|
Microsoft takes on Oracle
|
 |
November 16, 1998: 8:11 a.m. ET
Gates moves in on database market as Ellison's networking crusade goes on
|
NEW YORK (CNNfn) - Embattled software maker Microsoft Corp. is attacking database rival Oracle Corp. on its home turf by launching a new, integrated version of its database program, a move that may add to the antitrust debate surrounding the software giant.
Microsoft President Steve Ballmer is set to unveil SQL Server 7.0 at the Comdex computer trade show in Las Vegas, which runs through Friday. The database software is Microsoft's chief contender in a field dominated by Oracle and IBM (IBM).
Among the new features Microsoft is touting for SQL 7.0 is full integration with its Office suite of business applications, enabling the 94.5 percent of workplace computer users who already use Office to access the data through familiar Office programs like Microsoft Word or Excel.
"Making Office 2000 the front-end for your enterprise-level database is a smart choice. You can give customers and employees more ways to access data from any location, using the desktop applications they already know," Microsoft said in its release.
By enabling users to move more easily between SQL and Office programs, Microsoft essentially has repeated its controversial strategy of "bundling" or integrating its Web browser into its Windows '98 operating system.
The U.S. Justice Department and attorneys general from 20 states sued Microsoft in May, arguing that the bundling strategy violated antitrust statutes by leveraging the company's virtual monopoly over operating systems into the Web browser market.
Although Microsoft Chairman Bill Gates made light of the situation in his Comdex keynote speech Sunday, referring to it as part of a "really exciting" year, the case could have serious repercussions for the computer industry if the court decides to regulate or break up Microsoft.
The government almost certainly will be watching very carefully any attempt to integrate programs into Office.
"Office is not in this case yet, but it could be in the next case," San Francisco attorney Sam Miller told the Wall Street Journal.
However, one crucial difference in the SQL integration is that Microsoft sells SQL separately from Office as part of the closely-related BackOffice package.
In addition, such integration is not illegal in itself, provided it gives real benefit to consumers and doesn't negatively affect competition.
Ellison counter-attacks
In true samurai form, Oracle is defending itself by attacking Microsoft in a vulnerable point, this time pushing a networked database appliance that renders Microsoft's domination of the personal computer segment moot.
Oracle Chairman Larry Ellison will unveil his plans for dedicated data server computers in his Comdex address Monday night.
These specialized units would do nothing but run Oracle's database software. Because they are dedicated models, they will not need an operating system like Microsoft's Windows NT, and so would run faster and more reliably.
"Windows NT breaks a lot," he told the Journal.
Ellison said Oracle has approached server manufacturer Sun Microsystems (SUNW) about selling the machines, and also has sounded out leading consumer computer makers Compaq (CPQ), Dell (DELL) and Hewlett Packard (HWP).
"We think it's going to be a very attractively priced box," he told the Journal. "We aren't going into the system business. We just don't think one is necessary."
Microsoft (MSFT) closed up 1-1/4 at 110 on Friday while Oracle (ORCL) gained 1/4 to 33-3/16. 
|
|
|
|
|
 |
|
