BY CHRIS NOLAN
Mercury News Staff Writer
WHAT'S Netscape Communications Corp.'s biggest problem? If you listen to
some in Silicon Valley, it's Apple.
That's right. A number of folks who once were in charge at Apple Computer
Inc. --
including Mike Homer, Netscape executive vice president and general
manager of the
company's Web site division -- are now helping to run Netscape. And, say the
company's critics, the Apple vets have brought with them a dubious legacy:
The belief in
the inevitable triumph of engineering over every other part of the
business, particularly
marketing.
This critique comes from an interesting cross-section of people who know
the Mountain
View software company. It includes engineers at other companies with
business ties to
Netscape, investment fund managers who are carefully watching the
company's new
strategy, former Apple engineers and marketing people. And, of course,
Netscape's
competition.
``The Apple mentality is running Netscape,'' said a competitor. ``It's
sad. They blew it.
They're toast.''
That's an overstatement. As Homer points out, the new game for the old
browser firm --
which is now half portal, half enterprise software company -- has just
started.
``We have had to build two businesses,'' said Homer. ``We are
transitioning very
rapidly.''
Homer, who worked at Apple from 1982 to 1991, says he doesn't think
Cupertino's
sins are being visited on Netscape.
``This whole problem could just be me,'' he jokes. ``Go ahead, blame it on
me.''
Homer's good-humored self-deprecation makes a valid point. Of the 2,300
people at
Netscape, fewer than 100 of them are from Apple, he said. ``When the
business changed
at Apple, they didn't transition the business in five months. They waited
five years,''
said Homer.
Yes, but no one in high tech -- particularly the software business -- gets
that kind of time
anymore. And many of those who are from Apple are, like Homer, in
positions of some
authority. They include Jennifer Bailey, Netcenter senior vice president
of strategic
development and marketing; Deb Kuhns, vice president of distribution
marketing; and
Dave Rothchild, vice president of client products.
Netscape has been working hard to restructure its businesses. But many of
those who do
business with the company -- particularly those who know how hard it is to
sell
advertising -- express frustration with Netscape's focus on technology.
``It's just not cool,'' said one site builder who would like to do
business with Netscape.
``They need somebody out of Hollywood,'' he added. ``Look at Bob Pittman's
background.''
Pittman, COO of America Online, was one of the founders of MTV.
Or consider Yahoo. That Internet portal company began life as a search
engine housed
on Netscape servers. It's grown so fast and become so well-known -- almost
entirely
through marketing -- that it's changed its own industry. Yahoo has shown
people how
much fun -- yahoo! -- the Internet can be. And now, to keep up, Netscape
is making
itself into a portal.
Netscape's not alone; many companies in Silicon Valley are struggling with
a variation
of this dilemma. It's not just the engineers against the marketing people,
anymore. In
partners meetings at venture capital firms, in executive committee
meetings at large
companies, the question about how to succeed on the Internet has changed.
It's no
longer how do we win a market with our technology? It's how do we compete
in an
ever-expanding market of customers who could care less about the technology?
That's not new, said Homer. ``It's a big tug of war between engineering
and marketing.
That's the way it's always been,'' he said.
And critics -- even those who are warming their toaster ovens -- say
underestimating
Homer is a mistake. ``This is a guy who can put deals together,'' said a
former Apple
engineer.
One deal that's said to be pending: Hiring an executive who knows the
media business.
Don't forget, Homer reminds critics, Netscape's easy-to-use, compelling,
free browser
started this hit parade we call the World Wide Web.
``The reason the browser was successful to begin with was not because it was
technologically superior. It was because the browser was easy to use,''
said Homer.
``Our culture has always been oriented toward software that was very easy
to use.''
Of course, that's what they used to say about Apple.
YOU CAN ONLY RENT IT: When Dan Gordon and Dean Biersch opened the
restaurant that bears both their names -- Gordon Biersch -- it relied
heavily on a
certain kind of customer. Geeks, netboys, people who can drink a lot of
beer, eat a lot of
garlic fries and not regret it.
Been a long time since you were able to do that, huh?
Ten years, to be exact. That's when Gordon Biersch opened in Palo Alto,
meeting what
was clearly pent-up demand for business lunch restaurants and high-calorie
food. ``I
think the Internet was hot here in 1989,'' said Gordon, who used to save
the paper
placemats customers left behind, filled with handwritten equations,
business plans and
other notes. (Don't worry, he's thrown them all out. At least that's what
he says).
Gordon -- surrounded at a company celebration Wednesday by his Mom and
Dad, kids
and in-laws -- knows his audience. ``My goal is to have my name after Gordon
Moore's,'' said the man who was the only American in more than 40 years to
graduate
from the brewing program at the Technical University of Munich. ``He's my
idol. He's
the brains behind Intel.''
That's kind of geeky, Dan, isn't it? ``I am a geek. I'm an engineering
geek. I do the
beer.''
