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To: Benny Baga who wrote (3842)	5/4/1998 3:40:00 PM
From: Benny Baga	Respond to of 8545

Microsoft's online strategy has late 'Start' By Steven Vonder Haar The commercial launch of Microsoft Corp.'s highly anticipated Start navigation hub will happen at least three months later than originally expected. Microsoft (MSFT) now is targeting the rollout near year's end, according to a company spokeswoman who asked not to be identified. Microsoft, in briefings with industry analysts early this year, had said it was planning to introduce Start in late summer or early fall 1998. The delay may prove costly for Microsoft in the fast-moving Web portal business, industry analysts said. The additional time gives competitors, such as Excite Inc., Lycos Inc. and Yahoo! Inc., more opportunity to prepare for Microsoft's entry while giving established media players, such as The Walt Disney Co., more leeway in formulating their strategies for building Web gateways. "The issue to keep in mind here is market momentum," said Mark Mooradian, group director at research firm Jupiter Communications LLC. "Things are happening quickly, and Microsoft definitely should be feeling a sense of urgency." Start is viewed as a linchpin in the software giant's efforts to overhaul its online content strategy. The site, which will serve as the default gateway for Microsoft's Internet Explorer browser and the front door to its MSN Premier Internet access service, is expected to offer search services, personalized listings of Web content and services relevant to the user. Microsoft's delay comes at a point when other portal aspirants are accelerating efforts to refine their Web offerings. Excite, for instance, last month integrated its personalized MyExcite service on its main home page. Lycos, likewise, last week expanded the scope of its search services to include a broader range of directory-style listings. Meanwhile, Walt Disney Chairman Michael Eisner last week in published interviews hinted that the media company is planning aggressive expansion into the portal business. Online leader America Online Inc. also is planning an overhaul of its AOL.com portal site slated for release in the summer. "Given the changes going on, you would expect Microsoft to be rushing Start out instead of delaying it," said Brian Oakes, an analyst at Lehman Brothers Holdings Inc. The Microsoft spokeswoman declined to say why the company is delaying Start's rollout. Requests for interviews with Start developers were declined. With Start's focus on serving up personalized content offerings, Microsoft is attempting to create a system driven by complex database applications. Difficulties in developing those database systems may be slowing Microsoft's efforts, analysts said.