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Sometimes, Microsoft is Right...

We've run a number of stories about RealNames over the years. To our credit, Slashdot readers and editors have mostly thought that RealNames was a foolish and pointless money wasting exercise to create an alternate DNS system that is neither, well, alternative or compatible with the DNS protocols. But recently, due to some shrewd marketing on the Part of Keith Teare, the RealNames CEO, they've gotten undeserved sympathy by painting themselves as victims of Microsoft. It is my intention to cut this off before it goes any further, to engage in some review of RealNames business and why it was a good thing that they went out of business. If you are interested in reading my thoughts about this, read on... A quick review: RealNames (then Centraal) first showed up on the Slashdot radar in 1998 when they inked a sales deal with Pre-verisign Network Solutions in which NSI would sell RealNames along with their other stable of internet "products." RealNames were very much pioneers in doing ethically troubling things for money on the Internet. Specifically, they were the first company to make a business model around manipulating search results for money. They also were trying to replace Network Solutions then-monopolistic control of domain names (a laudable goal) with a monopoly of their own (not so laudable), with their RealNames "augmenting" the DNS system in the Internet Explorer Browser and within search engines with which they had inked sales deals.

Now many many users of Slashdot have expressed their dislike for search services that order results based on cash, and many of us don't use IE, so the question comes up: why should we care about RealNames at all? Why does the failure of some poorly managed, ill-conceived company warrant any space on Slashdot? Alternative root servers make for a better story, no doubt. I'm the first to agree that RealNames deserves very little of your time, but the story of RealNames has recently taken a turn that is both annoying to me personally, and worrying to me as a long time participant in the open source scene.

Keith Teare, CEO of RealNames, has tried to make it seem like it was Microsoft's monopoly power that made RealNames go out of business. Lets review: RealNames had a deal with Microsoft to provide the RealNames service to MSN and Internet Explorer, for which they paid Microsoft a fee, and in return they got to derive revenue from selling the RealNames to companies, so basically Microsoft was likely RealNames' sole source of income. Keith and his coworkers were very happy to tie their horse to Microsoft while Microsoft was willing to pull them.

I don't need to explain to the Slashdot reader why RealNames was a poor idea. It is something you feel in your gut. I mean, in the end if you're going to accept the consensus reality that is the domain name system, are you going to stick with the somewhat broken NSI/ICANN/Pick-Your-Favorite-DNS company structure? Or are you going to go to a completly left field, poor, expensive excuse for NSI like RealNames? If you are a company trying to establish a web presence, do you choose the system that everyone has agreed on and publicize your url "http://www.bobstigerrentals.com" ? Or do you put: "RealName: Bob's Tiger Rentals" in your ads?

To illustrate further: Back in the day, I bought the linux.com domain name for the then-VA Research (Now VA Software) from Fred van Kempen (And there was much publicity, huzzah). Four or five months after doing this, I got a call from James Ash at RealNames trying to sell me the Linux RealName. This was not unusual, as I'd get any number of calls trying to sell me anything from containers full of stuffed penguins to whole companies (I was the wrong guy for those calls ...) What shocked me was the price he thought we'd pay. My mind remembers it as a horrible inverted Ron Popiel style sale, with none of the charm of Ron's products. How much would you pay to control the "Linux" RealName for four years? You'll be all over MSN and IE! $19.95? $29.95? $39.95? Try 1 million dollars.

It was a lot of money then, it's a lot of money now. It was a lot of money for any business. I told him we'd get back if we were interested. I didn't get back to him.

This is the innovation that Mr. Teare claims Microsoft squished, his right to overcharge for a dubious product. While Caveat Emptor certainly applied in the case of RealNames, his claim that Microsoft, somehow, has some duty to continue to provide the RealNames "service" to their browser client rings false. And that is the point of relating this bit of personal history.

I have little interest in engaging in schadenfreude over broken companies and laid off workers, but I do take issue with Keith Teare's attempt to jump on the anti-trust complainants bandwagon. If it is his hope that by crying foul on Microsoft now he can derive some sympathy or some other unknown gain, he'll have to look somewhere else than here on Slashdot, especially considering those that have a valid complaint against the software giant. Even considering recent developments I can't find any sympathy for him or his company, a company that, in my mind, belongs in the same class as LinuxONE (the California, not the Korean, company) and Digital Convergence.

