Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Development
    • Development

    Microsofts New Challenge

    Written by

    Peter Galli
    Published March 12, 2001
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      Now that Office XP has been released to manufacturing, the challenges are just beginning for Microsoft Corp. and its flagship desktop productivity suite.

      In addition to persuading Office users to upgrade—no small task, considering that about 70 percent of the 120 million installed Office users still run either Office 97 or Office 95—the Office team must come to terms with a potential threat from within: a project code-named Netdocs.

      Netdocs, part of Microsofts .Net initiative, is a single, integrated application with e-mail, instant messaging, personal information management, document authoring and digital- media management. The technology could form the basis for the future of Office, depending on how it develops and how Office XP fares.

      Microsoft officials in Redmond, Wash., refer to Netdocs as “a set of technologies” rather than a product, but sources close to the company said Microsoft has a sizable team of engineers working on turning Netdocs into a stand-alone product—albeit in a hosted environment. The current alpha version could well develop into three versions directed at the consumer, small and midsize businesses, and enterprise markets, sources said.

      But before Netdocs becomes a reality, Microsofts most immediate challenge is to get Office XP to market as quickly as possible, given the slowing economy.

      Microsoft shipped XP to manufacturing a scant six months after the first beta was announced. Microsoft also bypassed the tradition of issuing multiple release candidates of the product before sending final code to manufacturers.

      But Microsoft officials denied the testing process was rushed, saying it was one of the most extensive beta programs an Office product has ever had. “Apart from the 10,000 external Beta 2 testers, we have had some 20,000 internal users running the code for the past six weeks. There has been absolutely no rush to market,” said Tom Bailey, Office XP lead product manager.

      But while Office contributed more than 50 percent of Microsofts income in the second fiscal quarter, sales have been slipping, with revenue falling 2 percent compared with the same year-ago period, officials said. Compounding the situation is that analysts expect corporate technology spending growth to slip to single-digit figures this year.

      “Our job is to show our customers whats compelling with the new product and what the return on that investment is,” said Office Senior Vice President Steven Sinofsky. “We know how important it is to get end users excited about the product, so we will show it off in a way that makes much more sense for all users.”

      Microsoft is going to have an uphill battle persuading users who have already moved to Office 2000 to pay for yet another upgrade. Pricing for Office XP is not available, but new, single-user versions of Office 2000 cost $799. A Web developer in Houston who requested anonymity said he has not yet seen anything to persuade him to upgrade. “Office 2000 is very robust and stable, and I plan to stick with it for quite some time,” he said.

      The companys largest customers are likely to get the product before the end of next month, and it should reach OEM partners and the retail channel by June, Bailey said. Microsoft also needs to persuade corporate users to upgrade sooner rather than later, since corporate IT traditionally holds off on desktop upgrades until a new PC or operating system upgrade is in hand.

      Lockheed Martin Corp., with hundreds of servers and some 165,000 desktops, is one such company.

      “We are looking forward to the functionality and elements that Microsofts .Net architecture will bring to its products,” said Massimo Villinger, chief technology officer for Lockheed Martin Enterprise Information Systems, in Orlando, Fla., adding that the company tends to replace its PCs every three years, at which time users get the latest operating system and suites preinstalled. “How compelling the new products are and how they fit into .Net will determine our approach to them.”

      Microsofts Sinofsky downplayed the Netdocs threat. “Were not standing still, and we showed off some [Netdocs] technology at Forum 2000, which is the direction in which were heading. Were investing in the ways that individuals create documents and manage information and e-mail and are trying to find new ways of doing that,” he said.

      Whether Netdocs finds its way into future versions of Office or emerges as a competing stand-alone product, the strategy is not unusual for Microsoft, which for years has had a Windows 9x team and a Windows NT team working separately.

      Sources close to Microsoft say Netdocs will most likely be available only as a hosted service over the Internet, rather than as a shrink-wrapped application or software preloaded on PCs. This fits neatly into the companys .Net road map, which involves the delivery of applications and pieces of applications as services that can be rented over the Internet. Microsoft intends to offer a subscription version of Office XP; pricing for this has not been set.

      Bailey said the current plan is that Netdocs will become available through a variety of Microsoft product releases over the next few years. “Netdocs … is likely to be a consumer-focused service that is unlikely to overlap with what Office does. It should be a complementary … technology,” he said.

      Peter Galli
      Peter Galli
      Peter Galli has been a technology reporter for 12 years at leading publications in South Africa, the UK and the US. He has comprehensively covered Microsoft and its Windows and .Net platforms, as well as the many legal challenges it has faced. He has also focused on Sun Microsystems and its Solaris operating environment, Java and Unix offerings. He covers developments in the open source community, particularly around the Linux kernel and the effects it will have on the enterprise. He has written extensively about new products for the Linux and Unix platforms, the development of open standards and critically looked at the potential Linux has to offer an alternative operating system and platform to Windows, .Net and Unix-based solutions like Solaris.

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Artificial Intelligence

      9 Best AI 3D Generators You Need...

      Sam Rinko - June 25, 2024 0
      AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
      Read more
      Cloud

      RingCentral Expands Its Collaboration Platform

      Zeus Kerravala - November 22, 2023 0
      RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
      Read more
      Artificial Intelligence

      8 Best AI Data Analytics Software &...

      Aminu Abdullahi - January 18, 2024 0
      Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
      Read more
      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Video

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2024 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×