and everywhere else, so that it kept turning up like a bad penny every time you clicked a link. If you insisted on bringing up Netscape Navigator in its stead, you were greeted with the pointed “suggestion” that Internet Explorer was the better, more stable option.

Microsoft’s biggest problem at this juncture was that that assertion didn’t hold water; Internet Explorer 1.0 was only a modest improvement over the old NCSA Mosaic browser on whose code it was based. Meanwhile Netscape was pushing aggressively forward with its vision of the browser as a platform, a home for active content of all descriptions. Netscape Navigator 2.0, whose first beta release appeared almost simultaneously with Internet Explorer 1.0, doubled down on that vision by including an email and Usenet client. More importantly, it supported not only Java but a second programming language for creating active content on the Web — a language that would prove much more important to the evolution of the Web in the long run.

Even at this early stage — still four months before Sun would deign to grant Java its own 1.0 release — some of the issues with using it on the Web were becoming clear: namely, the weight of the virtual machine that had to be loaded and started before a Java applet could run, and said applet’s inability to communicate easily with the webpage that had spawned it. Netscape therefore decided to create something that lay between the static simplicity of vanilla HTML and the dynamic complexity of Java. The language called JavaScript would share much of its big brother’s syntax, but it would be interpreted rather than compiled, and would live in the same environment as the HTML that made up a webpage rather than in a sandbox of its own. In fact, it would be able to manipulate that HTML directly and effortlessly, changing the page’s appearance on the fly in response to the user’s actions. The idea was that programmers would use JavaScript for very simple forms of active content — like, say, a popup photo gallery or a scrolling stock ticker — and use Java for full-fledged in-browser software applications — i.e., your word processors and the like.

In contrast to Java, a compiled language walled off inside its own virtual machine, JavaScript is embedded directly into the HTML that makes up a webpage, using the handy “<script>” tag.

​There’s really no way to say this kindly: JavaScript was (and is) a pretty horrible programming language by any objective standard. Unlike Java, which was the product of years of thought, discussion, and experimentation, JavaScript was the very definition of “quick and dirty” in a computer-science context. Even its principal architect Brendan Eich doesn’t speak of it like an especially proud parent; he calls it “Java’s dumb little brother” and “a rush job.” Which it most certainly was: he designed and implemented JavaScript from scratch in a matter of bare weeks.

What he ended up with would revolutionize the Web not because it was good, but because it was good enough, filling a craving that turned out to be much more pressing and much more satisfiable in the here and now than the likes of in-browser word processing. The lightweight JavaScript could be used to bring the Web alive, to make it a responsive and interactive place, more quickly and organically than the heavyweight Java. Once JavaScript had reached a critical mass in that role, it just kept on rolling with all the relentlessness of a Microsoft operating system. Today an astonishing 98 percent of all webpages contain at least a little bit of JavaScript in addition to HTML, and a cottage industry has sprung up to modify and extend the language — and attempt to fix the many infelicities that haunt the sleep of computer-science professors all over the world. JavaScript has become, in other words, the modern world’s nearest equivalent to what BASIC was in the 1980s, a language whose ease of use, accessibility, and populist appeal make up for what it lacks in elegance. These days we even do online word processing in JavaScript. If you had told Brendan Eich that that would someday be the case back in 1995, he would have laughed as loud and long at you as anyone.

Although no one could know it at the time, JavaScript also represents the last major building block to the modern Web for which Marc Andreessen can take a substantial share of the credit, following on from the “image” tag for displaying inline graphics, the secure sockets layer (SSL) for online encryption (an essential for any form of e-commerce), and to a lesser extent the Java language. Microsoft, by contrast, was still very much playing catch-up.

Nevertheless, on December 7, 1995 — the symbolism of this anniversary of the United States’s entry into World War II was lost on no one — Bill Gates gave a major address to the Microsoft faithful and assembled press, in which he made it clear that Microsoft was in the browser war to win it. In addition to announcing that his company too would bite the bullet and license Java for Internet Explorer, he said that the latter browser would no longer be a Windows 95 exclusive, but would soon be made available for Windows 3 and even MacOS as well. And everywhere it appeared, it would continue to sport the very un-Microsoft price tag of free, proof that this old dog was learning some decidedly new tricks for achieving market penetration in this new era of online software distribution. “When we say the browser’s free, we’re saying something different from other people,” said Gates, in a barbed allusion to Netscape’s shareware distribution model. “We’re not saying, ‘You can use it for 90 days,’ or, ‘You can use it and then maybe next year we’ll charge you a bunch of money.'” Netscape, whose whole business revolved around its browser, couldn’t afford to give Navigator away, a fact of which Gates was only too well aware. (Some pundits couldn’t resist contrasting this stance with Gates’s famous 1976 “Open Letter To Hobbyists,” in which he had asked, “Who can afford to do professional work for nothing?” Obviously Microsoft now could…)

Netscape’s stock price dropped by $28.75 that day. For Microsoft’s research budget alone was five times the size of Netscape’s total annual revenues, while the bigger company now had more than 800 people — twice Netscape’s total headcount — working on Internet Explorer alone. Marc Andreessen could offer only vague Silicon Valley aphorisms when queried about these disparities: “In a fight between a bear and an alligator, what determines the victor is the terrain” — and Microsoft, he claimed, had now moved “onto our terrain.” The less abstractly philosophical Larry Ellison, head of the database giant Oracle and a man who had had more than his share of run-ins with Bill Gates in the past, joked darkly about the “four stages” of Microsoft stealing someone else’s innovation. Stage 1: to “ridicule” it. Stage 2: to admit that, “yeah, there are a few interesting ideas here.” Stage 3: to make its own version. Stage 4: to make the world forget that the non-Microsoft version had ever existed.

Yet for the time being the Netscape tail continued to wag the Microsoft dog. A more interactive and participatory vision of the Web, enabled by the magic of JavaScript, was spreading like wildfire by the middle of 1996. You still needed Netscape Navigator to experience this first taste of what would eventually be labelled Web 2.0, a World Wide Web that blurred the lines between readers and writers, between content consumers and content creators. For if you visited one of these cutting-edge sites with Internet Explorer, it simply wouldn’t work. Despite all of Microsoft’s efforts, Netscape in June of 1996 could still boast of a browser market share of 85 percent. Marc Andreessen’s Sun Tzu-lite philosophy appeared to have some merit to it after all; his company was by all indications still winning the browser war handily. Even in its 2.0 incarnation, which had been released at about the same time as Gates’s Pearl Harbor speech, Internet Explorer remained something of a joke among Windows users, the annoying mother-in-law you could never seem to get rid of once she showed up.

