Chapter 44: Hardware License

Even for another software company like Oracle, things weren't going well. Ever since their tussle with White Software, Larry Ellison had become something of a laughingstock. When people are obviously indifferent, trying to make a fuss only makes you look foolish. In the eyes of Silicon Valley bigwigs, William White was arrogant and didn't regard these old folks highly. While they faced their competitors, he calmly went off to make a movie, and the most irritating part was that the film was a huge success. While others dismissed microcomputers as junk, he developed a database specifically for them, and insiders thought it performed well. According to plans for their next version, even if it didn't match up to minicomputers, the gap was very narrow. This situation showed that it wasn't because they couldn't make large databases, but rather they chose not to venture into that field due to the limited number of users. They didn't want to join the crowd. The old folks were getting worried now. If the trend continued, they'd all become historical terms. A microcomputer didn't cost much, and the software was cheap too. But when everything was measured in tens of thousands, everything was different. In less than five years, their revenue could jump through many levels. By that time, a few big companies might end up getting acquired. ... "Boss, we got word that White Software has licensed out all its hardware. We don't know the specifics of the deal, but they've given up on hardware production." Seeing his confused subordinate, the Big Blue executive was troubled. White Software's strategic withdrawal seemed costly since these assets weren't undervalued. Splitting them now didn't seem like the smartest move. "Who got these licenses? About how much did they pay?" "Three Japanese companies received the licenses. They didn't buy directly; they're using a revenue-sharing model." "Alright, I got it. You can carry on." ... William White wasn't keen on a buy-out deal. He knew exactly how big the business of adapter cards was. These unassuming little things eventually opened up a market worth billions of dollars, making it quite a lucrative business. Don't be fooled by America's high unemployment rate. If you dared to open a factory, workers would drag you down with them. Americans liked their work unrestrained. For this kind of assembly line hard labor, it was impossible to find skilled workers. The employee turnover rate would exceed 100% yearly, leaving your company's HR just hiring workers every day. White-labeling or licensing was better. Even if it brought less than a 5% return, it was guaranteed income. As long as they sold, he'd get paid. At first, the Japanese didn't like this method. They wanted outright purchases. William White wasn't dumb. Motorola's 6500 had been sold directly, and in return, they'd made tons of dollars for decades, producing over a billion CPUs. If you calculated what they paid, the licensing was nearly free. What? You disagree? Fine, we'll just find someone else. We never planned to license to just one company. If it gets too troublesome, we'll sell to the Germans. They can meet the requirements too. Embarrassed copying American products? Right now, they wouldn't dare. Just one car issue made America angry. If you acted recklessly, you'd definitely get fined until you doubted your existence. Americans protected their high-tech industries often without scruples. In extreme cases, they might even detain the other party's executives first. Relying purely on patents and designs for income was rare in this era. William White's approach was unusual. American factories could do the same thing, but they weren't interested in sales. Who knew how long your product would sell? It might stop selling right away. William White had no obligation to help these folks. With equivalent terms to others, their partnership was done for. Consider this: they even sold their memory factories to the Japanese. How could they be interested in electronic processing? ... White Software's database was about to launch. Whether the bigwigs liked it or not, they'd already done it. The entry barriers to using databases were greatly lowered, no longer just for the elite. That was a fact now. Trying to keep fooling customers wasn't going to be easy. If they didn't drop prices, they'd likely be toast. William White was not as open-handed as he seemed. While he wasn't as confrontational as Steve Jobs, his counterattacks were more effective. Oracle's continually dropping stock was enough evidence. Yes, he could still claim the software wasn't any good. But it was obviously useless. Their prices were positioned so competitively. With such a price difference and minimal performance gap -- mostly attributable to hardware -- there wasn't much room for argument. You had to admit they were truly a conscientious company. Your software and services were just too expensive. Are you treating us like pigs to be slaughtered? White Software completely changed the software ecosystem. For newcomers, that was great news. If you could offer novel and practical software, consumers would buy. For the old folks, it was disastrous. The issue wasn't big now, but over time, change was necessary, or they'd face severe setbacks. ... "Young master, silver has reached our target. Should we sell?" Seeing Fulton's excitement, William White replied, "Yes, but it must be slow. Don't let anyone notice. Out of the market in two months is fine. Ignore London for now." "Alright, young master. The Hunter family really made a mark this time." "Haha, those fearless folks, recklessly manipulating silver. If they keep it up, they're doomed," said William White with a mischievous smile. "Rumors are spreading in the market, and none of it's pleasant." "Returning to the silver standard? The Fed isn't that dumb." With help from the desert tycoons, the Hunter family was absolutely dominant, seeing everyone as beneath them. It pretty much was like that. William White had put in just a few million, already making a killing. Once the futures contracts were all cleared, profits would surely be in hundreds of millions, with the high leverage. The Hunter family invested billions, and there's no need to say how much profit that brought. ***** https://www.patreon.com/Sayonara816.