Microsoft Develops Low-Cost Video Server, "Tiger", for On-Demand Programming

Microsoft, the US-based software giant, is developing a low-cost video server called "Tiger" designed to deliver computerized video and interactive programming. The company claims its prototype can operate at a tenth of the cost of rival technologies being developed by other major players, such as Oracle and Silicon Graphics. This news has driven up Microsoft's stock price, with shares increasing by $1.125 to $79.75 a share in Nasdaq trading.

Key Takeaways:

  • Microsoft's low-cost video server, "Tiger", is designed to deliver on-demand programming, potentially replacing mainframe-based systems.
  • Oracle's rival "Media Server" system, based on an nCube supercomputer, costs significantly more and requires massive computer infrastructure.
  • Microsoft believes its "Tiger" system will be more appealing to users due to its lower cost, ease of operation, and ability to update software.
  • Oracle has formed alliances with major companies, including The Washington Post, Capital Cities/ABC Inc., and Bell Atlantic Corp., to promote its technology.
  • Experts suggest that users may prefer owning a small video server over renting space on a massive system from a telecommunications company.

Statistics:

  • $1.125: Increase in Microsoft's stock price per share after news of "Tiger" development.
  • $79.75: New stock price of Microsoft shares in Nasdaq trading.
  • 10x: Cost savings of Microsoft's "Tiger" system compared to rival technologies.
  • $100 million: Annual spending by Microsoft on the information superhighway.

Sources:

  • Microsoft Corp., Redmond, Wash.
  • Oracle Corp.
  • Silicon Graphics Corp.
  • Hewlett-Packard Co.
  • International Business Machines Corp.
  • The Washington Post
  • Capital Cities/ABC Inc.
  • Bell Atlantic Corp.