But then, grizzled veterans like Larry Ellison had seen this movie before; they knew that it was far too early to count Microsoft out. That August, both Netscape and Microsoft released 3.0 versions of their browsers. Netscape’s was a solid evolution of what had come before, but contained no game changers like JavaScript. Microsoft’s, however, was a dramatic leap forward. In addition to Java support, it introduced JScript, a lightweight scripting language that just so happened to have the same syntax as JavaScript. At a stroke, all of those sites which hadn’t worked with earlier versions of Internet Explorer now displayed perfectly well in either browser.

With his browser itself more or less on a par with Netscape’s, Bill Gates decided it was time to roll out his not-so-secret weapon. In October of 1996, Microsoft began shipping Windows 95’s “Service Pack 2,” the second substantial revision of the operating system since its launch. Along with a host of other improvements, it included Internet Explorer. From now on, the browser would ship with every single copy of Windows 95 and be installed automatically as part of the operating system, whether the user wanted it or not. New Windows users would have to make an active choice and then an active effort to go to Netscape’s site — using Internet Explorer, naturally! — and download the “alternative” browser. Microsoft was counting on the majority of these users not knowing anything about the browser war and/or just not wanting to be bothered.

Microsoft employed a variety of carrots and sticks to pressure other companies throughout the computing ecosystem to give or at the bare minimum to recommend Internet Explorer to their customers in lieu of Netscape Navigator. It wasn’t above making the favorable Windows licensing deals it signed with big consumer-computer manufacturers like Compaq dependent on precisely this. But the most surprising pact by far was the one Microsoft made with America Online (AOL).

Relations between the face of the everyday computing desktop and the face of the Internet in the eyes of millions of ordinary Americans had been anything but cordial in recent years. Bill Gates had reportedly told Steve Case, his opposite number at AOL, that he would “bury” him with his own Microsoft Network (MSN). Meanwhile Case had complained long and loud about Microsoft’s bullying tactics to the press, to the point of mooting a comparison between Gates and Adolf Hitler on at least one occasion. Now, though, Gates was willing to eat crow and embrace AOL, even at the expense of his own MSN, if he could stick it to Netscape in the process.

For its part, AOL had come as far as it could with its Booklink browser. The Web was evolving too rapidly for the little development team it had inherited with that acquisition to keep up. Case grudgingly accepted that he needed to offer his customers one of the Big Two browsers. All of his natural inclinations bent toward Netscape. And indeed, he signed a deal with Netscape to make Navigator the browser that shipped with AOL’s turnkey software suite — or so Netscape believed. It turned out that Netscape’s lawyers had overlooked one crucial detail: they had never stipulated exclusivity in the contract. This oversight wasn’t lost on the interested bystander Microsoft, which swooped in immediately to take advantage of it. AOL soon announced another deal, to provide its customers with Internet Explorer as well. Even worse for Netscape, this deal promised Microsoft not only availability but priority: Internet Explorer would be AOL’s recommended, default browser, Netscape Navigator merely an alternative for iconoclastic techies (of which there were, needless to say, very few in AOL’s subscriber base).

What did AOL get in return for getting into bed with Adolf Hitler and “jilting Netscape at the altar,” as the company’s own lead negotiator would later put it? An offer that was impossible for a man with Steve Case’s ambitions to refuse, as it happened. Microsoft would put an AOL icon on the desktop of every new Windows 95 installation, where the hundreds of thousands of Americans who were buying a computer every month in order to check out this Internet thing would see it sitting there front and center, and know, thanks to AOL’s nonstop advertising blitz, that the wonders of the Web were just one click on it away. It was a stunning concession on Microsoft’s part, not least because it came at the direct cost of MSN, the very online network Bill Gates had originally conceived as his method of “burying” AOL. Now, though, no price was too high to pay in his quest to destroy Netscape.

Which raises the question of why he was so obsessed, given that Microsoft was making literally no money from Internet Explorer. The answer is rooted in all that rhetoric that was flying around at the time about the browser as a computing platform — about the Web effectively turning into a giant computer in its own right, floating up there somewhere in the heavens, ready to give a little piece of itself to anyone with a minimalist machine running Netscape Navigator. Such a new world order would have no need for a Microsoft Windows — perish the thought! But if, on the other hand, Microsoft could wrest the title of leading browser developer out of the hands of Netscape, it could control the future evolution of this dangerously unruly beast known as the World Wide Web, and ensure that it didn’t encroach on its other businesses.

That the predictions which prompted Microsoft’s downright unhinged frenzy to destroy Netscape were themselves wildly overblown is ironic but not material. As tech journalist Merrill R. Chapman has put it, “The prediction that anyone was going to use Navigator or any other browser anytime soon to write documents, lay out publications, build budgets, store files, and design presentations was a fantasy. The people who made these breathless predictions apparently never tried to perform any of these tasks in a browser.” And yet in an odd sort of way this reality check didn’t matter. Perception can create its own reality, and Bill Gates’s perception of Netscape Navigator as an existential threat to the software empire he had spent the last two decades building was enough to make the browser war feel like a truly existential clash for both parties, even if the only one whose existence actually was threatened — urgently threatened! — was Netscape. Jim Clark, Marc Andreessen’s partner in founding Netscape, makes the eyebrow-raising claim that he “knew we were dead” in the long run well before the end of 1996, when the Department of Justice declined to respond to an urgent plea on Netscape’s part to take another look at Microsoft’s business practices.

Perhaps the most surprising aspect of the conflict is just how long Netscape’s long run proved to be. It was in most respects David versus Goliath: Netscape in 1996 had $300 million in annual revenues to Microsoft’s nearly $9 billion. But whatever the disparities of size, Netscape had built up a considerable reservoir of goodwill as the vehicle through which so many millions had experienced the Web for the first time. Microsoft found this soft power oddly tough to overcome, even with a browser of its own that was largely identical in functional terms. A remarkable number of people continued to make the active choice to use Netscape Navigator instead of the passive one to use Internet Explorer. By October of 1997, one year after Microsoft brought out the big gun and bundled Internet Explorer right into Windows 95, its browser’s market share had risen as high as 39 percent — but it was Netscape that still led the way at 51 percent.

Yet Netscape wasn’t using those advantages it did possess all that effectively. It was not a happy or harmonious company: there were escalating personality clashes between Jim Clark and Marc Andreessen, and also between Andreessen and his programmers, who thought their leader had become a glory hound, too busy playing the role of the young dot.com millionaire to pay attention to the vital details of software development. Perchance as a result, Netscape’s drive to improve its browser in paradigm-shifting ways seemed to slowly dissipate after the landmark Navigator 2.0 release.

