America Online and Microsoft are gearing up for launches of their latest Internet software, and as with prior releases will try to match and outdo each other with new features-this time with an eye on customization. While Microsoft, of Redmond, Wash., has been forthcoming with many of the new features due in MSN 8, AOL has tried to keep things quiet until the software is formally launched. However, sources say there's quite a number of similarities between the two offerings.
For example, while Microsoft stresses MSN 8's new parental controls, customization, elegance, and the best e-mail functionality, the core of AOL 8.0 is expected to be similarly customizable and feature an improved look and feel. With 8.0, AOL has included several new features that allow users to customize how the service looks. "AOL Desktop Themes" allow for customization of the background within the AOL client, similar to the wallpaper function within Windows. "Toolbar Themes" let the look of the toolbar at the top of the AOL window to be changed.
A growing trend of ultra-cheap computers is threatening to damage Microsoft's hold on the desktop software market by attacking the core market to which Windows and Microsoft Office actually sell: PC bundles. Microsoft sells the majority of its Windows and Office licenses preinstalled with new PCs, but as PC prices fall--to as low as $200 a box this year--the cost of Windows and Office licenses, as a percentage of the total system cost--is rising dramatically. That's causing PC makers to look at alternatives in ever increasing numbers, to both of Microsoft's core products.
Microsoft's first operating system designed for the corporate data center has garnered sparse acceptance since its release last year, but the software is on the verge of a performance upgrade that experts say could put it on the road to corporate recognition.
Early next year Microsoft plans to release Windows.Net Server 2003 Datacenter, a 64-bit operating system that will boast more addressable memory for high-level transaction processing and up to 25 percent better performance compared with the 32-bit version. The 32-bit version of Datacenter was intended to be Microsoft's answer to 64-bit Unix systems and mainframes in corporate data centers. It's sold as a hardware and software combination through system vendors, such as Hewlett-Packard, IBM, NEC, or Unisys, which guarantee the stability of the package through rigorous testing and certification.
AT&T Wireless Services is offering a new service that will allow corporate mobile phone and laptop users on the road to tap into information stored on their desktop computers using software from Microsoft. The two companies said the service, called AT&T Wireless WorkWare, will provide seamless, wireless access to software giant Microsoft's applications so users can retrieve e-mail, schedule book, and documents behind corporate firewalls. Unlike many of the services that require technicians to physically set up the devices, AT&T Wireless' service can be activated wirelessly. AT&T Wireless and Microsoft first announced their partnership in July. The alliance was seen as a key step in the world's largest software maker's strategy of taking its software beyond the desktop.
Microsoft is putting the finishing touches on the second release candidate, or near-final testing version, of Windows .Net Server 2003, sources said. The clock is ticking for Windows .Net Server 2003, an operating system that is used to run high-end computers that manage everything from checking passwords to keeping track of a corporate payroll. The new system is also the foundation of Microsoft's .Net Web services initiative, geared to power advanced Internet operations.
"I would not be overly surprised if Microsoft released something (soon) and called it the second release candidate," said Directions on Microsoft analyst Michael Cherry. But Cherry, who used to work with the Windows group at Microsoft, questioned whether the company could get the final product to customers this year.
Samsung Electronics on Tuesday unveiled an advanced mobile phone based on Microsoft Inc's software to better connect to the Internet, send e-mails and play games. "The cellphones will be available to consumers as early as late this year but we have to consider various things before rolling them out," said Samsung spokesman Kim S.H. Samsung introduced the Microsoft-based mobile phone, which also features a colour screen and is equipped with a digital camera, at an exhibition in Korea, which runs until Saturday.
The cellphones, if commercially launched, will be a breakthrough for software giant Microsoft, which has sought growth opportunities from wireless devices. Microsoft launched mobile versions of its dominant Windows desktop computer operating system for smart phones and wireless handheld computers last year.
Microsoft traditionally has steered clear of tele- communications regulators and legislators, but the software company is raising its profile in Washington in a bid to spur rapid deployment of more affordable high-speed networks. Microsoft views faster, cheaper pipes, particularly emerging wireless broadband networks, as a conduit for selling more applications and services.
The subject of a highly contentious and protracted debate in Washington, broadband deployment policy pits RBOCs (Regional Bell Operating Companies) against most other telecom service providers, including long-distance companies, Competitive Local Exchange Carriers and cable companies. For more than two years, RBOCs have waged a vigorous campaign to roll back regulations requiring them to lease rivals access to the "last mile" of the network at regulated rates.
Microsoft's annual Exchange user conference this week will be somewhat of a strategic juggling act as the company highlights the product's future while trying to continue developing an efficient messaging infrastructure. The company also will have a third ball in the air with the ongoing task of convincing users to adopt Exchange 2000 - which more than 70% of the installed base has yet to embrace - while fighting off competition from low-cost alternatives to such a move.
Microsoft's challenge is to show corporations the value of Exchange as it evolves into its role in Microsoft's .Net Web services strategy, including why some of Exchange's traditional features such as instant messaging and conferencing are moving to the Windows .Net Server 2003 operating system. That switch will have a direct effect on IT as responsibility for some collaboration functions moves from Exchange administrators to network operating system administrators.
Microsoft the world's biggest software company, is hoping to make new inroads into Iowa after changes this summer in the way its sales force is structured. In a pilot program that could later become a model for the Redmond, Wash.-based company throughout the United States, Microsoft's sales team now focuses on specific industries instead of divvying up customers according to size. The changes could have a big impact for businesses that use Microsoft?s products, according to David Hemler, general manager for the company's North Central District, which includes Iowa, Minnesota, South Dakota, North Dakota and Nebraska.
Microsoft and Intervoice, a provider of converged voice and data applications, have partnered to promote Microsoft's version of open standards-based speech applications. The strategic alliance calls for cooperation on tech development, as well as sales and marketing, for the upcoming Microsoft .NET Speech platform, a multimodal infrastructure that is based on Speech Application Language Tags (SALT) and designed for multiple clients, such as PCs, telephones, PDAs and next-generation laptops.
The agreement calls for Intervoice to deliver and deploy SALT, ASP.NET and Microsoft .NET Speech platform-based applications, as well as to integrate its telephony call management technologies with the Microsoft .NET Speech platform and port its packaged and vertical applications to SALT. The companies said the partnership will focus heavily on developing ASP.NET and SALT-based speech applications for enterprise customers that use or could benefit from IVR technology.