10 Years Ago: IT Circa April 2000

Has it been 10 years already since the collapse of the dot-com boom? While it may seem to some that time has flown -- and others not so much -- April 2000 not only saw the bubble burst for many Internet-based companies, but it also offered some down-to-earth lessons for more traditional companies such as Microsoft and Apple. And yet, some brave souls still pursued IPOs.

Microsoft Loses Anti-Trust Suit

On April 3, 2000, Judge Thomas Penfield Jackson issued a two-part ruling that said Microsoft had committed monopolization, attempted monopolization, and "tying" -- the practice of selling one good with the condition of selling (an often unpopular) second good. Jackson ruled that Microsoft must be broken into two separate units, one to produce the operating system, and one to produce other software components.



The plan did not sit well with former CEO Bill Gates, who called the plan "disturbing" and "unprecedented."

See "Gates Says Breakup Plan Mostly Arbitrary"

Pop!

April 14 officially marked the end of a speculative high-tech bubble that started in the spring of 1997. The closing of the Nasdaq at 3321 on the 14th corresponded to a total loss of more than 35 percent since its all-time high of 5133 on March 10, 2000.



However, the stocks of the dot-com companies had started to slip earlier in the year. In January, Sapient, Proxicom, Razorfish, USWeb, VerticalNet -- all at one time well-known firms -- saw stocks tumble 12 percent soon after the new year. And those numbers just kept falling.

Pocket PC Debuts

The new Pocket PC debuted at New York's Grand Central Station this month. The devices featured an operating system based on the Windows CE kernel but with enhancements to the user interface. Pocket versions of popular Microsoft applications, including Internet Explorer, Word and Excel, were also included. Hardware partners included Casio Computer, Compaq Computer, Hewlett-Packard and Symbol Technologies.



See "Symbol Aims Pocket PC At Vertical Markets, Enterprise"

Ballmer's First 100 Days

Those first 100 days were nothing if not memorable. After taking the reins from Gates in January, Ballmer endured the first round of the DOJ's antitrust suit against his company, the launch of Windows 2000 and mounting pressure to increase the price of Microsoft stock. The new CEO, considered a kinder, gentler executive than Gates, was expected to successfully restore the company's tattered image.

Nuance Goes Public

The Children's Online Privacy Protection Act (COPPA), which went into effect in the U.S. this month to protect children's privacy on the Web ran into trouble almost immediately.The Walt Disney Co. planned to use parents' credit card numbers to verify that their children could use services on Disney's network of Web sites. However, credit card companies and an online advocacy group claimed the scheme would be too costly for Web sites and would encourage children to lie about their ages.The legislation was aimed at preventing personal information from being collected online from children younger than 13 years old without their parents' consent.

Apple Sows Seeds Of Success

Apple announces a $233 million profit in its third quarter of 2000. The company also announced it planned its first stock split in 13 years. Apple had a strong mix of higher-margin professional products, such as its G4 computers and a new line of PowerBook notebook computers. A decline in memory chip prices also helped send gross profit margins to 28.2 percent, up from 26.3 percent a year ago. See also, "From The Pismo To The iPad -- A Decade Of Apple Products."

Linux On The Rise

IDC says Linux server shipments grew 166 percent between the fourth quarters of 1998 and 1999, a survey of 200 Linux users reported. "The majority of participants estimated that their Linux servers offered at least 4 9s in availability, which translates to less than one hour of unexpected downtime per year," according to an IDC press release. Compaq was the No. 1 vendor in the Linux Server Market.

Technology companies showed 32 percent growth so far this earnings season, exceeding analysts' average expectation for 30 percent, prompting some to wonder whether tech was the safe haven in the storm.



Want to dig back farther? Check out "CRN: From Then To Now Timeline," which spans November 1982 to June 2000.

Also worth reading:

"The Dot-Com Bubble: 10 Years Already?"