Netscape, so recently the darling of the dot.com age, was now finding it hard to make a valid case for itself merely as a viable business. The company’s most successful quarter in financial terms was the third of 1996 — just before Internet Explorer became an official part of Windows 95 — when it brought in $100 million in revenue. Receipts fell precipitously after that point, all the way down to just $18.5 million in the last quarter of 1997. By so aggressively promoting Internet Explorer as entirely and perpetually free, Bill Gates had, whether intentionally or inadvertently, instilled in the general public an impression that all browsers were or ought to be free, due to some unstated reason inherent in their nature. (This impression has never been overturned, as has been testified over the years by the failure of otherwise worthy commercial browsers like Opera to capture much market share.) Thus even the vast majority of those who did choose Netscape’s browser no longer seemed to feel any ethical compulsion to pay for it. Netscape was left in a position all too familiar to Web firms of the past and present alike: that of having immense name recognition and soft power, but no equally impressive revenue stream to accompany them. It tried frantically to pivot into back-end server architecture and corporate intranet solutions, but its efforts there were, as its bottom line will attest, not especially successful. It launched a Web portal and search engine known as Netcenter, but struggled to gain traction against Yahoo!, the leader in that space. Both Jim Clark and Marc Andreessen sold off large quantities of their personal stock, never a good sign in Silicon Valley.

Netscape Navigator was renamed Netscape Communicator for its 4.0 release in June of 1997. As the name would imply, Communicator was far more than just a browser, or even just a browser with an integrated email client and Usenet reader, as Navigator had been since version 2.0. Now it also sported an integrated editor for making your own websites from scratch, a real-time chat system, a conference caller, an appointment calendar, and a client for “pushing” usually unwanted content to your screen. It was all much, much too much, weighted down with features most people would never touch, big and bloated and slow and disturbingly crash-prone; small wonder that even many Netscape loyalists chose to stay with Navigator 3 after the release of Communicator. Microsoft had not heretofore been known for making particularly svelte software, but Internet Explorer, which did nothing but browse the Web, was a lean ballerina by comparison with the lumbering Sumo wrestler that was Netscape Communicator. The original Netscape Navigator had sprung from the hacker culture of institutional computing, but the company had apparently now forgotten one of that culture’s key dictums in its desire to make its browser a platform unto itself: the best programs are those that do only one thing, but do that one thing very, very well, leaving all of the other things to other programs.

Netscape Communicator. I’m told that there’s an actual Web browser buried somewhere in this pile. Probably a kitchen sink too, if you look hard enough.

Luckily for Netscape, Internet Explorer 4.0, which arrived three months after Communicator, violated the same dictum in an even more inept way. It introduced what Microsoft called the “Active Desktop,” which let it bury its hooks deeper than ever into Windows itself. The Active Desktop was — or tried to be —  Bill Gates’s nightmare of a Web that was impossible to separate from one’s local computer come to life, but with Microsoft’s own logo on it. Ironically, it blurred the distinction between the local computer and the Internet more thoroughly than anything the likes of Sun or Netscape had produced to date; local files and applications became virtually indistinguishable from those that lived on the Internet in the new version of the Windows desktop it installed in place of the old. The end result served mainly to illustrate how half-baked all of the prognostications about a new era of computing exclusively in the cloud really were. The Active Desktop was slow and clumsy and confusing, and absolutely everyone who was exposed to it seemed to hate it and rush to find a way to turn it off. Fortunately for Microsoft, it was possible to do so without removing the Internet Explorer 4 browser itself.

The dreaded Active Desktop. Surprisingly, it was partially defended on philosophical grounds by Tim Berners-Lee, not normally a fan of Microsoft. “It was ridiculous for a person to have two separate interfaces, one for local information (the desktop for their own computer) and one for remote information (a browser to reach other computers),” he writes. “Why did we need an entire desktop for our own computer, but only get little windows through which to view the rest of the planet? Why, for that matter, should we have folders on our desktop but not on the Web? The Web was supposed to be the universe of all accessible information, which included, especially, information that happened to be stored locally. I argued that the entire topic of where information was physically stored should be made invisible to the user.” For better or for worse, though, the public didn’t agree. And even he had to allow that “this did not have to imply that the operating system and browser should be the same program.”

The Active Desktop damaged Internet Explorer’s reputation, but arguably not as badly as Netscape’s had been damaged by the bloated Communicator. For once you turned off all that nonsense, Internet Explorer 4 proved to be pretty good at doing the rest of its job. But there was no similar method for trimming the fat from Netscape Communicator.

While Microsoft and Netscape, those two for-profit corporations, had been vying with one another for supremacy on the Web, another, quieter party had been looking on with great concern. Before the Web had become the hottest topic of the business pages, it had been an idea in the head of the mild-mannered British computer scientist Tim Berners-Lee. He had built the Web on the open Internet, using a new set of open standards; his inclination had never been to control his creation personally. It was to be a meeting place, a library, a forum, perhaps a marketplace if you liked — but always a public commons. When Berners-Lee formed the non-profit World Wide Web Consortium (W3C) in October of 1994 in the hope of guiding an orderly evolution of the Web that kept it independent of the moneyed interests rushing to join the party, it struck many as a quaint endeavor at best. Key technologies like Java and JavaScript appeared and exploded in popularity without giving the W3C a chance to say anything about them. (Tellingly, the word “JavaScript” never even appears in Berners-Lee’s 1999 book about his history with and vision for the Web, despite the scripting language’s almost incalculable importance to making it the dynamic and diverse place it had become by that point.)

From the days when he had been a mere University of Illinois student making a browser on the side, Marc Andreessen had blazed his own trail without giving much thought to formal standards. When the things he unilaterally introduced proved useful, others rushed to copy them, and they became de-facto standards. This was as true of JavaScript as it was of anything else. As we’ve seen, it began as a Netscape-exclusive feature, but was so obviously transformative to what the Web could do and be that Microsoft had no choice but to copy it, to incorporate its own implementation of it into Internet Explorer.

But JavaScript was just about the last completely new feature to be rolled out and widely adopted in this ad-hoc fashion. As the Web reached a critical mass, with Netscape Navigator and Internet Explorer both powering users’ experiences of it in substantial numbers, site designers had a compelling reason not to use any technology that only worked on the one or the other; they wanted to reach as many people as possible, after all. This brought an uneasy sort of equilibrium to the Web.

Nevertheless, the first instinct of both Netscape and Microsoft remained to control rather than to share the Web. Both companies’ histories amply demonstrated that open standards meant little to them; they preferred to be the standard. What would happen if and when one company won the browser war, as Microsoft seemed slowly to be doing by 1997, what with the trend lines all going in its favor and Netscape in veritable financial free fall? Once 90 percent or more of the people browsing the Web were doing so with Internet Explorer, Microsoft would be free to give its instinct for dominance free rein. With an army of lawyers at its beck and call, it would be able to graft onto the Web proprietary, patented technologies that no upstart competitor would be able to reverse-engineer and copy, and pragmatic website designers would no longer have any reason not to use them, if they could make their sites better. And once many or most websites depended on these features that were available only in Internet Explorer, that would be that for the open Web. Despite its late start, Microsoft would have managed to embrace, extend, and in a very real sense destroy Tim Berners-Lee’s original vision of a World Wide Web. The public commons would have become a Microsoft-branded theme park.

