Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Wind River going up, up, up! -- Ignore unavailable to you. Want to Upgrade?

To: James Connolly who wrote (3666)	10/26/1998 9:58:00 AM
From: IA	Read Replies (1) \| Respond to of 10309

From Monday's Wall Street Journal By Kimberley A. Strassel And David Bank NEW YORK (Dow Jones)--Microsoft Corp., seeking to extend its Windows franchise into what could prove a hot new market, will unveil an operating system for smart cards, according to people close to the situation. The announcement, to be made Tuesday at Cartes 98, an annual smart-card industry gathering in Paris, will include details of the entirely new operating system that Microsoft has designed to fit on smart cards. This operating system will allow smart cards - credit-card-size devices containing a computer chip - to not only store information, but also perform advanced functions, such as securely identifying users or running small programs. Microsoft's entry into the market could give a major push to the uptake of smart cards in the U.S. So far, more than 80% of the smart-card market - set to top $3.5 billion by 2002 - is centered in Europe. A technology that has been around for decades, European smart cards are used to store information on mobile phones, give access to public transportation systems and facilitate all types of banking. In contrast, analysts think most smart-card growth in the U.S. will be driven by computer-based applications and e-commerce. The new smart-card operating system is part of Microsoft's effort to extend the Windows line into the market for the cheap, compact operating systems needed to run small information appliances. Software for these devices is becoming more important as they get connected to the Internet. In April, Microsoft announced that it will offer a version of its Windows CE operating system for such 'embedded' systems, and the product is already being tested in such places as automated gas pumps or hand-held wireless units used by rental-car agents. The new operating system, which requires less chip power than Windows CE, is an attempt to penetrate the market for even smaller, cheaper devices. The per-unit price for such software is low, but Microsoft is motivated by defensive considerations as well as revenue potential. In particular, the company is trying to stem inroads made by rival systems based on Java technology from Sun Microsystems Inc. Microsoft executives fear that the widespread adoption of Java in non-PC devices could threaten the company's Windows franchise for personal computers. Microsoft will aim to make its operating system cheaper than Java-based systems. News that Microsoft will enter the market has been eagerly awaited by the smart-card industry. Many companies, such as French market leaders Schlumberger Ltd. and Gemplus SA, see Microsoft's entry as a catalyst for the widespread adoption of smart-card technology in PCs and electronic commerce. Although many computer manufacturers, including International Business Machines Corp., Hewlett-Packard Co. and Compaq Computer Corp. have announced plans to produce PCs with devices to read smart cards, Microsoft's announcement seems to indicate that the company is committed to integrating smart cards into the software side of PCs. The debut of the Microsoft technology, currently labeled 'Windows-based smart cards' or 'Windows cards,' will put Microsoft in competition with a number of other companies that make the 'brains' that allow card chips to perform advanced functions. In addition to Java-based cards, companies such as Mondex International Inc. have spent years developing Multos, an open-standard operating system for smart cards. Companies such as IBM and Cie. des Machines Bull, also have their own operating systems.