How the EC's ruling will affect Longhorn
Published: 24 Mar 2004 14:15 GMT
Longhorn is clearly the linchpin of Microsoft's integration strategy. "In addition to the Longhorn client, there will be a Longhorn version of Office, Longhorn server enhancements, Longhorn development tools and a Longhorn version of MSN," Ballmer wrote.
Still in early stages of development, Longhorn is expected to debut circa 2006, with these key technologies integrated into the operating system:
Search: One of Longhorn's most heavily touted features, in development for years, is its ability to help people find and retrieve information more quickly. The software underlying that feature, code-named WinFS, will allow customers to search the Web, e-mail and desktop applications such as Microsoft Word. More importantly, Microsoft is investing more than $500m in building an online search service that could be easily link to Longhorn's desktop search technology. Such a one-two punch could allow the software giant to capitalize on the dominance of Windows, challenging Google and Yahoo.
Storage: Because WinFS includes at least some technology borrowed from Microsoft's SQL Server database, analysts said the move could be interpreted as a bundling of database software with Windows. Given the EU decision, that could be enough for competitors to claim that the move is anticompetitive.
Audio and video: Microsoft is working on technology that goes beyond simply playing music and videos. New software that Microsoft has already demonstrated will make it easier to store, catalog and retrieve audio and video clips through a more flexible, 3D application that builds on Longhorn's storage capability. Combined with Media Player -- either packaged with Longhorn or offered separately -- the software could give Microsoft a decisive edge over RealNetworks, Apple and other competitors.
Online music: In addition to competing with rivals over media player software, Microsoft has already announced plans to launch an online music store in the second half of this year. That service could at some point be bundled with Windows. Microsoft has not commented on its plans.
Application development: The server version of Longhorn will go beyond today's Windows Server 2003 software to include a full application server -- including transaction management, better integration support and a new release of Microsoft's .Net architecture -- built into the operating system. That strategy targets rivals that make stand-alone application servers and integration software, such as IBM, Sun Microsystems and BEA Systems.
Speech recognition: Microsoft plans to embed speech recognition software into Longhorn. The software will let people vocally control some features of Windows, such as navigating menus and opening documents. Some smaller companies offer speech recognition software for Windows at present.
Security: While most customers will welcome additional security tools in Windows, Microsoft rivals likely will not. Longhorn will introduce Microsoft's Next Generation Secure Computing Base, formerly known as Palladium. The software, among other features, will automatically monitor system and network security threats and take evasive action. That action could duplicate some of the functions contained in antivirus software from Symantec and other security technology companies.
Mobile: Microsoft has already begun offering new software to link the company's MapPoint mapping software to cellular phone networks, in order to provide location-based services. Longhorn will accelerate that plan by improving ties to mobile devices through new software, code-named Indigo, that's being built into the new operating system.
Messaging: Longhorn builds on Microsoft's thrust into the real-time communications market, which it kicked off last year with a product called Office Real Time Communications Server 2003. Indigo will include real-time messaging services that could give Microsoft an advantage over IBM, Sun and other companies that make corporate instant-messaging software.
Before the ruling, Rosoff said the key for Microsoft will be in the precise wording of the EU's decision. If the ruling is fairly narrow, restricting Microsoft's bundling options in one or two specific areas, he said, it won't dramatically affect future products. Conversely, a broad decision could conceivably be applied to virtually any area of Microsoft's business.
"The devil is in the details," Rosoff said. "The EU has to find a way to regulate the company that will not totally stymie all development for Microsoft."
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