These worries were being bandied about with ever-increasing urgency in January of 1998, when Netscape made what may just have been the most audacious move of the entire dot.com boom. Like most such moves, it was born of sheer desperation, but that shouldn’t blind us to its importance and even bravery. First of all, Netscape made its browser free as in beer, finally giving up on even asking people to pay for the thing. Admittedly, though, this in itself was little more than an acceptance of the reality on the ground, as it were. It was the other part of the move that really shocked the tech world: Netscape also made its browser free as in freedom — it opened up its source code to all and sundry. “This was radical in its day,” remembers Mitchell Baker, one of the prime drivers of the initiative at Netscape. “Open source is mainstream now; it was not then. Open source was deep, deep, deep in the technical community. It never surfaced in a product. [This] was a very radical move.”

Netscape spun off a not-for-profit organization, led by Baker and called Mozilla, after a cartoon dinosaur that had been the company’s office mascot almost from day one. Coming well before the Linux operating system began conquering large swaths of corporate America, this was to be open source’s first trial by fire in the real world. Mozilla was to concentrate on the core code required for rendering webpages — the engine room of a browser, if you will. Then others — not least among them the for-profit arm of Netscape — would build the superstructures of finished applications around that sturdy core.

Alas, Netscape the for-profit company was already beyond saving. If anything, this move only hastened the end; Netscape had chosen to give away the one product it had that some tiny number of people were still willing to pay for. Some pundits talked it up as a dying warrior’s last defiant attempt to pass the sword to others, to continue the fight against Microsoft and Internet Explorer: “From the depths of Hell, I spit at thee!” Or, as Tim Berners-Lee put it more soberly: “Microsoft was bigger than Netscape, but Netscape was hoping the Web community was bigger than Microsoft.” And there may very well be something to these points of view. But regardless of the motivations behind it, the decision to open up Netscape’s browser proved both a landmark in the history of open-source software and a potent weapon in the fight to keep the Web itself open and free. Mozilla has had its ups and downs over the years since, but it remains with us to this day, still providing an alternative to the corporate-dominated browsers almost a quarter-century on, having outlived the more conventional corporation that spawned it by a factor of six.

Mozilla’s story is an important one, but we’ll have to leave the details of it for another day. For now, we return to the other players in today’s drama.

While Microsoft and Netscape were battling one another, AOL was soaring into the stratosphere, the happy beneficiary of Microsoft’s decision to give it an icon on the Windows 95 desktop in the name of vanquishing Netscape. In 1997, in a move fraught with symbolic significance, AOL bought CompuServe, its last remaining competitor from the pre-Web era of closed, proprietary online services. By the time Netscape open-sourced its browser, AOL had 12 million subscribers and annual profits — profits, mind you, not revenues — of over $500 million, thanks not only to subscription fees but to the new frontier of online advertising, where revenues and profits were almost one and the same. At not quite 40 years old, Steve Case had become a billionaire.

“AOL is the Internet blue chip,” wrote the respected stock analyst Henry Blodget. And indeed, for all of its association with new and shiny technology, there was something comfortingly stolid — even old-fashioned — about the company. Unlike so many of his dot.com compatriots, Steve Case had found a way to combine name recognition and a desirable product with a way of getting his customers to actually pay for said product. He liked to compare AOL with a cable-television provider; this was a comparison that even the most hidebound investors could easily understand. Real, honest-to-God checks rolled into AOL’s headquarters every month from real, honest-to-God people who signed up for real, honest-to-God paid subscriptions. So what if the tech intelligentsia laughed and mocked, called AOL “the cockroach of cyberspace,” and took an “@AOL.com” suffix on someone’s email address as a sign that they were too stupid to be worth talking to? Case and his shareholders knew that money from the unwashed masses spent just as well as money from the tech elites.

Microsoft could finally declare victory in the browser war in the summer of 1998, when the two browsers’ trend lines crossed one another. At long last, Internet Explorer’s popularity equaled and then rapidly eclipsed that of Netscape Navigator/Communicator. It hadn’t been clean or pretty, but Microsoft had bludgeoned its way to the market share it craved.

A few months later, AOL acquired Netscape through a stock swap that involved no cash, but was worth a cool $9.8 billion on paper — an almost comical sum in relation to the amount of actual revenue the purchased company had brought in during its lifetime. Jim Clark and Marc Andreessen walked away very, very rich men. Just as Netscape’s big IPO had been the first of its breed, the herald of the dot.com boom, Netscape now became the first exemplar of the boom’s unique style of accounting, which allowed people to get rich without ever having run a profitable business.

Even at the time, it was hard to figure out just what it was about Netscape that AOL thought was worth so much money. The deal is probably best understood as a product of Steve Case’s fear of a Microsoft-dominated Web; despite that AOL icon on the Windows desktop, he still didn’t trust Bill Gates any farther than he could throw him. In the end, however, AOL got almost nothing for its billions. Netscape Communicator was renamed AOL Communicator and offered to the service’s subscribers, but even most of them, technically unsophisticated though they tended to be, could see that Internet Explorer was the cleaner and faster and just plain better choice at this juncture. (The open-source coders working with Mozilla belatedly realized the same; they would wind up spending years writing a brand-new browser engine from scratch after deciding that Netscape’s just wasn’t up to snuff.)

Most of Netscape’s remaining engineers walked soon after the deal was made. They tended to describe the company’s meteoric rise and fall in the terms of a Shakespearean tragedy. “At least the old timers among us came to Netscape to change the world,” lamented one. “Getting killed by the Evil Empire, being gobbled up by a big corporation — it’s incredibly sad.” If that’s painting with rather too broad a brush — one should always run away screaming when a Silicon Valley denizen starts talking about “changing the world” — it can’t be denied that Netscape at no time enjoyed a level playing field in its war against Microsoft.

But times do change, as Microsoft was about to learn to its cost. In May of 1998, the Department of Justice filed suit against Microsoft for illegally exploiting its Windows monopoly in order to crush Netscape. The suit came too late to save the latter, but it was all over the news even as the first copies of Windows 98, the hotly anticipated successor to Windows 95, were reaching store shelves. Bill Gates had gotten his wish; Internet Explorer and Windows were now indissolubly bound together. Soon he would have cause to wish that he had not striven for that outcome quite so vigorously.