33 of 352 comments (clear)

  1. Invest in space heaters! by sheldon · · Score: 4, Funny

    Hell must have just frozen over!

    1. Re:Invest in space heaters! by Debillitatus · · Score: 5, Funny
      Let's see... hell froze over, and the first advice is, "invest in space heaters".

      What does this say about where /.ers read from?

      Heh.

      --

      Come on, give it up, that's

  2. Sorry for him, but... by Bogatyr · · Score: 4, Insightful

    If he wanted to not have Microsoft control his coporate survival, he should have found someone else to be a customer. Depending on a single client as your sole revenue stream is a trap that has severely hurt at least one former employer of mine.

    1. Re:Sorry for him, but... by tftp · · Score: 4, Insightful
      if they'd designed themselves to hook into AOL in a way similar to the AOL keyword search strategy

      I believe, AOL's keyword is the AOL's own equivalent of RealNames' product. Why they should share cash with anyone for something they can (and do) provide on their own?

  3. Thank you, thank you! by Da+VinMan · · Score: 4, Interesting

    I am sick to death of alarmist stories on /. that assume that the average /.er will believe in anything but Microsoft no matter what the story.

    Hopefully, this is a sea change for /. and it's front page stories. Stories that are about so-and-so feeling screwed and wronged by Microsoft aren't automatically worthy of our attention. To me, that why the story of RealNames on /. is worthy of mention; because of /., not RealNames.

    Thanks again....

    --
    Please mod this post only if you think others should/n't read this. I have enough ego^H^H^Hkarma. Thanks!
    1. Re:Thank you, thank you! by _Sprocket_ · · Score: 5, Insightful


      To me, that why the story of RealNames on /. is worthy of mention; because of /., not RealNames.


      I'd offer a couple other reasons this story was worthy of attention.


      First, RealNames has shown up on Slashdot before. And as chrisd points out in this article, RealNames is a posterchild for dubias business strategies that involve shoving the Internet in to one's own private monopoly. It wouldn't be suprising that the ultimate failure of this company wouldn't show up as a followup on Slashdot.


      Secondly, the recent shenanigans has opened up dialog on a great subject: Microsoft isn't always in the wrong. If the CEO of RealNames had posted on Slashdot, he would have been labled a troll. Posters didn't fall for the bait. They noted RealNames was a Bad Idea and Microsoft, for once, wasn't doing anything worthy of ire. I saw the article subject not as "look what evil Microsoft has done now", but rather "look at who this guy is claiming as a scapegoat".


      Lets not get carried away. Microsoft does plenty to attract criticism. But to be fair - Microsoft should be criticized only when their actions ARE appropriate. Microsoft doesn't deserve to be roasted when some scam artist wants to jump on the Microsoft-illegal-behavior-awareness bandwagon.

  4. On Alternates To DNS/ICANN by xRizen · · Score: 4, Interesting

    RealNames wasn't exactly the best idea, I think we can all agree. But can anyone think of a system that is *seriously* better at everything DNS does than DNS? Even if someone could, who's to say that it would be adopted? IMO, DNS is far too entrenched to be pushed away at this point. Switching to another system would most likely be even more difficult than the switch to IPv6.

    Beyond RealNames and other DNS-alternatives, it seems like once every year or two, a bunch of tech geeks get up on an anti-ICANN fit. They go off and create an alternate NIC, but about a year later, it's been mostly abandoned. It seems to me that until a large portion of the geeks (preferably those who control some of the lower-tier DNS servers) really unite and get serious, we may be stuck with ICANN, as sad as that may seem.

    1. Re:On Alternates To DNS/ICANN by NutscrapeSucks · · Score: 5, Interesting

      Somebody else said it first, but DNS was not supposed to be a keyword system.

      But yet that's exactly how people have treated *.COM, and everytime we have a story about squatting or ICANN or CompanyReallySucks.com, slashdot gets up in arms and starts proposing reforms and reorgs and so on.

      So some company comes along and tries to make a keyword system apart from DNS, and what's Slashdot's reaction. Well, they suck too, the leeching bastards. I don't get it.

