America: My Time

Chapter 12 Office Software
Chapter Twelve Office Software
Laymen may not see the power of Dream World Office Software, but Silicon Valley insiders know it all too well. The existence of patents has effectively locked down the development of other competitors. Whether it's word processing or spreadsheets, unless you don't use the formatting of other software, you'll infringe on their patents. The patent barrier is simply insurmountable. This is precisely the main reason why Dream World Software Company is hated – it leaves no hope for anyone, completely cutting off all enemies!
Monopoly! This is patent monopoly. What's the most profitable thing? Monopoly! As long as there are personal computers, there's a need for office software. Some individuals may not need it, but it's essential for businesses!
The sudden emergence of Dream World Software Company caught the eye of many computer companies. However, not all computer companies were like Apple, only thinking about how to acquire Dream World Software. Some companies did not have much hostility towards Dream World Software, especially those that operated personal computers. The emergence of office software boosted their sales performance. In the past, the reason why personal computers did not sell well was not because the computers were not good, but because there was no practical software!
Investment banks are the most astute in the capital market. The emergence of Dreamworld Software Company benefited personal computer companies in Silicon Valley and attracted the attention of capital. Venture capital firms emerged the fastest. Unfortunately, their calculations failed. John rejected all venture capital firms. In short, Dreamworld was not short of money.

Indeed, although Dream World is a relatively new software company, it's not short of money. In this era, software development costs are low, there are virtually no loans in the early stages, the company has few employees, and the software itself is flawless. How could such a company lack funds? It simply needs to develop step by step!
Within just over ten days of its release, Dream World software sold tens of thousands of copies. Based on the overall PC market shipment volume, this was just the beginning; the real profits were yet to come. Monthly revenue of tens of millions of dollars was easily achievable. Given its established market share in the PC market, even a small fraction choosing Dream World's office software would translate into enormous profits!

After learning about the sales figures for Dream World software, John sighed. If he had chosen to develop office software from the beginning, perhaps he wouldn't be under so much pressure now, and he could have invested more freely in Japan. Come to think of it, he didn't understand the software development industry at all and his initial preparations were insufficient!
Fortunately, I didn't hesitate at the crucial moment and seized the opportunity before Microsoft developed its own office software. Although this success was somewhat unexpected, it reminded me not to view current developments with the same old perspective, as doing so would only lead me to make basic mistakes.

The success of Dream World Software should have been a cause for celebration, but after realizing he had made an inexcusable mistake, John canceled the party and instead distributed the bonuses to the employees. Time was of the essence; facing pressure from Apple and competition from other companies, he needed to proceed cautiously and continue to strengthen the development of Dream World Software.

Rejecting Apple's acquisition offer will inevitably cause trouble for Dream World. As a publicly traded company, Apple is likely to suppress Dream World, and it's the most powerful company in the American personal computer industry. To prepare for any impending crisis, Dream World needs to accelerate its development, and the operating system is paramount! A crisis will ensue if Apple computers no longer support Dream World's office software.

Strike first and you'll be strong; strike later and you'll suffer! We can't wait for Apple's suppression. Dream World must take the initiative, develop operating system software, and enhance its ability to withstand risks. As long as Dream World can withstand Apple's first round of suppression, everything will no longer be a problem. Once Compaq appears, the pressure on Dream World will dissipate. Apple is not as terrible as we imagine.

If Apple were to truly take drastic measures and completely cut off Dreamworld's office software, prohibiting its installation on Apple computers, it might severely damage Dreamworld. However, they dare not do so; the Fair Trade Commission is not just for show! Most importantly, Apple is a publicly traded company and must protect shareholder interests; doing so would seriously harm those interests.

With Dreamworld Office software available, Apple's personal computer sales will soar. If companies refuse to install the software, they will inevitably be abandoned by the market, and shareholders' interests will be harmed. Someone needs to be held accountable for this. Perhaps before the Fair Trade Commission investigates, internal disputes will break out within Apple.

Just as John had guessed, Apple reacted quickly, supporting other software companies to develop office software in an attempt to circumvent Dreamworld's patent barriers. Apple made no attempt to hide its suppression of Dreamworld, with Microsoft being its first choice. Apple wanted to use Microsoft to force Dreamworld to compromise on the acquisition!
Unfortunately, Apple overestimated its own capabilities, underestimated John's persistence, and even more so, underestimated the power of Dream World's patents! Most entrepreneurs, when suddenly faced with suppression from an industry giant, would panic and doubt whether their company could continue to grow and survive in the industry. But John didn't have these concerns, nor did the employees of Dream World. They all knew the strength of their software patents and that Apple couldn't suppress them at will.

As long as Microsoft can't circumvent Dreamworld's patents, its so-called office software development is a joke. If Apple were to directly ban the installation of Dreamworld's office software on its own computers, it might put some pressure on Dreamworld, but since Apple hasn't done so, it naturally won't get the desired result!
Faced with competition from Microsoft, Dream World feels no pressure. With patents in hand, that's its confidence. The Microsoft of today is not the Microsoft of tomorrow, and it has no right to make Dream World afraid!
No matter how great the external pressure, as long as you get through the initial stage, you can overcome the difficulties. No matter who the enemy is, the outcome will be the same. With patents in hand, even facing giants like IBM is no exception!

In the software industry, the first-mover advantage can be magnified many times over. Being the first to develop means having absolute patents, and even the smallest patent is enough to give latecomers a headache!
John had considered the personal computer market, but ultimately gave up. Although research and development wasn't difficult, having already mastered office software, venturing into personal computer development would face backlash from the entire industry. Even with patents, he could be easily outmaneuvered, and most importantly, he lacked an operating system.

Overall, the pressure Apple has exerted on Dreamworld is not significant and not worth taking seriously. While Apple appears to hold the upper hand in this confrontation, it cannot fundamentally circumvent Dreamworld's patents. The pressure on Apple is not as great as that on Microsoft; in the long run, Microsoft is Dreamworld's true enemy.

Dream World is not only focused on software, but also cannot abandon hardware. At present, Dream World has limited funds to invest, so it will not achieve great results in hardware development, and launching an acquisition is even more impossible!

Although Dreamworld remained calm throughout the conflict, as if nothing had happened, it had a huge impact on its Silicon Valley counterparts. The number of people secretly investigating Dreamworld's patents was the number of hidden enemies. The emergence of Dreamworld opened a new window for many software companies in Silicon Valley, allowing them to see a whole new world.

Developing new software around personal computers is indeed a good choice! Unfortunately, not all software companies think this way. Many more software companies still want to bypass Dreamworld's patents and start with office software, after all, Apple's suppression is a real issue!

The emergence of Dreamworld Office software made Apple realize its own shortcomings. In the past, they only focused on the research and development of personal computers. Now they understand that it is not enough to just have personal computers. They also need supporting software. Only by having more supporting software can personal computers sell well and have greater room for development.

With the explosive growth of Dream World, John once again came into the view of American investors. This time, no one dared to underestimate this young man. Although Dream World Software Company was small, it held absolute patents. Apple's IPO had made these people deeply understand the madness of high-tech stocks. However, Dream World was not short of money, and even if they wanted to invest, they had no opportunity. The fact that Dream World could refuse Apple's acquisition showed how firm Apple's determination was.

After venture capital firms abandoned their illusions about DreamWorld, investment banks began to take notice and showed signs of interest. DreamWorld was a promising high-tech company that would eventually go public; their goal was to first make contact and see if they could secure Series A funding!

(End of this chapter)