(Sources: the books Overdrive: Bill Gates and the Race to Control Cyberspace by James Wallace, The Silicon Boys by David A. Kaplan, Architects of the Web by Robert H. Reid, Competing on Internet Time: Lessons from Netscape and Its Battle with Microsoft by Michael Cusumano and David B. Yoffie, dot.con: The Greatest Story Ever Sold by John Cassidy, Stealing Time: Steve Case, Jerry Levin, and the Collapse of AOL Time Warner by Alec Klein, Fools Rush In: Steve Case, Jerry Levin, and the Unmaking of AOL Time Warner by Nina Munk, There Must be a Pony in Here Somewhere: The AOL Time Warner Debacle by Kara Swisher, In Search of Stupidity: Over Twenty Years of High-Tech Marketing Disasters by Merrill R. Chapman, Coders at Work: Reflections on the Craft of Programming by Peter Seibel, and Weaving the Web by Tim Berners-Lee. Online sources include “1995: The Birth of JavaScript” at Web Development History, the New York Times timeline of AOL’s history, and Mitchell Baker’s talk about the history of Mozilla, which is available on Wikipedia.)

On August 6, 1991, when Microsoft was still in the earliest planning stages of creating the operating system that would become known as Windows 95, an obscure British researcher named Tim Berners-Lee, working out of the Conseil Européen pour la Recherche Nucléaire (CERN) in Switzerland, put the world’s first publicly accessible website online. For years to come, these two projects would continue to evolve separately, blissfully unconcerned by if not unaware of one another’s existence. And indeed, it is difficult to imagine two computing projects with more opposite personalities. Mirroring its co-founder and CEO Bill Gates, Microsoft was intensely pragmatic and maniacally competitive. Tim Berners-Lee, on the other hand, was a classic academic, a theorist and idealist rather than a businessman. The computers on which he and his ilk built the early Web ran esoteric operating systems like NeXTSTEP and Unix, or at their most plebeian MacOS, not Microsoft’s mass-market workhorse Windows. Microsoft gave you tools for getting everyday things done, while the World Wide Web spent the first couple of years of its existence as little more than an airy proof of concept, to be evangelized by wide-eyed adherents who often appeared to have read one too many William Gibson novels. Forbes magazine was soon to anoint Bill Gates the world’s richest person, his reward for capturing almost half of the international software market; the nascent Web was nowhere to be found in the likes of Forbes.

Those critics who claim that Microsoft was never a visionary company — that it instead thrived by letting others innovate, then swooping in and taking taking over the markets thus opened — love to point to its history with the World Wide Web as Exhibit Number One. Despite having a role which presumably demanded that he stay familiar with all leading-edge developments in computing, Bill Gates by his own admission never even heard of the Web until April of 1993, twenty months after that first site went up. And he didn’t actually surf the Web for himself until another six months after that — perhaps not coincidentally, shortly after a Windows version of NCSA Mosaic, the user-friendly graphical browser that made the Web a welcoming place even for those whose souls didn’t burn with a passion for information theory, had finally been released.

Gates focused instead on a different model of online communication, one arguably more in keeping with his instincts than was the free and open Web. For almost a decade and a half by 1993, various companies had been offering proprietary dial-up services aimed at owners of home computers. These came complete with early incarnations of many of the staples of modern online life: email, chat lines, discussion forums, online shopping, online banking, online gaming, even online dating. They were different from the Web in that they were walled gardens that provided no access to anything that lay beyond the big mainframes that hosted them. Yet within their walls lived bustling communities whose citizens paid their landlords by the minute for the privilege of participation.

The 500-pound gorilla of this market had always been CompuServe, which had been in the business since the days when a state-of-the-art home computer had 16 K of memory and used cassette tapes for storage. Of late, however, an upstart service called America Online (AOL) had been making waves. Under Steve Case, its wunderkind CEO, AOL aimed its pitch straight at the heart of Middle America rather than the tech-savvy elite. Over the course of 1993 alone, it went from 300,000 to 500,000 subscribers. But that was only the beginning if one listened to Case. For a second Home Computer Revolution, destined to be infinitely more successful and long-lasting than the first, was now in full swing, powered along by the ease of use of Windows 3 and by the latest consumer-grade hardware, which made computing faster and more aesthetically attractive than it had ever been before. AOL’s quick and easy custom software fit in perfectly with these trends. Surely this model of the online future — of curated content offered up by a firm whose stated ambition was to be the latest big player in mass media as a whole; of a subscription model that functioned much like the cable television which the large majority of Americans were already paying for — was more likely to take hold than the anarchic jungle that was the World Wide Web. It was, at any rate, a model that Bill Gates could understand very well, and naturally gravitated toward. Never one to leave cash on the table, he started asking himself how Microsoft could get a piece of this action as well.

Steve Case celebrates outside the New York Stock Exchange on March 19, 1992, the day America Online went public.

Gates proceeded in his standard fashion: in May of 1993, he tried to buy AOL outright. But Steve Case, who nursed dreams of becoming a media mogul on the scale of Walt Disney or Jack Warner, turned him down flat. At this juncture, Russ Siegelman, a 33-year-old physicist-by-education whom Gates had made his point man for online strategy, suggested a second classically Microsoft solution to the dilemma: they could build their own online service that copied AOL in most respects, then bury their rival with money and sheer ubiquity. They could, Siegelman suggested, make their own network an integral part of the eventual Windows 95, make signing up for it just another step in the installation process. How could AOL possibly compete with that? It was the first step down a fraught road that would lead to widespread outrage inside the computer industry and one of the most high-stakes anti-trust investigations in the history of American business — but for all that, the broad strategy would prove very, very effective once it reached its final form. It had a ways still to go at this stage, though, targeting as it did AOL instead of the Web.

Gates put Siegelman in charge of building Microsoft’s online service, which was code-named Project Marvel. “We were not thinking about the Internet at all,” admits one of the project’s managers. “Our competition was CompuServe and America Online. That’s what we were focused on, a proprietary online service.” At the time, there were exactly two computers in Microsoft’s sprawling Redmond, Washington, campus that were connected to the Internet. “Most college kids knew much more than we did because they were exposed to it,” says the Marvel manager. “If I had wanted to connect to the Internet, it would have been easier for me to get into my car and drive over to the University of Washington than to try and get on the Internet at Microsoft.”

It came down to the old “not built here” syndrome that dogs so many large institutions, as well as the fact that the Web and the Internet on which it lived were free, and Bill Gates tended to hold that which was free in contempt. Anyone who attempted to help him over his mental block — and there were more than a few of them at Microsoft — was greeted with an all-purpose rejoinder: “How are we going to make money off of free?” The biggest revolution in computing since the arrival of the first pre-assembled personal computers back in 1977 was taking place all around him, and Gates seemed constitutionally incapable of seeing it for what it was.

