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Embrace, extend, and extinguish

Anti-competitive business strategy

  • 6 min read
  • 4 chapters

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Origin

The strategy and phrase "embrace and extend" were first described outside Microsoft in a 1996 article in The New York Times titled "Tomorrow, the World Wide Web! Microsoft, the PC King, Wants to Reign Over the Internet", in which writer John Markoff said, "Rather than merely embrace and extend the Internet, the company's critics now fear, Microsoft intends to engulf it." The phrase "embrace and extend" also appears in a facetious motivational song by an anonymous Microsoft employee, and in an interview of Steve Ballmer by The New York Times.

A variant of the phrase, "embrace, extend then innovate", is used in J Allard's 1994 memo "Windows: The Next Killer Application on the Internet" to Paul Maritz and other executives at Microsoft. The memo starts with a background on the Internet in general, and then proposes a strategy on how to turn Windows into the next "killer app" for the Internet:

In order to build the necessary respect and win the mindshare of the Internet community, I recommend a recipe not unlike the one we've used with our TCP/IP efforts: embrace, extend, then innovate. Phase 1 (Embrace): all participants need to establish a solid understanding of the infostructure and the community—determine the needs and the trends of the user base. Only then can we effectively enable Microsoft system products to be great Internet systems. Phase 2 (Extend): establish relationships with the appropriate organizations and corporations with goals similar to ours. Offer well-integrated tools and services compatible with established and popular standards that have been developed in the Internet community. Phase 3 (Innovate): move into a leadership role with new Internet standards as appropriate, enable standard off-the-shelf titles with Internet awareness. Change the rules: Windows become the next-generation Internet tool of the future.

— J Allard, Windows: The Next Killer Application on the Internet

The addition "extinguish" was introduced in the United States v. Microsoft Corp. antitrust trial when then vice president of Intel, Steven McGeady, used the phrase to explain Maritz's statement in a 1995 meeting with Intel that described Microsoft's strategy to "kill HTML by extending it".

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