Middleware Takes Center Stage in Microsoft Antitrust Suit

The recent government antitrust suit against Microsoft has brought into focus the crucial role of middleware in the software industry. Middleware is a layer of software that acts as a translator between the operating system and various applications, enabling them to communicate with each other. The government has cited Microsoft's repeated use of its operating system monopoly power to prevent the development, distribution, and success of middleware products as a key reason for seeking a breakup of the company.

Middleware has been around since the mainframe days but has taken on a more significant role in recent years due to the Internet and electronic commerce. With the rise of Internet applications, middleware has become a critical component in enabling different operating systems to communicate and facilitating the development of distributed Internet applications. The growth of the middleware business is predicted to continue, with International Data estimating sales at $2.77 billion last year, up 66 percent from two years earlier.

Microsoft views its Next Generation Windows Services initiative as a way to provide a solid foundation for Internet software development, much like Windows did for personal computing. However, critics see this as a repeat of Microsoft's past behavior of stifling competition by controlling the standards. Analysts believe that Microsoft will have to adapt to the open technology standards of the Internet and pursue a new business model, one that focuses on providing open and neutral middleware to remain competitive.

Key Takeaways:

• Middleware is a layer of software that acts as a translator between the operating system and applications, enabling them to communicate with each other.
• The government has cited Microsoft's repeated use of its operating system monopoly power to prevent the development, distribution, and success of middleware products as a key reason for seeking a breakup of the company.
• Middleware has been around since the mainframe days but has taken on a more significant role in recent years due to the Internet and electronic commerce.
• The growth of the middleware business is predicted to continue, with International Data estimating sales at $2.77 billion last year, up 66 percent from two years earlier.
• Microsoft views its Next Generation Windows Services initiative as a way to provide a solid foundation for Internet software development, but critics see this as a repeat of Microsoft's past behavior of stifling competition by controlling the standards.
• Analysts believe that Microsoft will have to adapt to the open technology standards of the Internet and pursue a new business model, one that focuses on providing open and neutral middleware to remain competitive.
• Dan Kusnetzky, analyst at International Data Corporation, stated that as distributed Internet applications increase, so does the use of middleware, making operating systems less important.
• Bill Raduchel, chief technology officer of America Online, observed that almost all new applications in computing are being written above the operating system, with the challenge being to write for the middleware.
• John Swainson, general manager in I.B.M.'s software group, predicted that the big battle of this decade will be in middleware, not operating systems.

Statistics:

• Middleware sales estimated at $2.77 billion last year, up 66 percent from two years earlier (International Data).
• There are approximately 200 middleware suppliers in the market.
• The growth of the middleware business is predicted to continue, with analysts predicting further consolidation and growth.

Sources:

• Jackson, Thomas Penfield. Ruling, as quoted in the article.
• Government brief, as quoted in the article, stating that Microsoft has combined the software code of separate middleware products with the code of its monopoly operating system.
• Microsoft reply, as quoted in the article, stating that the government seeks to regulate Microsoft's inclusion of any 'middleware' in Windows.
• Nielsen, Tod. Vice president of Microsoft's platform group, quoted in the article, stating that Microsoft focuses on the platform, not the distinction between operating systems and middleware.
• Kusnetzky, Dan. Analyst at International Data Corporation, quoted in the article, stating that as distributed Internet applications increase, so does the use of middleware.
• Raduchel, Bill. Chief technology officer of America Online, quoted in the article, observing that almost all new applications in computing are being written above the operating system.
• Swainson, John. General manager in I.B.M.'s software group, quoted in the article, predicting that the big battle of this decade will be in middleware, not operating systems.