MSFT and INTEL target big business.
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Microsoft, Intel Target Big Business
By MARTHA MENDOZA AP Business Writer
SAN JOSE, Calif. (AP) - Leaders of Microsoft Corp. (Nasdaq:MSFT - news) and Intel Corp. (Nasdaq:INTC - news) are getting the word out that computers using their technology are ready to perform the heavy-duty chores demanded by big business.
The joint announcement from the biggest personal computer software company and biggest chipmaker is expected Wednesday. It is designed to respond to challenges to their dominance by the upstart Linux operating system, and delays in the release of Microsoft's Windows 2000 business software and Intel's newest Merced chip for business computers.
''Right now there are some big competitors,'' said Matt Sargent, a senior analyst at ZD Infobeads in La Jolla, Calif. ''These companies are saying, 'We're still here, and we're pouring resources into this business area.' ''
At the annual Workstation Leadership Forum in Burlingame, Calif., Microsoft chief executive Bill Gates and Intel CEO Craig Barrett are scheduled to speak together Wednesday morning, outlining their joint commitment to leadership and innovation in the global workstation market.
They'll also be unveiling some of they ways their team work - Microsoft's software and Intel's chips - are helping businesses.
For example, Robert Mondavi Winery is using their systems to make digital maps and analyze data about where in their orchards to plant what types of vines. And Sony Pictures Imageworks is using the combined technologies for their new digitally animated movie ''Stuart Little,'' based on the classic E.B. White book.
The joint announcement comes at a time when both companies are struggling to get products out.
Intel's Merced chip is now promised for mid-2000, along with Microsoft's Windows 2000.
Michael Erbschloe, vice president of research at Computer Economics in Carlsbad, Calif., said the announcements seem like an effort to convince consumers and analysts that ''neither one of these companies are going to jump ahead of each other, product-wise.''
''They are trying not just to reiterate what they've said in the past, but to show that they are still strong and committed,'' he said.
Erbschloe said the growing popularity of Linux, a well-regarded version of the Unix operating system used by businesses to run computer networks and Internet sites, is also shaking up Microsoft.
Intel has endorsed Linux, buying a multimillion-dollar stake in VA Research, a Mountain View, Calif.-based maker of business computers that run on Linux, earlier this year.
Intel's workstation products division general manager, Anand Chandrasekher, said Tuesday that Intel's continued commitment to Microsoft doesn't undermine Intel's relationship with Linux users.
''Our task is to enable all operating systems to work best on Intel architecture,'' he said.
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