To: Mark Woolfson who wrote (15721 ) 4/24/1999 9:20:00 PM From: Rusty Johnson Respond to of 64865
Microsoft lags in enterprise penetration By Bob Trott InfoWorld Electric osted at 2:46 PM PT, Apr 23, 1999 Despite its numerous delays, Microsoft has already pointed to next week's expected release of Beta 3 of Windows 2000 as a milestone in its efforts to push Windows NT technology further up the enterprise chain. However, a recent report by International Data Corp. (IDC) researchers indicates that NT is not infiltrating large corporations in exactly the same manner that the software giant claimed in its quarterly financial report last week. The study of hundreds of IT shops around the world found that NT is still being used mostly as a departmental infrastructure server for file/print, messaging, communications, and similar tasks, rather than -- as Microsoft boasts -- as a major enterprise server running mission-critical applications. "People who have Unix doing tasks for them are more likely to buy more Unix to continue to do those tasks," said Dan Kusnetzky, program director for IDC's operating environments and serverware research programs. "When people are doing something totally new, that's when they consider NT and select NT if what they need fits in with what NT can do," Kusnetzky said. The IDC findings do not jibe with the message Microsoft has been giving large corporations: that NT and the upcoming Windows 2000 are scalable, reliable, secure platforms. "Microsoft is very good at momentum marketing. It can turn reports of strong growth in revenues, software license shipments, or clients being supported into a message that Windows NT is becoming the de facto standard," Kusnetzky said. But NT still has not overtaken Novell's NetWare, which is still more widely used for file/print services, directory services, and communications services, according to Kusnetzky. Microsoft officials disputed the IDC findings. "[Customers] want to do more than just file and print" with NT, said product manager Tanya Van Dam. "In the small and [midsize business] space, we're seeing people go to NT 4.0 in large counts, and we're seeing deployment on 4.0 by NetWare customers, who are saying they'll wait and see, with Beta 3 (of Windows 2000) around the corner," Van Dam said. Microsoft hopes NT 4.0 will continue to sell until Windows 2000's release, which the company has pegged for October, but which could easily slip into 2000. One analyst said Microsoft should spend as much time as it needs on the pivotal product in order to capture the minds of IT. "In the fourth quarter of 1999 most IT departments are going to have things on their mind other than Windows 2000," said Michael Gartenberg, vice president and research director of the Gartner Group, in Stamford, Conn. Gartenberg said this test cycle should last at least one year to ensure a sturdy product. Bob Trott is InfoWorld's Seattle bureau chief. infoworld.com