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

To: lkj who wrote (5141)	5/7/1999 5:11:00 AM
From: Codfish	Read Replies (2) \| Respond to of 10309

It's unlikely that MSFT is dropping $5B just to get into a box on your TV. It has to establish credibility for CE. Don't fool yourselves into thinking that Mr.G will be satisfied with the set-top box market. He is looking for interconnectivity through the internet and intranets. Industrial Automation will be next in the queue. Here are a couple of perspectives on the MSFT/ATT deal from News.Com. The first makes it clear that WinCE is not the greatest software in the world - far from it. The second says that the ATT deal will lend credibility. Windows CE faces technical hurdles According to some analysts, Windows CE is weaker technically than other set-top box operating systems, and is better suited to handheld devices. But by virtue of the AT&T deal today, Windows CE gains a huge foothold in the set-top market. Companies have been reluctant to adopt Windows CE because it lacks the ability to process commands under the strict definition of "real time," although Microsoft downplays those concerns. Also, because it hasn't been widely deployed as a set-top operating system, there is concern that the software isn't reliable enough to run for hours on end without having to restart the device. Further, Microsoft's desktop operating systems are often derided as unreliable, and there is the perception that some of those issues could crop up in the set-top arena. ……."It could be larger than the PC wave because it encompasses homes that already have PCs, [as well as] that segment that just isn't a PC type of household. It's a huge opportunity, and Microsoft has admittedly struggled to date to penetrate the cable market," Bunzel said. …….. ……."I don't think anybody would say it guarantees that Windows CE will be the de facto standard. But it gives Microsoft a tremendous foothold in the door at AT&T, and moves them to the front of the line," said Bunzel. …….. news.com ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Microsoft: Money talks Redmond's latest gambit--apparently a quid pro quo deal to invest $5 billion in AT&T in return for expanded use of a stripped-down version of its Windows software--demonstrates the software giant's increasingly prevalent strategy for making sure it is not left out of emerging technology opportunities. Armed with plenty of cash and a $1 billion investment in Comcast--the original suitor for MediaOne--Redmond garnered a better deal for its software business and closer ties with a rapidly transforming telecommunications powerhouse. The AT&T deal illustrates a time-tested Microsoft game plan: Use market clout and financial muscle to gain entree in new areas, even though it may have a weaker or even inferior product. …....The company's Windows CE operating system--which AT&T plans to use in up to 10 million cable television set-top boxes--has found little traction in the market thus far and is far from optimized for the needs of the cable industry, according to some…….. ……"For Microsoft, having $20 billion in the bank certainly helps. And, in the AT&T deal, $5 billion helps to erase a lot of reservations [about Windows CE's capabilities]."…….. …….In the end, industry observers believe Microsoft may be able to chalk up another win, safe in the knowledge its software will play a large role in what is expected to be a booming market for services delivered over broadband pipes……. news.com ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Just one guy's opinion..... Codfish