To: QwikSand who wrote (14104 ) 1/30/1999 9:34:00 PM From: Rusty Johnson Respond to of 64865
What's Weighing Down Microsoft? Fortune The delay in Windows 2000 means competitors are grabbing accounts--and Microsoft's dominance is slipping.pathfinder.com Part of the problem is that NT 5 is a moving target that has kept expanding to address competitive threats. When Sun, Oracle, and others were noisily touting network computers and thin-client computing, Microsoft fought back in part by licensing terminal server software from Citrix Systems that would make NT work as a powerful server, dishing out applications to devices as cheap and powerless as dumb terminals. The company says these modifications are necessary to give the customers the features they want. But consumers say they are tired of needing computers powerful enough to run increasingly bloated versions of software. Microsoft won't say how much power, memory, and disk space Windows 2000 will need, but you can take a cue from the exploding code. Meanwhile, starting in mid-1999 many companies will tuck into a technology lockdown to ensure their computer systems are prepared for the year 2000 crisis. Instead of going ahead with a NetWare-to-NT migration, "companies will upgrade NetWare to fix Y2K bugs rather than switch to something entirely new," says Jamie Lewis, president of the Burton Group, a networking consulting firm in Salt Lake City. Quips John McFarlane, vice president of strategy at Sun: "Would you fly in an airplane with 20 million new parts?" As a result, competitors are gaining momentum. In the absence of functional directory technology from Microsoft, Novell inked an impressive pact with Cisco Systems, Nortel, and Lucent that has the networking giants supporting Novell's directory technology. Oracle and Sun teamed up to create a "database appliance" that runs on Intel servers, bypassing NT. Oracle CEO Larry Ellison says the complexity of NT detracts from advancements in computer performance. "We need an operating system that takes full advantage of the [Intel] hardware," Ellison says. "We don't have time to wait for Windows 3000." The open-source movement poses another threat. Linux has become more popular as an operating-system alternative that can host Web servers and even run business applications. Besides being free, Linux is continually improved by thousands of programmers across the world. Microsoft can't seem to keep up. At this point the company plans a third beta test sometime in the first quarter of 1999. And analysts are advising their clients to await the first "service pack" (or bug fix)--which they expect in 2001--before upgrading. Though trustbusters attack Microsoft, and the ABM (anyone but Microsoft) coalition continues its assault, it seems the greatest threat to the company comes from within. The delay in Microsoft's key product may cost it profits, market share, and dominance. Best regards.