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Microsoft Corp.

Microsoft Admits Defeat in Internet Standards Battle

Strategic Insights

— 2 min read

Microsoft has announced that it will license Sun Microsystems' Java software, a move that is seen as an admission by the software giant that it will not dictate the key standards in the booming market for Internet products. This decision marks a significant shift for Microsoft, which has historically dominated the standards for personal computer programs.

Microsoft will incorporate Java into its own Visual Basic Script programming language, a move that is expected to help its Internet products work on any computer with access to the Internet. The company also announced a variety of partnerships, including a cross-licensing pact with Oracle Corp., a deal with Spyglass Inc. to improve the Spyglass Mosaic Web browser, and a partnership with Computer Associates International to supply a program to run server computers and manage Web information.

The move is seen as a response to the growing popularity of Netscape Communications Corp.'s browsing software, which has become the hottest area of product development on the Internet. Netscape's stock price has risen significantly in recent days, but fell nearly 20 percent on Thursday after an analyst recommended selling the stock.

Microsoft Chairman Bill Gates said that the company believes its Internet products need to work on any computer with access to the Internet, and that the company is investing for the long term.

Key Takeaways:

  • Microsoft has licensed Sun Microsystems' Java software, a move that is seen as an admission by the software giant that it will not dictate the key standards in the Internet market.
  • Microsoft will incorporate Java into its own Visual Basic Script programming language.
  • The company has announced a variety of partnerships, including a cross-licensing pact with Oracle Corp. and a deal with Spyglass Inc.
  • Microsoft is investing in the Internet for the long term, with a focus on ensuring that its products work on any computer with access to the Internet.
  • The company has announced a partnership with Computer Associates International to supply a program to run server computers and manage Web information.
  • Microsoft has also released a language for programmers to write interactive 3-D programs, called ActiveVRML.
  • The company is also exploring an equity partnership with General Electric Co.'s NBC network to become an investor in a 24-hour news channel.

Statistics:

  • Over 8,000 companies are using Netscape's technology to develop sites on the Internet's World Wide Web.
  • Microsoft has released test versions of its Microsoft Internet Explorer, which is the fastest growing Web browsing software in the industry with 30% of the Windows 95 market.
  • Microsoft will start selling its Internet Explorer software early next year.
  • The Java language has been distributed free over the Internet this year, with more than 150 million lines of code available.
  • The market for Internet products is expected to continue growing, with Microsoft estimating that there will be 150 million users of Windows and 4.5 million developers for Windows.

Sources:

  • Microsoft Corp.
  • Sun Microsystems Inc.
  • Netscape Communications Corp.
  • Oracle Corp.
  • Spyglass Inc.
  • Computer Associates International
  • General Electric Co.
  • NBC network
  • Wall Street Journal
  • Smith Barney

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