In the meantime, others were beginning to address the vexing question of how you made money out of free. On April 4, 1994, Marc Andreessen, the impetus behind the NCSA Mosaic browser, joined forces with Jim Clark, a veteran Silicon Valley entrepreneur, to found Netscape Communications for the purpose of making a commercial version of the Mosaic browser. A team of programmers, working without consulting the Mosaic source code so as to avoid legal problems, soon did just that, and uploaded Netscape Navigator to the Web on October 13, 1994. Distributed under the shareware model, with a $39 licensing fee requested but not demanded after a 90-day trial period was up, the new browser was installed on more than 10 million computers within nine months.

AOL’s growth had continued apace despite the concurrent explosion of the open Web; by the time of Netscape Navigator’s release, the service had 1.25 million subscribers. Yet Steve Case, no one’s idea of a hardcore techie, was ironically faster to see the potential — or threat — of the Web than was Bill Gates. He adopted a strategy in response that would make him for a time at least a superhero of the business press and the investor set. Instead of fighting the Web, AOL would embrace it — would offer its own Web browser to go along with its proprietary content, thereby adding a gate to its garden wall and tempting subscribers with the best of both worlds. As always for AOL, the whole package would be pitched toward neophytes, with a friendly interface and lots of safeguards — “training wheels,” as the tech cognoscenti dismissively dubbed them — to keep the unwashed masses safe when they did venture out into the untamed wilds of the Web.

But Case needed a browser of his own in order to execute his strategy, and he needed it in a hurry. He needed, in short, to buy a browser rather than build one. He saw three possibilities. One was to bring Netscape and its Navigator into the AOL fold. Another was a small company called Spyglass, a spinoff of the National Center for Supercomputing (NCSA) which was attempting to commercialize the original NCSA Mosaic browser. And the last was a startup called Booklink Technologies, which was making a browser from scratch.

Netscape was undoubtedly the superstar of the bunch, but that didn’t help AOL’s cause any; Marc Andreessen and Jim Clark weren’t about to sell out to anyone. Spyglass, on the other hand, struck Case as an unimaginative Johnny-come-lately that was trying to shut the barn door long after the horse called Netscape had busted out. That left only Booklink. In November of 1994, AOL paid $30 million for the company. The business press scoffed, deeming it a well-nigh flabbergasting over-payment. But Case would get the last laugh.

While AOL was thus rushing urgently to “embrace and extend” the Web, to choose an ominous phrase normally associated with Microsoft, the latter was dawdling along more lackadaisically toward a reckoning with the Internet. During that same busy fall of 1994, IBM released OS/2 3.0, which was marketed as OS/2 Warp in the hope of lending it some much-needed excitement. By either name, it was the latest iteration of an operating system that IBM had originally developed in partnership with Microsoft, an operating system that had once been regarded by both companies as nothing less than the future of mainstream computing. But since the pair’s final falling out in 1991, OS/2 had become an irrelevancy in the face of the Windows juggernaut, winning a measure of affection only in some hacker circles and a few other specialized niches. Despite its snazzy new name and despite being an impressive piece of software from a purely technical perspective, OS/2 Warp wasn’t widely expected to change those fortunes before its release, and this lack of expectations proved well-founded afterward. Yet it was a landmark in another way, being the first operating system to include a Web browser as an integral component, in this case a program called Web Explorer, created by IBM itself because no one else seemed much interested in making a browser for the unpopular OS/2.

This appears to have gotten some gears turning in Bill Gates’s head. Microsoft already planned to include more networking tools than ever before in Windows 95. They had, for example, finally decided to bow to customer demand and build right into the operating system TCP/IP, the networking protocol that allowed a computer to join the Internet; Windows 3 required the installation of a third-party add-on for the same purpose. (“I don’t know what it is, and I don’t want to know what it is,” said Steve Ballmer, Gates’s right-hand man, to his programmers on the subject of TCP/IP. “[But] my customers are screaming about it. Make the pain go away.”) Maybe a Microsoft-branded Web browser for Windows 95 would be a good idea as well, if they could acquire one without breaking the bank.

Just days after AOL bought Booklink for $30 million, Microsoft agreed to give $2 million to Spyglass. In return, Spyglass would give Microsoft a copy of the Mosaic source code, which it could then use as the basis for its own browser. But, lest you be tempted to see this transaction as evidence that Gates’s opinions about the online future had already undergone a sea change by this date, know that the very day this deal went down was also the one on which he chose to publicly announce Microsoft’s own proprietary AOL competitor, to be known as simply the Microsoft Network, or MSN. At most, Gates saw the open Web at this stage as an adjunct to MSN, just as it would soon become to AOL. MSN would come bundled into Windows 95, he told the assembled press, so that anyone who wished to could become a subscriber at the click of a mouse.

The announcement caused alarm bells to ring at AOL. “The Windows operating system is what the dial tone is to the phone industry,” said Steve Case. He thus became neither the first nor the last of Gates’s rival to hint at the need for government intervention: “There needs to be a level playing field on which companies compete.” Some pundits projected that Microsoft might sign up 20 million subscribers to MSN before 1995 was out. Others — the ones whom time would prove to have been more prescient — shook their heads and wondered how Microsoft could still be so clueless about the revolutionary nature of the World Wide Web.

AOL leveraged the Booklink browser to begin offering its subscribers Web access very early in 1995, whereupon its previously robust rate of growth turned downright torrid. By November of 1995, it would have 4 million subscribers. The personable and photogenic Steve Case became a celebrity in his own right, to the point of starring in a splashy advertising campaign for The Gap’s line of khakis; the man and the pants represented respectively the personification and the uniform of the trend in corporate America toward “business casual.” Meanwhile Case’s company became an indelible part of the 1990s zeitgeist. “You’ve got mail!,” the words AOL’s software spoke every time a new email arrived — something that was still very much a novel experience for many subscribers — was featured as a sample in a Prince song, and eventually became the name of a hugely popular romantic comedy starring Tom Hanks and Meg Ryan. CompuServe and AOL’s other old rivals in the proprietary space tried to compete by setting up Internet gateways of their own, but were never able to negotiate the transition from one era of online life to another with the same aplomb as AOL, and gradually faded into irrelevancy.

Thankfully for Microsoft’s shareholders, Bill Gates’s eyes were opened before his company suffered the same fate. At the eleventh hour, with what were supposed to be the final touches being put onto Windows 95, he made a sharp swerve in strategy. He grasped at last that the open Web was the here, the now, and the future, the first major development in mainstream consumer computing in years that hadn’t been more or less dictated by Microsoft — but be that as it may, the Web wasn’t going anywhere. On May 26, 1995, he wrote a memo to every Microsoft employee that exuded an all-hands-on-deck sense of urgency. Gates, the longstanding Internet agnostic, had well and truly gotten the Internet religion.

I want to make clear that our focus on the Internet is critical to every part of our business. The Internet is the most important single development to come along since the IBM PC was introduced in 1981. It is even more important than the arrival of [the] graphical user interface (GUI). The PC analogy is apt for many reasons. The PC wasn’t perfect. Aspects of the PC were arbitrary or even poor. However, a phenomena [sic] grew up around the IBM PC that made it a key element of everything that would happen for the next fifteen years. Companies that tried to fight the PC standard often had good reasons for doing so, but they failed because the phenomena overcame any weakness that [the] resistors identified.