--Don't go lookin' for snakes you might find them. ...Metallica
<> tbyars@earthlink.net <> --============_-1309960174==_ma============ Content-Type: text/enriched; charset="us-ascii"
BY CHRIS NOLAN
Mercury News Staff Writer
WHAT'S Netscape Communications Corp.'s biggest problem? If you listen to
some in Silicon Valley, it's Apple.
That's right. A number of folks who once were in charge at Apple Computer Inc. --
including Mike Homer, Netscape executive vice president and general manager of the
company's Web site division -- are now helping to run Netscape. And, say the
company's critics, the Apple vets have brought with them a dubious legacy: The belief in
the inevitable triumph of engineering over every other part of the business, particularly
marketing.
This critique comes from an interesting cross-section of people who know the Mountain
View software company. It includes engineers at other companies with business ties to
Netscape, investment fund managers who are carefully watching the company's new
strategy, former Apple engineers and marketing people. And, of course, Netscape's
competition.
``The Apple mentality is running Netscape,'' said a competitor. ``It's sad. They blew it.
They're toast.''
That's an overstatement. As Homer points out, the new game for the old browser firm --
which is now half portal, half enterprise software company -- has just started.
``We have had to build two businesses,'' said Homer. ``We are transitioning very
rapidly.''
Homer, who worked at Apple from 1982 to 1991, says he doesn't think Cupertino's
sins are being visited on Netscape.
``This whole problem could just be me,'' he jokes. ``Go ahead, blame it on me.''
Homer's good-humored self-deprecation makes a valid point. Of the 2,300 people at
Netscape, fewer than 100 of them are from Apple, he said. ``When the business changed
at Apple, they didn't transition the business in five months. They waited five years,''
said Homer.
Yes, but no one in high tech -- particularly the software business -- gets that kind of time
anymore. And many of those who are from Apple are, like Homer, in positions of some
authority. They include Jennifer Bailey, Netcenter senior vice president of strategic
development and marketing; Deb Kuhns, vice president of distribution marketing; and
Dave Rothchild, vice president of client products.
Netscape has been working hard to restructure its businesses. But many of those who do
business with the company -- particularly those who know how hard it is to sell
advertising -- express frustration with Netscape's focus on technology.
``It's just not cool,'' said one site builder who would like to do business with Netscape.
``They need somebody out of Hollywood,'' he added. ``Look at Bob Pittman's
background.''
Pittman, COO of America Online, was one of the founders of MTV.
Or consider Yahoo. That Internet portal company began life as a search engine housed
on Netscape servers. It's grown so fast and become so well-known -- almost entirely
through marketing -- that it's changed its own industry. Yahoo has shown people how
much fun -- yahoo! -- the Internet can be. And now, to keep up, Netscape is making
itself into a portal.
Netscape's not alone; many companies in Silicon Valley are struggling with a variation
of this dilemma. It's not just the engineers against the marketing people, anymore. In
partners meetings at venture capital firms, in executive committee meetings at large
companies, the question about how to succeed on the Internet has changed. It's no
longer how do we win a market with our technology? It's how do we compete in an
ever-expanding market of customers who could care less about the technology?
That's not new, said Homer. ``It's a big tug of war between engineering and marketing.
That's the way it's always been,'' he said.
And critics -- even those who are warming their toaster ovens -- say underestimating
Homer is a mistake. ``This is a guy who can put deals together,'' said a former Apple
engineer.
One deal that's said to be pending: Hiring an executive who knows the media business.
Don't forget, Homer reminds critics, Netscape's easy-to-use, compelling, free browser
started this hit parade we call the World Wide Web.
``The reason the browser was successful to begin with was not because it was
technologically superior. It was because the browser was easy to use,'' said Homer.
``Our culture has always been oriented toward software that was very easy to use.''
Of course, that's what they used to say about Apple.
YOU CAN ONLY RENT IT: When Dan Gordon and Dean Biersch opened the
restaurant that bears both their names -- Gordon Biersch -- it relied heavily on a
certain kind of customer. Geeks, netboys, people who can drink a lot of beer, eat a lot of
garlic fries and not regret it.
Been a long time since you were able to do that, huh?
Ten years, to be exact. That's when Gordon Biersch opened in Palo Alto, meeting what
was clearly pent-up demand for business lunch restaurants and high-calorie food. ``I
think the Internet was hot here in 1989,'' said Gordon, who used to save the paper
placemats customers left behind, filled with handwritten equations, business plans and
other notes. (Don't worry, he's thrown them all out. At least that's what he says).
Gordon -- surrounded at a company celebration Wednesday by his Mom and Dad, kids
and in-laws -- knows his audience. ``My goal is to have my name after Gordon
Moore's,'' said the man who was the only American in more than 40 years to graduate
from the brewing program at the Technical University of Munich. ``He's my idol. He's
the brains behind Intel.''
That's kind of geeky, Dan, isn't it? ``I am a geek. I'm an engineering geek. I do the
beer.''
--
Don't go lookin' for snakes you might find them. ...Metallica
<<> tbyars@earthlink.net <<>
--============_-1309960174==_ma============--