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To: jim kelley who wrote (82409)11/25/1998 8:42:00 PM
From: Mohan Marette  Respond to of 176388
 
It is wwww.The World Wide Web War.com ( Microsoft Vs AOL).

Jim:

Here is an interesting take on the implications of MSFT vs AOL/SUNW alliance from IDC.
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World Wide Web War : AOL v Microsoft

IDC Opinion

AOL's dramatic acquisition of Netscape is a significant turning point in the development of the World Wide Web and E-commerce. The seemingly insurmountable presence of Microsoft will now face its first real test, with AOL set to mount a direct challenge to Microsoft's Internet ambitions. By teaming up with Sun to pin its colours firmly to the Java mast, AOL has made its intentions clear. Microsoft could now face the biggest fight in its history, in the IT market's most important area.

AOL versus Microsoft?

AOL has effectively declared war on Microsoft, setting up a fascinating and potentially momentous "virtual battle" for control of the World Wide Web. Microsoft sees the Internet as central to its strategic direction, and so important that it was prepared to surrender much of the advanced functionality of its Windows 98 O/S free of charge as part of its browser strategy. There can be no more positive signal - Microsoft sees the Web as vastly more important than its desktop O/S business. The Web is the ship which no-one can afford to miss, and that applies even to the vendor of the world's dominant desktop operating system.

Meanwhile, AOL has been carrying out an aggressive strategy of its own. While Microsoft suffers the slings and arrows of outrageous envy, AOL has been happy to distribute free software in a blanket marketing campaign aimed at securing as many Web subscribers as possible. The acquisition of CompuServe was a clear indication that AOL was determined to dominate the market. Some users complained that the dominance of AOL was eating into the diversity, which gave the Web its character, but subscriptions continued to rise.

Connecting buyers and sellers: AOL already does this very successfully - that's its business. Netscape was trying to do that with Netcenter, but it couldn't operate on all three fronts simultaneously – browser, server, portal. Now AOL has two of the leading on-ramps on the Internet, those on-ramps being the primary channel to connect buyers to sellers. Sellers and advertisers (sometimes the same) will see AOL as the no. 1 channel, hence, strong revenue stream for AOL has now become apparent.

The Java issue is also important. Netscape has always been a Java supporter and has had close ties with Sun. By selling the NS server business/technology to Sun, AOL and Sun will work closely on developing applications including e-commerce applications for the AOL platform & customer base. This will provide a spur to the consumer commerce market overall (given AOL's large subscriber base).

The bulletin, World Wide Web War, is available to purchase from your local IDC office for $500....

For further information please contact :

Mathew Heath
Marketing Communications
+44 181 987 7107 (Phone)
+44 181 747 3439 (Fax)
mheath@idc.com

Philip Fersht
Research Manager - European IT Markets
+44 181 987 7205 (Phone)
+44 181 995 1764 (Fax)
pfersht@idc.com