Redmond, Washington, Oct. 27 (Bloomberg) -- Microsoft Corp. said its Windows 2000 software will go on sale in retail stores Feb. 17, setting a formal release date for a much-delayed upgrade to its business operating system.
The world's largest software maker said Windows 2000 will go into production by Dec. 31 and take about six weeks to get into stores. Microsoft officials said it will go on sale to personal- computer makers almost immediately after manufacturing begins, and to big corporate clients within a few weeks after that. Large companies and business-PC makers are the product's main markets.
Windows 2000 is Microsoft's most ambitious foray to date into corporate networking, where it will compete against Sun Microsystems Inc. and Red Hat Inc., which sells Linux systems. ``Microsoft always said it would introduce to manufacturing by the end of the year,' said William Epifanio, a J.P. Morgan Securities analyst who rates the stock a ``buy.' ``It never said it would be available to customers by the end of this year.'
Windows 2000, with more than 30 million new lines of computer code, originally was intended to be one system for both companies and consumers, replacing Windows NT and Windows 98. Earlier this year, Microsoft said the consumer version would be delayed and Windows 98 would be upgraded instead.
Windows 2000, as the latest version of the NT operating system, will be available in a workstation version and three server versions offering escalating amounts of computing power. The most powerful server version won't be shipped until as much as four months after the first two, Microsoft said two weeks ago. ``This is a monster, it's Microsoft's biggest task to date,' said Carl Howe, an analyst at Forrester Research in Cambridge, Massachusetts. ``The question is whether they can shift with adequate reliability as everyone expects.'
Earnings Impact
Windows 2000 will start generating significant revenue later next year if it's released without problems that would delay customers from buying the product, analysts said.
Microsoft has said for months that it would release Windows 2000 by the end of this year, and by sending it to its manufacturing plants by year-end, it can technically meet that deadline, analysts said.
Microsoft already has released several test versions of Windows 2000. The latest was shipped to more than 650,000 software developers, analysts and customers so they could search for problems that can be corrected before it's publicly released. ``This is a way they can save face,' Howe said.
Microsoft has said Windows 2000 won't have much effect on its earnings for at least the first half of 2000. The new operating system and applications being developed for it could significantly boost earnings later in the year, the company said.
The pricing for Windows 2000 hasn't been announced.
Microsoft shares fell 1 1/2 to 90 7/8. They've climbed 31 percent this year.
¸1999 Bloomberg L.P.
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