AROUND the time of the release of Windows 95, Microsoft discreetly sold a small subsidiary that made its packaging. A decade ago that decision seemed to fit with the progression of computing and the nascent internet. Although people all over the world stood in long lines to be the first to buy boxed and shrink-wrapped copies of Microsoft's latest operating system, it was thought that such products would in future be delivered direct to their computers over high-speed networks.
On January 30th Microsoft releases to consumers the newest version of its operating system, called Windows Vista. Although the company said on January 17th that it would make Vista available for sale and download online, most people will buy the upgrade in old-fashioned boxes, just as they did back in 1995. But this time, despite plenty of razzmatazz, few customers will be queuing up to buy a copy.
This reflects the way in which Microsoft's dominance is slowly being eroded. Who produces the plumbing for a personal computer matters a lot less than it did in 1995. More PCs now talk to one another using open standards rather than proprietary ones. Many services and some programs are accessed online. People watch videos on YouTube, share photos on Flickr, check their e-mail and even work on files and spreadsheets, all using software that is based on the internet.
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