Special Features:
MS WINDOWS SERVER 2003 RELEASE
FACES DIFFICULT ROAD
Helen Jung reported in a recent AP release that, after name changes and
development delays, Microsoft Corp's newest operating system for servers
finally hit the market.
Analysts don't consider Windows Server 2003 a major upgrade, but its launch
is
strategically important for Microsoft as the software giant seeks to stave off
open-source competitors and gain adherents for its Internet-centric plans.
Microsoft is banking on the new software -- for the computers that do
networks' heavy lifting, database crunching and traffic management -- to push
a host of add-on products that are collectively marketed under a new "Windows
Server System" name.
These products, designed to integrate closely with its Office suite,
include:
a new version of SharePoint Portal Server, which encourages collaboration
among teams; its new Real-Time Communications Server software to allow people
to instantly message others on their team; and its SQL database management
server.
Microsoft is also hoping to attract more converts to its highly touted yet
often vaguely understood ".NET" initiative, Microsoft's approach to "Web
services." It's a concept in which computers and devices can automatically
communicate with one another over the Internet regardless of language or
system.
Server software, though not glitzy, is selling.
For its most recent quarter, Microsoft's Server Platforms group saw a 21
percent increase in revenues over the previous year. Overall, the group, one
of only three profitable business units for Microsoft, contributed about 23
percent of the company's revenue for the most recent quarter.
Still, selling an upgrade in the current economy is going to be a
challenge,
analysts said.
"(Information technology) departments are reluctant to spend money today
because their budgets are under a lot of pressure and scrutiny," said Michael
Cherry, an analyst with Kirkland-based Directions on Microsoft.
Some companies running Microsoft's most recent server operating system
release
- Windows Server 2000 -- won't see an "earthshattering" reason to change,
said
Ted Schadler with Forrester Research.
But especially for those running the older, NT 4.0 version, companies will
see
improvements in the stability and security of the platform, Cherry said. In
addition, the new version is better able to handle large-scale applications
and database needs, reducing how many computer servers companies may need, he
said.
And unlike its dominance in desktop operating systems, Microsoft has plenty
of
competition in the server market -- particularly from open-source Linux
software offered by such companies as Red Hat and IBM.
"The onus is upon Microsoft to give a compelling reason to upgrade," said
Vikas Deolaliker, a product manager at Sun Microsystems, another Microsoft
competitor. "I think that the key point ... is for the first time perhaps in
Microsoft's history, they are coming out with something and there is an
alternative, which is quite threatening."
But Microsoft has been pitching a theme that its Windows Server System
lineup
- combined together -- will save companies money in the long run.
The software, which was developed for better security, reliability and
improved performance, can cut costs for businesses and free up network
administrators to focus on more significant work, said Bill Veghte, corporate
vice president of the Windows Server Division at Microsoft. They also won't
have to spend the time and money of going to multiple vendors and ensuring
those products work together smoothly, making Microsoft's products ultimately
cheaper and easier, he said.
"This tough economic climate means (companies) are taking a very hard line
and
hard look at costs ... it's the operational costs that's the core issue," said
Veghte. "That changes the game competitively for Linux."
That argument may gain traction as Microsoft continues to tout the ".NET
architecture" -- or the technological plumbing -- that it is building into all
its products, Schadler said.
"(It's) a new competitive factor that Microsoft hopes to exploit," he
said.
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