"If they can successfully integrate SSL, it means encrypted transmission will become possible. In the future, our BBS logins and even the web version of ICQ won't have to worry about passwords being sent in plain text anymore. This is the key to fully web-enabling our business."
"Regarding that—" Frank lowered his legs from the desk, his tone becoming hesitant. "The security experts in the Technical Department evaluated SSL 2.0. Their assessment was quite harsh, even scathing. They said the current security of that thing is like a paper-mâché burglar-proof door."
Frank flipped to another page of the report and read aloud, "Man-in-the-middle attacks, rollback attacks—as long as a hacker is determined, this protocol is riddled with holes. If we move our user-facing businesses onto it now, and something goes wrong, the resulting data leak would be disastrous for us."
"Your team is very professional, and caution is the right approach." Takuya Nakayama showed no disappointment; instead, he smiled. "Since we know there are holes, let's fix them."
"We'll patch it? But this is a Netscape product."
"Talk to Netscape. Silicon Valley Online is the traffic king of America right now. It's not unreasonable to propose a partnership. Tell them we're willing to cooperate, even offer our security team's support. Urge them to release a more secure version soon, like $SL3.0. Explain that only by fixing this vulnerability will Silicon Valley Online, this behemoth, consider migrating their operations to the web. This benefits both sides."
Frank understood.
This wasn't just about technical cooperation; it was about using the partnership as a pretext to seize control of setting Internet security standards.
Frank on the other end of the line had clearly moved beyond the security protocol discussion. The inherent greed of a businessman made him immediately sense bigger prey.
If Netscape's technology was so crucial to Silicon Valley Online's future web migration strategy, why cooperate when they could simply acquire them outright?
"Takuya, if we're going to fix their vulnerabilities and even back the SSL Protocol with our reputation, why not just go all the way?" Frank's voice carried a ruthless edge, the kind forged on Wall Street and in the cutthroat world of business. "Netscape is just starting out, their valuation isn't that high yet. Let's invest directly, or even buy them out outright. Make the browser Silicon Valley Online's private property—that would solve everything, wouldn't it?"
Takuya Nakayama listened to Frank's bold pronouncements over the phone, his fingers gently stroking the warm ceramic of his coffee mug.
Frank's idea was perfectly aligned with the logic of business titans in this era: winner-take-all.
But on the battlefield of browsers, this logic was a trap.
"Investing is fine—we can treat it as a financial investment. We'll probably make a quick profit." Takuya didn't agree with the acquisition proposal. "But let's forget about buying them out. There's no need to take on this hot potato. The browser itself has a fatal Achilles' heel."
"A weakness?" Frank paused, surprised. "You mean that security vulnerability we just discussed? We can fix that—"
"No, it's a fundamental flaw in the lower tiers of the industry chain," Takuya Nakayama interrupted, avoiding a direct answer and instead posing a rhetorical question. "Frank, what do you think will be the first gateway for users to access the internet in the future?"
"The browser, of course," Frank answered without hesitation. "That's why I want to acquire Netscape."
"Exactly. But what lies beneath the browser? What must a user open before they can even launch a browser?"
There was a brief silence on the other end of the line, followed by Frank's slightly hesitant voice: "—The Operating System?"
"Bingo." Takuya Nakayama smiled, but his voice carried a cold edge. "If one day, either Microsoft or Apple, those giants controlling the operating systems, suddenly wake up to this. They could develop their own browser, modeled after the most popular one on the market, and bundle it directly into their systems as the default startup program. They could even deeply integrate this browser into the system kernel, making it faster, more stable, and completely free. Do you think ordinary users would bother to download, install, and pay for Netscape Browser anymore?"
The words were like a bucket of ice-cold water, doused over Frank's head through the phone line.
As a veteran of the IT industry, Frank knew the ways of Microsoft and Apple all too well.
If Bill Gates and Steve Jobs saw such a lucrative opportunity as the browser market, they wouldn't sit idly by.
Once an operating system vendor enters the fray, it's no longer a matter of fair competition—it's a dimensional attack.
"Damn it..." Frank cursed under his breath, a cold sweat instantly breaking out on his back. "That's the landlord setting up shop himself—the tenants won't stand a chance."
This sense of crisis immediately made him think of their own core business.
His breathing quickened: "Wait, Takuya. What about 1CQ? ICQ is also software that runs on an operating system. If Microsoft bundles a instant messaging program with Windows, aren't we—"
He trailed off, suddenly freezing.
He remembered the backend data he'd just seen for ICQ, Johnny who'd spent money on skins to show off to the girl he liked, and those users who stubbornly refused to switch software, clinging to their chat logs and friend lists.
"No—no, that's not right," Frank said, his tone regaining its composure, even tinged with relief at narrowly avoiding disaster. "1CQ is different. Even if Microsoft released 'Microsoft Chat' tomorrow, as long as their social network remains with us, they won't be able to pull users away. No one would abandon their hundred hard-won friends just to save a few minutes on a software download."
"It seems you've figured it out," Takuya Nakayama said, taking a sip of his coffee. "Software can be replaced, but social networks can't. That's 1CQ's deepest moat, and the reason we can stand tall before Wall Street."
"So, what we really need to watch out for are businesses with extremely low user switching costs and weak dependence on specific software," Takuya Nakayama said, bringing the conversation back to the main point. "Take Nebdir, for example. Users use it now purely for convenience. But if Netscape Browser shipped with 'Netscape Navigator' built-in, or if Microsoft later put a 'Must-Visit Sites' icon on the desktop, our traffic would be siphoned off instantly."
BBS has its community atmosphere and archived posts, ICQ has its friend networks, but Nebdir is just a signpost.
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