Over the last year, a number of people [at Microsoft] have championed embracing TCP/IP, hyperlinking, HTML, and building clients, tools, and servers that compete on the Internet. However, we still have a lot to do. I want every product plan to try and go overboard on Internet features.

Everything changed that day. Instead of walling its campus off from the Internet, Microsoft put the Web at every employee’s fingertips. Gates himself sent his people lists of hot new websites to explore and learn from. The team tasked with building the Microsoft browser, who had heretofore labored in under-staffed obscurity, suddenly had all the resources of the company at their beck and call. The fact was, Gates was scared; his fear oozes palpably from the aggressive language of the memo above. (Other people talked of “joining” the Internet; Gates wanted to “compete” on it.)

But just what was he so afraid of? A pair of data points provides us with some clues. Three days before he wrote his memo, a new programming language and run-time environment had taken the industry by storm. And the day after he did so, a Microsoft executive named Ben Slivka sent out a memo of his own with Gate’s blessing, bearing the odd title of “The Web Is the Next Platform.” To understand what Slivka was driving at, and why Bill Gates took it as such an imminent existential threat to his company’s core business model, we need to back up a few years and look at the origins of the aforementioned programming language.

Bill Joy, an old-school hacker who had made fundamental contributions to the Unix operating system, was regarded as something between a guru and an elder statesman by 1990s techies, who liked to call him “the other Bill.” In early 1991, he shared an eye-opening piece of his mind at a formal dinner for select insiders. Microsoft was then on the ascendant, he acknowledged, but they were “cruising for a bruising.” Sticking with the automotive theme, he compared their products to the American-made cars that had dominated until the 1970s — until the Japanese had come along peddling cars of their own that were more efficient, more reliable, and just plain better than the domestic competition. He said that the same fate would probably befall Microsoft within five to seven years, when a wind of change of one sort or another came along to upend the company and its bloated, ugly products. Just four years later, people would be pointing to a piece of technology from his own company Sun Microsystems as the prophesied agent of Microsoft’s undoing.

Sun had been founded in 1982 to leverage the skills of Joy along with those of a German hardware engineer named Andy Bechtolsheim, who had recently built an elegant desktop computer inspired by the legendary Alto machines of Xerox’s Palo Alto Research Center. Over the remainder of the 1980s, Sun made a good living as the premier maker of Unix-based workstations: computers that were a bit too expensive to be marketed to even the most well-heeled consumers, but were among the most powerful of their day that could be fit onto or under a single desktop. Sun possessed a healthy antipathy for Microsoft, for all of the usual reasons cited by the hacker contingent: they considered Microsoft’s software derivative and boring, considered the Intel hardware on which it ran equally clunky and kludgy (Sun first employed Motorola chips, then processors of their own design), and loathed Microsoft’s intensely adversarial and proprietorial approach to everything it touched. For some time, however, Sun’s objections remained merely philosophical; occupying opposite ends of the market as they did, the two companies seldom crossed one another’s paths. But by the end of the decade, the latest Intel hardware had advanced enough to be comparable with that being peddled by Sun. And by the time that Bill Joy made his prediction, Sun knew that something called Windows NT was in the works, knew that Microsoft would be coming in earnest for the high-end-computing space very soon.

About six months after Joy played the oracle, Sun’s management agreed to allow one of their star programmers, a fellow named James Gosling, to form a small independent group in order to explore an idea that had little obviously to do with the company’s main business. “When someone as smart as James wants to pursue an area, we’ll do our best to provide an environment,” said Chief Technology Officer Eric Schmidt.

James Gosling

The specific “area” — or, perhaps better said, problem — that Gosling wanted to address was one that still exists to a large extent today: the inscrutability and lack of interoperability of so many of the gadgets that power our daily lives. The problem would be neatly crystalized almost five years later by one of the milquetoast jokes Jay Leno made at the Windows 95 launch, about how the VCR in even Bill Gates’s living room was still blinking “12:00” because he had never figured out how to set the thing’s clock. What if everything in your house could be made to talk together, wondered Gosling, so that setting one clock would set all of them — so that you didn’t have to have a separate remote control for your television and your VCR, each with about 80 buttons on it that you didn’t understand what they did and never, ever pressed. “What does it take to watch a videotape?” he mused. “You go plunk, plunk, plunk on all of these things in certain magic sequences before you can actually watch your videotape! Why is it so hard? Wouldn’t it be nice if you could just slide the tape into the VCR, [and] the system sort of figures it out: ‘Oh, gee, I guess he wants to watch it, so I ought to power up the television set.'”

But when Gosling and his colleagues started to ponder how best to realize their semi-autonomous home of the future, they tripped over a major stumbling block. While it was true that more and more gadgets were becoming “smart,” in the sense of incorporating programmable microprocessors, the details of their digital designs varied enormously. Each program to link each individual model of, say, VCR into the home network would have to be written, tested, and debugged from scratch. Unless, that is, the program could be made to run in a virtual machine.

A virtual machine is an imaginary computer which a real computer can be programmed to simulate. It permits a “write once, run everywhere” approach to software: once a given real computer has an interpreter for a given virtual machine, it can run any and all programs that have been or will be written for that virtual machine, albeit at some cost in performance.

Like almost every other part of the programming language that would eventually become known as Java, the idea of a virtual machine was far from new in the abstract. (“In some sense, I would like to think that there was nothing invented in Java,” says Gosling.) For example, a decade before Gosling went to work on his virtual machine, the Apple Pascal compiler was already targeting one that ran on the lowly Apple II, even as the games publisher Infocom was distributing its text adventures across dozens of otherwise incompatible platforms thanks to its Z-Machine.

Unfortunately, Gosling’s new implementation of this old concept proved unable to solve by itself the original problem for which it had been invented. Even Wi-Fi didn’t exist at this stage, much less the likes of Bluetooth. Just how were all of these smart gadgets supposed to actually talk to one another, to say nothing of pulling down the regular software updates which Gosling envisioned as another benefit of his project? (Building a floppy-disk drive into every toaster was an obvious nonstarter.) After reluctantly giving up on their home of the future, the team pivoted for a while toward “interactive television,” a would-be on-demand streaming system much like our modern Netflix. But Sun had no real record in the consumer space, and cable-television providers and other possible investors were skeptical.