      Alternate NICs are not a solution the abuse of DNS -- they do nothing more than attempt to extend the misuse of the system.

      Keywords and Search are the solution, and RealNames was not a bad idea. Lets put the stupid squatting and trademark junk in their database instead of our DNS system. Let them worry about the problem of how to find "Something" on the internet without resorting to "Something.com".

      Having RealNames punted by MS is a good thing in this respect. Hopefully browser developers will come up with a system where you can plug in as many Keyword Systems as you'd like (just like you can with search engines). I wouldn't mind an automatic Google Are You Feeling Lucky? feature in my address bar.

      --
      Whenever I hear the word 'Innovation', I reach for my pistol.
    2. Re:On Alternates To DNS/ICANN by PhReaKyDMoNKeY · · Score: 4, Insightful

      chrisd: If you are a company trying to establish a web presence, do you choose the system that everyone has agreed on and publicize your url "http://www.bobstigerrentals.com" ? Or do you put: "RealName: Bob's Tiger Rentals" in your ads?

      I know I've seen plenty of ads with "AOL keyword: so-and-so" on TV, in magazines, and elsewhere. It seems to work for them okay.

      NutscrapeSucks: Somebody else said it first, but DNS was not supposed to be a keyword system.

      North America was supposed to be an extension of the United Kingdom. Slashdot was supposed to be a forum for rational discussion. We all know how that turned out. People adapt things to their own purposes.

      Keywords and Search are the solution, and RealNames was not a bad idea. Lets put the stupid squatting and trademark junk in their database instead of our DNS system. Let them worry about the problem of how to find "Something" on the internet without resorting to "Something.com"

      The current system isn't going anywhere anytime soon, like it or not. It's become too ingrained. Besides, keywords would have all the same problems. Eventually they'd all point you to porn. You were right about one thing, though. Search is a solution. With search engines (most notably, Google) actively updating and trying to help increase the relevance of your search results, as well as filtering the bulk of the junk, we are able to navigate the insanity of the internet quite a bit more efficiently. Hopefully they can remain on top of web spammers' techniques for a long time and save us all a lot of grief.

  5. Yes, but... by NoMoreNicksLeft · · Score: 4, Funny

    This is the statistical anomaly that will never happen again. M$ used their one "get to be right for free" card on knocking down realnames, so it's safe to assume they'll *never* *ever* be right again.

    Satisfying, in a way.

  6. Time to change our passwords... by Anonymous Coward · · Score: 5, Funny

    Seriously, someone who can plant a story like this must be able to see them, right?

  7. Real Names sucks, 'cept for ALL of Asia by nicholas. · · Score: 4, Insightful

    As much as we English loving types had no use for real names, it was a viable way for Asian countries to use their own characters for DNS entries. It had a chance of being a standard. Granted, a skewed results go to the hightest bidders standard, but it was probably better than entering and IP everytime you wanted to visit a site.

    1. Re:Real Names sucks, 'cept for ALL of Asia by fungus · · Score: 4, Informative

      Unicode DNS exists.

      Even Microsoft supports it.

      Some internet draft...
      another interesting one.

  8. Re:Why are you posting this? by jonnythan · · Score: 4, Insightful

    Is Slashdot just the editor's personal soapbox?

    Um, yes. Slashot always has been (and I imagine it always will be) a site for Rob and friends to post stories they find interesting, review books and movies they think are worth reviewing, and just say shit they think is worth saying.

    How on earth did you miss this, having a low 5 digit UIN?

    And another thing.. No one was lecturing you. chrisd posted a story about a case where someone is attempting to victimize Microsoft, possibly to give a little spin to the standard Microsoft bashing. Just deal with it.
  9. 10 Headlines You Thought You'd Never See on /. by zaius · · Score: 5, Funny
    10. Natalie Portman tops worlds ugliest people list.

    9. Beowulf clusters aren't so useful after all

    8. IIS beats Apache in recent security audits

    7. JonKatz reviews _______ in less than 1000 words

    6. [Lucent | IBM | Intel] [invents | patents] [single molecule | [carbon | other element] nanotube | really small] [transistor | hard drive | computer] (wait... maybe we have seen that one before...)

    5. CowboyNeal read this (marry me)!

    4. 133t k1dd13z h4x0r3d /.

