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Microsoft targets telecom

June 9, 1999
Web posted at: 2:57 p.m. EDT (1857 GMT)

by Bob Wallace

ATLANTA (IDG) -- Although Microsoft has long been considered an office applications vendor, President Steve Ballmer made it crystal clear Tuesday that his company plans to be a major supplier to the burgeoning telecommunications industry.

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"The future of our business and telecommunications are increasingly linked, and our interest in the telecom field is broad," Ballmer said in his keynote at the Supercomm '99 show here, which attracted 700 telecommunications service providers and equipment makers from around the world.

Ballmer emphasized that Microsoft wasn't going into the telecommunications business itself. Instead, the key to Microsoft's strategy is to partner with other hardware and software vendors, whose products -- when combined with Windows NT -- can provide a platform to deliver new services. Those services initially will be broadband offerings such as Digital Subscriber Line (DSL) and cable modem, for both businesses and consumers.

The software giant is also continuing to work at warp speed to adapt its applications so they can be hosted in service provider networks. This gives corporate users the option of outsourcing applications such as Microsoft's Exchange e-mail package.

As tangible evidence of its work with partners to deliver products to service providers, Microsoft this morning unveiled a robust all-in-one communications system that Sprint Corp. will package with its communications services. The NT-server-based system supports voice, data, Internet access and unified (voice-mail and e-mail) messaging. It's available now, Ballmer said, with third-party-developed vertical-market applications in areas such as real estate and medical offices. Pricing wasn't announced.

The system, built around servers from Dell Computer Corp., can be accessed remotely through wireline and wireless connections using a standard browser. It's targeted at companies with 5 to 200 employees, he said. Small business is "the richest segment of the market and is underserved with communications technologies."

Microsoft also is working hard to prepare its core products for the heightened performance demands of service providers. To that end, Microsoft set up a special group three months ago to prepare NT for this new role, Ballmer said, "but we're far from done and have a lot of work to do in increasing the reliability, fault tolerance and high availability of NT."

On the high-speed access front, Ballmer claimed Microsoft has no bias when it comes to DSL vs. cable modems. "We want both businesses to grow more quickly." The new Office 2000 package announced yesterday has been optimized for use with DSL services, he said. Windows 98 and Windows 2000 clients have also been optimized for DSL connections.

Office 2000: What Microsoft's hiding inside the box
June 7, 1999
Analysis: Wintel acquisitions on the upswing
June 3, 1999
Telecom chiefs on same wavelength
March 30, 1999
Companies should beware binding telco contracts
March 13, 1999

AT&T and AOL: Separated at birth?
(The Industry Standard)
Gates: Microsoft pushes telecom for software opportunities
(InfoWorld Electric)
It's mating time for industry elephants
(PC World Online)
Microsoft buys $5 billion AT&T stake
(Windows TechEdge)
Microsoft's telecom push calls for NT
(InfoWorld Electric)
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