WinInsider

Microsoft's share in the server operating system market jumped in 2001, according to a new report, yet analysts question whether the software giant will be able to offer a repeat performance for 2002. The Redmond, Wash.-based company's market share for shipments of new server operating system licenses jumped to 49 percent in 2001 from 42 percent in 2000, according to a research report released by IDC on Monday. Over the same time period, rivals either held steady or lost market share, the report showed. The IDC numbers represent sales of new licenses, not market share for server operating systems running on computers.

In a bid to grab more of the E-mail and messaging market it already dominates, Microsoft today is releasing software designed to help users of IBM's Lotus Notes and Domino products more easily connect those applications to its nascent .Net Web-based computing architecture. Analysts say the software could pose a threat to IBM to the extent that it makes it easier for companies already looking to move to a single-vendor software environment switch from Notes/Domino to Microsoft Exchange.

Microsoft controls about 50% of the business E-mail market, while Notes holds 25%, according to Ferris Research. With business software sales slumping overall, it's hardly surprising that vendors are fighting for every seat license. A big part of the problem for many companies is a sullen European market. Over the weekend, Microsoft CEO Steve Ballmer told a London newspaper that he didn't expect European sales to pick up anytime soon.

In a sign of deepening ties between Microsoft and Hewlett-Packard, the two companies are set to announce a joint effort to push the software giant's .Net services to HP's corporate clients. Prior to the merger, Compaq Computer was one of Microsoft's closest partners, even testifying for the software giant during its antitrust trial. HP, however, had a more distant relationship. Both HP CEO Carly Fiorina and former Compaq CEO cum HP president Michael Capellas had said the new HP would leverage Compaq's relationship in an effort to forge closer ties. That appears to be happening. "Our relationship has significantly improved," Microsoft group vice president Jim Allchin told CNET News.com earlier this month.

Microsoft Corp., working to establish itself in the wireless world, is busy forging partnerships with chip makers and carriers. Last week, the Redmond, Wash., company and silicon manufacturer ARM Ltd. announced that Motorola Inc., STMicroelectronics N.V. and NeoMagic Corp. will develop ARM-based processors optimized for Microsoft's Windows CE .Net platform for mobile devices.

The processors, due by year's end, include the Motorola DragonBall processor, currently prevalent in devices that run Palm Inc.'s Palm OS. These companies join such other businesses as Hynix Semiconductor Inc., Intel, Samsung Electronics America Inc. and Texas Instruments Inc., which already build ARM-based processors that support Windows CE.

Intel and Microsoft are putting their muscle behind new WLAN components, but the heavyweights' actions have others in the industry worried they will complicate standards development and limit choices. Intel, which recently began making wireless LAN radios, plans mini-PCI cards that support 802.11a and 802.11b, which the company intends to bundle with its Banias processor for notebook PCs due in the first half of next year (see related story, Page 31).

Of greatest concern to analysts and vendors is Intel's efforts to hard-wire the still-developing 802.11a standard and put WLAN technology directly on the motherboard. Such a move could lock users into an undeveloped standard as notebook OEMs adopt the integrated Intel technology.

Sega Mobile, the wireless division of gaming giant Sega.com, announced it will offer Sega game content to devices running on Microsoft Corp.'s Pocket PC operating system.

"Expanding our offering to the wireless PC platform is proof of our commitment to provide the best in gaming to all devices," said Fred Huey, chief operating officer of Sega.com. "Now gamers can play classic Sega games anytime, anywhere."

As a developer, not only do you need to look at what platforms are out there right now, but what has been available in the past and what might be in the future. The stuff in the past is important because designing an application for say Windows XP without regard for previous versions of Windows dramatically reduces your target audience when with a (usually) minimal amount of effort you can support older versions as well. However, the important thing to look at is what the future holds. Not only does it help to know so you don't code for soon-to-be obsolete features, but it gives you the scope to begin planning.

Hewlett-Packard will work with Microsoft to make sure .Net platform implementations work well when used by large enterprises. The companies plan to jointly announce on Tuesday a worldwide cooperation initiative that will make use of HP's expertise in designing, implementing, supporting and managing large IT implementations, according to a statement preannouncing the plan. The alliance will be announced officially Tuesday at Microsoft's Synergy partner conference in Vienna where Microsoft chief executive officer Steve Ballmer will hold a keynote address.

.NET clearly bears a strong resemblance to Java. It offers many of the same features, while adding interesting additions of its own (code metadata, versioned assemblies, etc). Microsoft, however, is better positioned to create a cross-market software unification framework than Sun Microsystem's ever was (or is). This will result in a rapid expansion in .NET's popularity which eats into Java's market share as it grows to take over the development world.

1. The breadth of Microsoft's market presence. You would be hard pressed to find a software market where Microsoft does not have a strong presence. They have a popular database in SQL Server, a game console in XBox, handhelds that run PocketPC, server and desktop operating systems, a software library that includes business workhorses such as the Office suite, and CRM solutions through its Great Plains division (purchased by Microsoft over a year ago), just to name a few.

To date, the company has sold less than 275,000 Xbox consoles in Japan, compared to 10 million units sold for Sony's popular PlayStation 2. This sales discrepancy comes despite continually lowered Xbox prices and has caused many Japanese developers to focus solely on the PS2, even though the Xbox is doing well in the US. To help prevent a total collapse of its non-US developer base, Microsoft bought Nintendo's 49 percent share in Rare, the British video game maker that made Donkey Kong Country. Microsoft is also considering purchasing a Japanese video game maker, though Sony has countered its most obvious move by investing in Square, which makes the Final Fantasy games.