    3. BeOS returns, outperforms Linux

    2. Sometimes, Microsoft is right...

    1. Bill Gates buys U.S. Supreme court, clears M$ of all charges.

  10. Live by the sword, die by the sword, or by MS by Seth+Finkelstein · · Score: 5, Insightful
    In one line, RealName's business model was to leverage Microsoft's desktop monopoly, into being a DNS monopoly. To be melodramatic, the problem is that when you act as a henchman for someone who is trying to Rule The World, never forget that the would-be world-ruler has no loyalty to you. Only to how you fit into the world-ruling strategy. It's a complicated and difficult task to attempt to Rule The World. When strategies change, the specialists recruited to implement the former strategies, will be gone. And so came to pass with RealNames.

    They attempted to live by the Microsoft monopoly-sword, and now they die by the Microsoft monopoly-sword.

    This is not, though, Microsoft necessarily being "right", so much as having failed in one Rule The World gambit, and rationally, cut its losses. That's not the same thing at all.

    Sig: What Happened To The Censorware Project (censorware.org)

  11. Not True by waldoj · · Score: 5, Informative

    As much as we English loving types had no use for real names, it was a viable way for Asian countries to use their own characters for DNS entries. It had a chance of being a standard.

    Speaking of standards...

    The IETF Internationalized Domain Names Working Group
    IBM On Unicode Domain Names
    Slashdot: Why Unicode will Work on the Internet
    Verisign's Internationalized Domain Name Testbed

    -Waldo Jaquith

  12. Realnames closure is hurting in asia.... by os2fan · · Score: 5, Insightful
    If the Register is anything to go by. the closure of Realnames is hurting people who rely on it to surf the net in their own languages (eg Japan, China). But the post is relatively silent on this matter.

    I mean, Google is a good idea in the west, but in the east, it's still an english-language tool. And it's not just google: realnames was using the address line, so that {asian glyphs} were substutuded with {european letters}.

    --
    OS/2 - because choice is a terrible thing to waste.
  13. Feature-Writing 101: Don't Insult the Readers by guttentag · · Score: 4, Insightful
    I don't need to explain to the Slashdot reader why RealNames was a poor idea. It is something you feel in your gut.

    To our credit, Slashdot readers and editors have mostly thought that RealNames was a foolish and pointless money wasting exercise...

    This is the journalistic equivalent of beginning your presentation with the phrase, "if you don't agree with me, you're a moron."

    Even lazy reporters aren't rarely so brazen. They try to make up for their lack of research/interest by inserting the word "clearly" at the beginning of a sentence. They think it absolves them of their responsibility to inform -- I call it "intellectual bullying."

    I'm not picking on your writing or trolling about your opinion. I happen to agree with your assessment of RealNames, but if you can't present your argument without the bullying your argument doesn't deserve a forum. Slashdot editors, please consider this before accepting/writing features.

  14. west coast by Satai · · Score: 4, Funny

    Sometimes, Microsoft is Right...

    Uh, Chris, did you forget again that the west coast viewers haven't seen the show yet?

    Mulder: Dana, the cigarette smoking man told me something... Something important.
    Scully: Fox, what is it?
    Mulder: Microsoft was right.

  15. Missing the point by kteare · · Score: 5, Interesting

    Chris you are missing the point. Any reading of my WebLog at teare.com must lead you to the conclusion that the inability of DNS to support multi-lingual characters requires fixing, and that right now ONLY RealNames fixes this natively in the browser that is on 90% + desktops. Microsoft are now about to hard code the browser to Microsoft's OWN middleware - the MSN Search Engine. If you type "IBM Thinkpad" into the browser you will get an MSN Search result. Even if you do not like RealNames (its a free world) you have to acknowledge that ending up on the ThinkPad page at ibm.com is the right outcome. How you can support Microsoft tying the browser to exclusively Microsoft controlled middleware - and by so doing disable every language except English (7 bit ASCII actually) is baffling to me. Incidentally the business model you describe was abandoned many years ago. Keywords were $50 per year flat fee or $500 if it was a top brand with high traffic. Keith Teare Former CEO RealNames Corporation

    1. Re:Missing the point by Darby · · Score: 4, Insightful
      Even if you do not like RealNames (its a free world) you have to acknowledge that ending up on the ThinkPad page at ibm.com is the right outcome.

