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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (31794)	6/9/2000 10:11:00 AM
From: IQBAL LATIF	Read Replies (2) \| Respond to of 50167

<<Gartner on Microsoft Ruling: the Split May Benefit "Next Generation Microsoft"; Immediate Behavioral Remedies Are The Biggest Threat to Microsoft STAMFORD, Conn., Jun 8, 2000 (BUSINESS WIRE) -- Now that there is a final ruling, there are critical issues for Microsoft and the DOJ to monitor over the next few months, according to Gartner Group, Inc. (NYSE: IT and ITB). The immediate concerns to Microsoft are the behavioral remedies that will be enacted in 90 days unless stayed during the appeals process. It is not at all clear that Microsoft will be able to stay the remedies and, therefore, they may be forced to change several key behaviors. Exclusivity and market share: One behavioral remedy would ban exclusive deals. Microsoft currently has $25 billion in equity investments and partnerships - many of which are exclusive. The exclusivity of these arrangements helps Microsoft expand market share. "Microsofts most important method of gaining market share in the new market of the Internet and diverse access devices has been intelligent equity investments and partnerships," said Tom Bittman, Gartners Vice President and Research Director of Server Technologies. New functionality: Another requires that if Microsoft chooses to bundle any of its middleware with the operating system, it must provide uninstall mechanisms to OEMs and users, and must lower the price accordingly to OEMs. Watch the Applications Company: It is likely that if Microsoft is forced to split, they will take advantage of that to ensure that the "applications" company is the true heir to Microsofts strategy with "Next Generation Windows Services." The final ruling places severe business and behavioral restrictions on the new "operating systems" company, but almost no restrictions on the "applications" company. In fact, it is possible that more middleware that is currently embedded in Windows will be unbundled and shifted to the "applications" company. While the two companies would be relatively equal in revenue, the "applications" company would have dramatically more market value and growth potential based on marketplace trends. In many ways, Microsofts divestiture of "operating systems" would increase Microsofts potential to be a leader in the new world of the Internet and software as a service. "The case to date has been very focused on divestiture of Microsofts platforms," said David Smith, Gartners Vice President and Research Area Director. "Ironically, this may place a Microsoft "applications" company in a position that will be better prepared to innovate and acquire technologies - especially if that company has no behavioral restrictions and is not limited to Windows technologies. The new "applications" company has the potential to become another Microsoft." About Gartner Gartner provides unrivaled thought leadership for more than 10,000 organizations, helping clients to achieve their business objectives through the intelligent and efficient use of technology. Additionally, Gartner helps technology companies identify and maximize technology market opportunities. Gartners technology content and strong brand reach IT professionals globally through Gartner Research, its research and advisory unit, Gartner Services, its custom consulting unit; Gartner Events, including Gartners renowned Symposia; and, at www.gartner.com. Gartner subsidiary TechRepublic, Inc. (www.techrepublic.com) is the leading online destination developed exclusively for IT professionals by IT professionals. Gartner, founded in 1979 and headquartered in Stamford, Connecticut, achieved fiscal 1999 revenues of $734 million. Gartners 3,600 associates, including 1,200 research analysts and consultants, are in more than 80 locations worldwide. For more information about Gartners industry-leading products and services, please visit us on the Web at www.gartner.com. >