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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: mact who wrote (28288)	8/5/1999 12:19:00 AM
From: puborectalis	Respond to of 41369

Instant sensation By Hiawatha Bray, Globe Staff, 07/29/99 I'd love to read the instant messages that must be flying back and forth between Microsoft Corp. CEO Bill Gates and America Online Inc. chief Steve Case: Gates: Hi. Case: Hi, Bill. Didn't know you used our AIM instant messaging software. Gates: I don't. This is a new messaging program our guys dreamed up. Hope you like it. Case: Cute, Bill. But our messaging program doesn't work with anybody else's. Gates: Yeah ... we've been waiting for you to fix that bug in your program. But you took too long. So a couple of our Windows 2000 guys decided to fix it during their coffee break. I think they did OK. You agree? Case: You saying your program connects to our messaging system? You can't do that! Gates: Why not? This way, AIM users will be able to send messages to lots more people. And I'm looking forward to having friendly chats like this with all your millions of customers. It'll be nice. Case: Nice? Nice? Those are OUR customers! Go away. Gates: Make me. And so on. To a tech journalist lonely for the days of Web browser wars, the AOL-Microsoft instant messaging spat is as welcome as a summer shower. Not only is it a dramatic way for Microsoft to establish itself in a booming new segment of the Internet business, it's also a rare opportunity for Microsoft to position itself as the scrappy, gutsy outsider challenging a mighty corporate oligarch. After months of public humiliation at its federal antitrust trial, Microsoft has come up with a way to boost its business and look like a hero at the same time. I almost feel sorry for AOL. Here's a company that saw the value of instant messaging before almost anybody else. Years ago, it began with the ''buddy list'' feature that let AOL subscribers shoot messages to each other. Then came the AIM network, which can be used by anyone on the Internet, even if they don't subscribe to AOL. To top it off, AOL last year purchased the Israeli firm ICQ, maker of another popular instant messaging system. There was just one little problem. For all its connections to the Internet, AOL is still a closed computer network that uses its own software standards rather than the international standards used on the Net. The company's instant messaging services do the same, with the result that AOL's 35 million AIM users and their 35 million ICQ users can't even message each other, much less send messages to anybody else outside those networks. In fairness to AOL, there isn't an international standard for universal instant messaging yet. The Internet Engineering Task Force should have one in a year or so. But even then, AOL has little incentive to embrace it. As long as those 70 million people are locked into AOL-owned networks, then AOL gets a free run at their hearts, minds, and credit cards. Microsoft understands a basic rule of business street-fighting - never give your rival a profit sanctuary. Attack on all fronts. And attack they have, in a most ironic way. Microsoft has basically hacked the AIM server software, writing a program that tricks it into granting access to users of the Microsoft messenger program. A furious AOL has responded by closing loopholes in the software. But Microsoft engineers keep posting new versions of their software that defeat the AOL blockade. It's probably the most fun the Microsofties have had in years, and it's a pleasure to watch. AOL is suing for peace, saying that it's willing to work with Microsoft to make their messenger products compatible. But so far, Microsoft has responded with a sneer. Good for them. By its action, Microsoft is forcing the issue not just on AOL, but on up-and-coming makers of instant messaging products, like Tribal Voice and Odigo. By taking a hard line, Microsoft is firing off flash traffic to the whole instant messaging industry: Open up your networks. Or we might just do it for you. You can send electronic mail to Hiawatha Bray at bray@globe.com. This story ran on page D1 of the Boston Globe on 07/29/99. © Copyright 1999 Globe Newspaper Company.