      What if you are looking to buy a used laptop?
      What if you want information about getting Plan9 running on your thinkpad?
      What if you want something *besides* the highest bidder.

      The same holds true regardless of the language.

      Your business was idiotic and helped nobody but you.

      Remember on your blog where you said:
      I hope I can make sure other entreprenuers learn the lesson of this before they repeat my mistake.


      You didn't learn from the mistakes of all of the others who the same exact thing happened to.
      Had you done the most cursory investigation of Microsoft you would have known this would happen.

      When you said this though I had to laugh:
      I have a lot of respect for Microsoft in general and a good company doesn't allow things like this to go unpunished or uncorrected.


      This is their SOP. If you respect that, then you are a fool.

    2. Re:Missing the point by _Sprocket_ · · Score: 5, Insightful
      Keith, your belief in your former company is commendable in its own way - we should all believe in what we do. But in re-stating your points here, it seems like you're missing the point yourself. Let's go over your points and hazard a guess why they're not gleefully received:


      Any reading of my WebLog at teare.com [teare.com] must lead you to the conclusion that the inability of DNS to support multi-lingual characters requires fixing, and that right now ONLY RealNames fixes this natively in the browser that is on 90% + desktops.


      I am not familiar with this issue, but according to some of the posts under this article (and some excellent provided links) the issue is in work, and in fact some of the solutions are being implemented. Your solution may have provided a nice stop-gap now... but ultimately it was a monopoly in competition with the existing system. The entire Registrar game has been quickly moving away from single monopolies - with good reason. I'm affraid you're stuck in the past.


      If you type "IBM Thinkpad" into the browser you will get an MSN Search result. Even if you do not like RealNames (its a free world) you have to acknowledge that ending up on the ThinkPad page at ibm.com is the right outcome.


      That's a pretty easy call. But what if I type in the word "peppermint"? Should it go to peppermint.com (Peppermint Productions)? How about www.peppermints.com (Penguin Mints)? Or maybe www.altoids.com (Altoids)? Suddenly its not so obvious. Unless, of course, your company refused to sell a generic keyword. But c'mon... we both know it went to the first/highest bidder. And frankly, that makes your point pretty moot.


      How you can support Microsoft tying the browser to exclusively Microsoft controlled middleware - and by so doing disable every language except English (7 bit ASCII actually) is baffling to me.


      Look around. There's been grumbling about this practice (even replacing 404's with a MS search result). But it seems that replacing one monopoly with another is little to get excited about. The entire practice stinks. RealNames was just an interchangable part of the problem.


      You're a business guy. Your baby was slaughtered. A lamb that was shocked when the pack it ran with decided to stop for lunch. But if you think you can gain support in this forum by simply pointing your finger at Microsoft, you've gravely misunderstood Slashdot's collective culture. And you've missed the real root of the complaints against Microsoft.

  16. mixed metaphors by kyras · · Score: 5, Funny

    Keith and his coworkers were very happy to tie their horse to Microsoft while Microsoft was willing to pull them.

    Perhaps their first mistake was tying their horse to something in the hopes that it would get pulled...

    --
    Tastes like burning! - Ralph Wiggum
  17. He is missing the whole point by rveno1 · · Score: 4, Insightful

    Ok So RealNames picked an idea that was somewhat obvious. They are allowed to do that (Its a free market).
    What everyone is missing is WHAT IF MICROSOFT STARTS DOING THE SAME THING IN HOUSE?. Than what will we say?.

    I see this becoming an issue when someone will be typing " web browser" in the adress bar and Microsoft redirecting them to IE (or pick your own example where microsoft decides where you will end up)
    Remember That ALL Default settings in Microsoft's Browser points to thier own in jouse web sites. )and to change that setting you have to be a little tech savvy.

