Encyclopedia of Computer Science and Technology

Andreessen, Marc 15created the first big “dot-com,” or company doing businesson the Internet.Born on July 9, 1971, in New Lisbon, Wisconsin,Andreessen grew up as part of a generation that wouldbecome familiar with personal computers, computer games,and graphics. By seventh grade Andreessen had his own PCand was programming furiously. He then studied computerscience at the University of Illinois at Urbana-Champaign,where his focus on computing was complemented by a wideranginginterest in music, history, literature, and business.By the early 1990s the World Wide Web (see WorldWide Web and Berners-Lee, Tim) was poised to changethe way information and services were delivered to users.However, early Web pages generally consisted only oflinked pages of text, without point-and-click navigation orthe graphics and interactive features that adorn Web pagestoday.Andreessen learned about the World Wide Web shortlyafter Berners-Lee introduced it in 1991. Andreessen thoughtit had great potential, but also believed that there neededto be better ways for ordinary people to access the newMarc Andreessen, Chairman of Loudcloud, Inc., speaks at Fortunemagazine’s “Leadership in Turbulent Times” conference on November8, 2001, in New York City. (Photo by Mario Tama/GettyImages)medium. In 1993, Andreessen, together with colleague EricBina and other helpers at the National Center for SupercomputingApplications (NCSA), set to work on what becameknown as the Mosaic Web browser. Since their work waspaid for by the government, Mosaic was offered free tousers over the Internet. Mosaic could show pictures as wellas text, and users could follow Web links simply by clickingon them with the mouse. The user-friendly programbecame immensely popular, with more than 10 millionusers by 1995.After earning a B.S. in computer science, Andreessen leftMosaic, having battled with its managers over the future ofWeb-browsing software. He then met Jim Clark, an olderentrepreneur who had been CEO of Silicon Graphics. Theyfounded Netscape Corporation in 1994, using $4 millionseed capital provided by Clark.Andreessen recruited many of his former colleagues atNCSA to help him write a new Web browser, which becameknown as Netscape Navigator. Navigator was faster andmore graphically attractive than Mosaic. Most important,Netscape added a secure encrypted facility that people coulduse to send their credit card numbers to online merchants.This was part of a two-pronged strategy: First, attract thelion’s share of Web users to the new browser, and then sellbusinesses the software they would need to create effectiveWeb pages for selling products and services to users.By the end of 1994 Navigator had gained 70 percentof the Web browser market. Time magazine namedthe browser one of the 10 best products of the year, andNetscape was soon selling custom software to companiesthat wanted a presence on the Web. The e-commerce boomof the later 1990s had begun, and Marc Andreessen was oneof its brightest stars. When Netscape offered its stock to thepublic in summer 1995, the company gained a total worthof $2.3 billion, more than that of many traditional bluechipindustrial companies. Andreessen’s own shares wereworth $55 million.Battle with MicrosoftMicrosoft (see Microsoft and Gates, Bill) had been slowto recognize the growing importance of the Web, but by themid-1990s Gates had decided that the software giant had tohave a comprehensive “Internet strategy.” In particular, thecompany had to win control of the browser market so userswould not turn to “platform independent” software thatcould deliver not only information but applications, withoutrequiring the use of Windows at all.Microsoft responded by creating its own Web browser,called Internet Explorer. Although technical reviewers generallyconsidered the Microsoft product to be inferior toNetscape, it gradually improved. Most significantly, Microsoftincluded Explorer with its new Windows 95 operatingsystem. This “bundling” meant that PC makers and consumershad little interest in paying for Navigator when theyalready had a “free” browser from Microsoft. In responseto this move, Netscape and other Microsoft competitorshelped promote the antitrust case against Microsoft thatwould result in 2001 in some of the company’s practicesbeing declared an unlawful use of monopoly power.