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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: ed who wrote (18176)	3/17/1999 1:38:00 AM
From: Ian Davidson	Read Replies (1) \| Respond to of 74651

From tomorrow's WSJ March 17, 1999 Microsoft Releases New Browser, Announces Deal With RealNetworks By DAVID BANK Staff Reporter of THE WALL STREET JOURNAL Microsoft Corp. is releasing a new version of its Web-browsing software Thursday, accompanied by a series of deals that include renewed collaboration with bitter rival RealNetworks Inc. Microsoft plans to market Internet Explorer 5.0 as "the browser that works faster to save users' time." The new software includes a junk e-mail filter, improved video-conferencing technology and a feature that identifies other Web pages related to the subject a user is reading about. But the new browser is generating little of the excitement and controversy that accompanied earlier rounds in the "browser wars," an indication of the changing competitive landscape in the software industry. Microsoft's integration of its browser into its Windows operating system helped trigger the current antitrust suit in Washington, D.C. Netscape Communications Corp., Microsoft's chief rival in the browser market, no longer considers browsers to be its principal business, and has published its underlying programming code to allow outside developers to make their own improvements. Netscape is being acquired by America Online Inc. Microsoft's deal with RealNetworks, the leading supplier of "streaming media" technology, will enable Internet Explorer users to connect to RealNetworks' newly enhanced directory of sites offering audio and video clips, dubbed RealGuide. While limited in scope, the deal is significant because Microsoft's Media Player product is challenging RealNetworks' lead in the market for such media players. In November, Microsoft formally ended a technology-sharing partnership with RealNetworks and said it would sell its 10% stake in the company. "It's indicative of the ongoing push-me, pull-you relationship with Real," a Microsoft spokeswoman said of the new agreement. Executives at RealNetworks declined to comment. Microsoft is also expected to announce an agreement with Alexa Internet, a San Francisco start-up, to include a feature that identifies Web links related to the subject on the screen and even restores lost links from its extensive archive of the Web. Alexa also has a relationship with Netscape. Microsoft has also been working with Bloomberg LP's Bloomberg Financial Markets, New York Times Co. and its own Microsoft Network to develop specialized "toolbars" of services customized for the new browser. The browser will also include Microsoft Agent technology, animated characters that speak to users using text-to-speech software. Microsoft also made improvements to its Wallet software to make online shopping more convenient. Wallet saves frequently used data such as credit card numbers. "It's going to be a little faster and a little cleaner," said David Kerley, an analyst with Jupiter Communications in New York. "But from the consumer perspective, it's not a big event." Much of the damage to Netscape's market position has already been done. In September, International Data Corp. estimated that Netscape's share in browsers in the first half of 1998 at 42%, down from 51% at the end of 1997. Microsoft's share rose to 28% from 23% during the same period; coupled with browsers used by AOL, which are based on Internet Explorer and accounted for 16% of the market, Microsoft technology represented 44% of all browsers, IDC said. In corporations, however, Netscape's share remains as high as 60%, according to some studies. In response to Microsoft's onslaught, Netscape stopped charging for its browser and adopted an "open source" model for its underlying code. Netscape has revamped its future browser strategy around technology called "Gecko," which can be more easily incorporated into other software programs. "We view IE 5.0 as a minor incremental release," said Bob Lisbonne, Netscape's senior vice president.