  18. Link to RealNames CEO account has changed by Seth+Finkelstein · · Score: 4, Informative
    By the way, Keith Teare's story has moved off his site's front page, which is the link given in the Slashdot link above in the story RealNames CEO Talks Back

    It's now an unobvious deep-link into the archives

    Also available elsewhere

    Sig: What Happened To The Censorware Project (censorware.org)

  19. poetic justice by g4dget · · Score: 5, Insightful
    The CEO of RealNames is experiencing just what people have been complaining about in the anti-trust lawsuit: because of Microsoft's monopoly, Microsoft gets to pick the winners and loser in the market. As long as Microsoft picked RealNames as a winner, this was really swell for them. Teare even went so far as to publically say that Microsoft was not a monopoly and that there were no problems with competition. Now that Microsoft has made them losers, he is whining about it.

    This should be a warning to any company that bets their business on being Microsoft's favorites rather than on innovating and competing independently. The lesson is actually quite independent of Microsoft: it is a fundamental mistake to build your business on a relationship with a single corporate partner. It just happens to be the case that in the software space, in some areas, there is no other partner around besides Microsoft.

  20. I'm not convinced... remember Smart Tags? by guttentag · · Score: 4, Insightful
    Sometimes, Microsoft is Right...
    I'm sure Microsoft is right sometimes, but I'm not convinced that this is one of those times. Whenever Microsoft does something apparently benevolent, I sit back and ask myself: "What do they have to gain by doing this?" A huge corporation with shareholders to please and a pocket full of powerful monopolies doesn't do anything that's not in its interest.

    Remember Smart Tags? They were designed to give Microsoft the influence and revenue stream RealNames's technology had... but on a broader level. RealNames was confined to the location bar, while Smart Tags could modify the contents of a Web page. Microsoft has a history of getting close to companies that have a hot new idea just long to figure out what makes it tick . Then it incorporates the idea into its products and either acquires the partner (Vermeer, VXtreme, etc.) or drops it like a rock (Novell).

    I believe Microsoft dropped RealNames because they sucked all the intellectual lifeblood it could from the company, not because it thought RealNames was a bad idea. Microsoft shelved (turned off) the Smart Tags feature under heavy criticism, but made a point of stating the feature may be released in a future version of IE.

  21. Freudian slip? by British · · Score: 4, Insightful

    , and many of us don't use IE

    You said that in reference to Slashdot users. Perhaps you were meaning to say that in reference to Linux users? I find it hard to believe most Slashdotters, no matter how big of linux zealots they are, are using Mozilla or Opera. Many of us surf at work, and our only choice is IE.

  22. if Slashdotters could moderate articles... by ceejayoz · · Score: 4, Funny

    Sometimes, Microsoft is Right... (Score:-1, Flamebait)

  23. Outside? Bah! by krmt · · Score: 5, Funny

    But why would you want to go outside? If hell has frozen over, then surely Debian stable has been released, Mozilla has hit 1.0, Duke Nukem Forever is out, and you're probably putting off having sex with a supermodel to play with all that new software.

    --

    "I may not have morals, but I have standards."

  24. www.google.co.jp by Tottori · · Score: 4, Insightful
    I use it regularly.

    In fact, even www.google.com will automatically select the Japanese language if you're browsing from Japan (not sure if they're going off browser settings, IP address, or DNS).

    All this talk about how the DNS desperately needs to be internationalised overlooks one vital fact: the DNS intentionally uses a limited character set. a-z, 0-9 and -, that's it. This allows hostnames to be used in all kinds of useful places without quoting (like URLs!). And it means they have a single, unambiguous, canonical representation.

    If I can register ".com", shouldn't someone else be able to register "/.org"? How about "slashdot.org"? If not, why not?

    DNS names are mnemonics, not keywords. Their purpose is to be easy to remember, not to provide a human-language description of the domain. If you want to search for something, please use a search engine. That's what they're there for. Any reasonable browser will let you search from the URL bar.

    --
    use constant PERL_IS_BROKEN => $] >= 5.006;
  25. Re:No, he's got a legitimate complaint by tdye · · Score: 4, Insightful

    MS didn't reneg on their agreement. They just decided not to renew their contract. The effect of that, of course, was to put RealNames out of business. Apparently MS didn't want them around, even though they offered an attractive package.

    That's perfectly within MS's rights, and isn't dishonest, mean-spirited, or anything else. If you make your money selling water you draw from my pump, you have little right to bitch if I decide to buy a box of dixie cups and stop renting the pump to you when your lease is up.