While Gosling was trying to figure out just what this programming language and associated runtime environment he had created might be good for, the World Wide Web was taking off. In July of 1994, a Sun programmer named Patrick Naughton did something that would later give Bill Gates nightmares: he wrote a fairly bare-bones Web browser in Java, more for the challenge than anything else. A couple of months later there came the eureka moment: Naughton and another programmer named Jonathan Payne made it possible to run other Java programs, or “applets” as they would soon be known, right inside their browser. They stuck one of the team’s old graphical demos on a server and clicked the appropriate link, whereupon they were greeted with a screen full of dancing Coca-Cola cans. Payne found it “breathtaking”: “It wasn’t just playing an animation. It was physics calculations going on inside a webpage!”

In order to appreciate his awe, we need to understand what a static place the early Web was. HTML, the “language” in which pages were constructed, was an abbreviation for “Hypertext Markup Language.” In form and function, it was more akin to a typesetting specification than a Turing-complete programming language like C or Pascal or Java; the only form of interactivity it allowed for was the links that took the reader from static page to static page, while its only visual pizazz came in the form of static in-line images (themselves a relatively recent addition to the HTML specification, thanks to NCSA Mosaic). Java stood to change all that at a stroke. If you could embed programs running actual code into your page layouts, you could in theory turn your pages into anything you wanted them to be: games, word processors, spreadsheets, animated cartoons, stock-market tickers, you name it. The Web could almost literally come alive.

The potential was so clearly extraordinary that Java went overnight from a moribund project on the verge of the chopping block to Sun’s top priority. Even Bill Joy, now living in blissful semi-retirement in Colorado, came back to Silicon Valley for a while to lend his prodigious intellect to the process of turning Java into a polished tool for general-purpose programming. There was still enough of the old-school hacker ethic left at Sun that management bowed to the developers’ demand that the language be made available for free to individual programmers and small businesses; Sun would make its money on licensing deals with bigger partners, who would pay for the Java logo on their products and the right to distribute the virtual machine. The potential of Java certainly wasn’t lost on Netscape’s Marc Andreessen, who had long been leading the charge to make the Web more visually exciting. He quickly agreed to pay Sun $750,000 for the opportunity to build Java into the Netscape Navigator browser. In fact, it was Andreessen who served as master of ceremonies at Java’s official coming-out party at a SunWorld conference on May 23, 1995 — i.e., three days before Bill Gates wrote his urgent Internet memo.

What was it that so spooked him about Java? On the one hand, it represented a possible if as-yet unrealized challenge to Microsoft’s own business model of selling boxed software on floppy disks or CDs. If people could gain access to a good word processor just by pointing their browsers to a given site, they would presumably have little motivation to invest in Microsoft Office, the company’s biggest cash cow after Windows. But the danger Java posed to Microsoft might be even more extreme. The most maximalist predictions, which were being trumpeted all over the techie press in the weeks after the big debut, had it that even Windows could soon become irrelevant courtesy of Java. This is what Microsoft’s own Ben Slivka meant when he said that “the Web is the next platform.” The browser itself would become the operating system from the perspective of the user, being supported behind the scenes only by the minimal amount of firmware needed to make it go. Once that happened, a new generation of cheap Internet devices would be poised to replace personal computers as the world now knew them. With all software and all of each person’s data being stored in the cloud, as we would put it today, even local hard drives might become passé. And then, with Netscape Navigator and Java having taken over the role of Windows, Microsoft might very well join IBM, the very company it had so recently displaced from the heights of power, in the crowded field of computing’s has-beens.

In retrospect, such predictions seem massively overblown. Officially labeled beta software, Java was in reality more like an alpha release at best at the time it was being celebrated as the Paris to Microsoft’s Achilles, being painfully crash-prone and slow. And even when it did reach a reasonably mature form, the reality of it would prove considerably less than the hype. One crippling weakness that would continue to plague it was the inability of a Java applet to communicate with the webpage that spawned it; applets ran in Web browsers, but weren’t really of them, being self-contained programs siloed off in a sandbox from the environment that spawned them. Meanwhile the prospects of applications like online word processing, or even online gaming in Java, were sharply limited by the fact that at least 95 percent of Web users were accessing the Internet on dial-up connections, over which even the likes of a single high-resolution photograph could take minutes to load. A word processor like the one included with Microsoft Office would require hours of downloading every time you wanted to use it, assuming it was even possible to create such a complex piece of software in the fragile young language. Java never would manage to entirely overcome these issues, and would in the end enjoy its greatest success in other incarnations than that of the browser-embedded applet.

Still, cooler-headed reasoning like this was not overly commonplace in the months after the SunWorld presentation. By the end of 1995, Sun’s stock price had more than doubled on the strength of Java alone, a product yet to see a 1.0 release. The excitement over Java probably contributed as well to Netscape’s record-breaking initial public offering in August. A cavalcade of companies rushed to follow in the footsteps of Netscape and sign Java distribution deals, most of them on markedly more expensive terms. Even Microsoft bowed to the prevailing winds on December 7 and announced a Java deal of its own. (BusinessWeek magazine described it as a “capitulation.”) That all of this was happening alongside the even more intense hype surrounding the release of Windows 95, an operating system far more expansive than any that had come out of Microsoft to date but one that was nevertheless of a very traditionalist stripe at bottom, speaks to the confusion of these go-go times when digital technology seemed to be going anywhere and everywhere at once.

Whatever fear and loathing he may have felt toward Java, Bill Gates had clearly made his peace with the fact that the Web was computing’s necessary present and future. The Microsoft Network duly debuted as an icon on the default Windows 95 desktop, but it was now pitched primarily as a gateway to the open Web, with just a handful of proprietary features; MSN was, in other words, little more than yet another Internet service provider, of the sort that were popping up all over the country like dandelions after a summer shower. Instead of the 20 million subscribers that some had predicted (and that Steve Case had so feared), it attracted only about 500,000 customers by the end of the year. This left it no more than one-eighth as large as AOL, which had by now completed its own deft pivot from proprietary online service of the 1980s type to the very face of the World Wide Web in the eyes of countless computing neophytes.

Yet if Microsoft’s first tentative steps onto the Web had proved underwhelming, people should have known from the history of the company — and not least from the long, checkered history of Windows itself — that Bill Gates’s standard response to failure and rejection was simply to try again, harder and better. The real war for online supremacy was just getting started.

(Sources: the books Overdrive: Bill Gates and the Race to Control Cyberspace by James Wallace, The Silicon Boys by David A. Kaplan, Architects of the Web by Robert H. Reid, Competing on Internet Time: Lessons from Netscape and Its Battle with Microsoft by Michael Cusumano and David B. Yoffie, dot.con: The Greatest Story Ever Sold by John Cassidy, Stealing Time: Steve Case, Jerry Levin, and the Collapse of AOL Time Warner by Alec Klein, Fools Rush In: Steve Case, Jerry Levin, and the Unmaking of AOL Time Warner by Nina Munk, and There Must be a Pony in Here Somewhere: The AOL Time Warner Debacle by Kara Swisher.)