Online War Erupts Over Instant Messaging Services

Strategic Insights -

The digital world witnessed a heated dispute between Microsoft and America Online (AOL) over their respective instant messaging services. Engineers from both companies engaged in a back-and-forth battle, with each side trying to outmaneuver the other, as AOL attempted to block users of Microsoft's new messenger service from contacting its members. The dispute began when Microsoft launched its new service, enabling users to send and receive typed messages that pop up instantly on the recipient's computer screen. This move threatened to disrupt AOL's dominance in the instant messaging market, with over 25 million people using its service and carrying over 780 million instant messages daily.

Key Takeaways:

  • Microsoft's new instant messaging service allows users to contact members of AOL's rival service, a move that AOL is determined to block.
  • The dispute began when Microsoft launched its new service, enabling users to send and receive typed messages that pop up instantly on the recipient's computer screen.
  • AOL has 25 million users and carries 780 million instant messages daily, nearly 12 times the number of emails sent by its users.
  • The companies have been engaged in a back-and-forth battle, with each side trying to outmaneuver the other.
  • Microsoft accused AOL of refusing to participate in efforts to establish open standards for messaging services.
  • AOL claimed that Microsoft's new service posed a security risk to AOL members because users must type in their AOL passwords.
  • Microsoft charged that AOL was attempting to make "unauthorised incursions" into its network and compared its tactics to those of computer hackers.

Statistics:

  • 25 million people use AOL's instant messenger service.
  • 780 million instant messages are carried by AOL's networks daily.
  • 35 million new users were added to AOL's network last year when it paid $325 million for the competing service ICQ.
  • The number of e-mails sent by AOL users is one-twelfth the number of instant messages carried daily by AOL's networks.

Sources:

  • "Financial Times Limited 1999. All Rights Reserved."