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Microsoft to unveil NGWS
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June 21, 2000: 4:50 p.m. ET
Debut of new Web-based software tools aimed at online businesses
By Staff Writer Michele Masterson
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NEW YORK (CNNfn) - Microsoft takes the wraps off its latest Internet software initiative on Thursday, as it makes the shift away from a PC-focused company to a Web-centric firm.
The company's newest Internet software and applications project, Next Generation Windows Services (NGWS), aims to provide services to businesses such as records storage, billing, personalization, voice-to-text translation and other capabilities delivered via the Internet rather than by way of a local server.
 While Microsoft holds a dominant share of the Web browser market, analysts say Microsoft's main rivals - Sun Microsystems (SUNW: Research, Estimates) and Oracle (ORCL: Research, Estimates) have been quicker to realize the potential of the Internet and capitalize on its growth.
"In this age of the Internet, with vendor alliances being formed and customer purchase decisions being made, it appears Microsoft has fallen behind in establishing its position in these emerging markets," CIBC World Markets analyst Melissa Eisenstat said in a June 7 research report. "Or, if it has, it's the best kept secret in the technology industry."
Justice Department suit looms
The company is attempting to make the shift at a time when the federal government and a group of state attorneys general are suing the company, claiming it used its monopoly power over PC operating systems to crush competition in the Web browser market.
During a recent presentation to Web professionals about Microsoft's software strategy for the Internet, Microsoft Chairman Bill Gates extolled the virtues of the Internet, particularly for business applications.
"The Internet will be a revolutionary tool during the next decade and will redefine business," Gates said. "Software is the key ingredient to changing the way we know the Internet today."
"There is a new phase now, a business mania around the Internet. We need a new generation of software tools that makes it easy to build this phase," said Gates.
What will NGWS do for you?
Plans for the project were first announced in January, when Gates relinquished his CEO title to Steve Ballmer. Gates said he would take on the roles of chairman and chief software architect, and devote more time to overseeing the team driving NGWS.
The NGWS project has been cloaked in secrecy, with few details forthcoming from Microsoft. From what little information has been given, it appears Microsoft has developed tools and applications that support Internet services for Web developers, and will be rolled out during the next two to three years.
"I think they're going to talk about three things at the Forum 2000 conference," said Banc of America analyst Paul Dravis in an interview with CNNfn.com.
"They'll discuss XML (extensible markup language), as the language to support e-commerce transactions. They'll talk about the deployment of NT and Windows 2000 in support of Internet service providers (ISPs) and applications service providers (ASPs). And they'll discuss Microsoft Exchange as an infrastructure platform to support collaborative services such as e-mail and calendaring," Davis said.
 "We are going to use XML as a starting point to allow messages to be exchanged between computers," said Gates in a recent presentation. "XML will allow users to get a rich and synthesized view on the Web."
Gates described using XML to manage finances, enabling users to see information from brokerages, bank sites and insurance providers in one place.
"Tasks that we thought in the past as impossible will now be rather simple," said Gates. "We are going to lead the way in XML advances."
A variety of purposes
During a developer's conference in February, Ballmer said that the new software and services could be used in a variety of ways, such as with health care records or travel itineraries.
For instance, a person's health care records that include a patient's medical history, dates of visits, payments and so forth, could be stored online and updated, using an online calendar for appointment reminders. Or an online travel service would enable users to book flight via the Net and would also notify travelers if there was a change in schedules.
"In terms of people taking advantage of the Internet, I think we can talk about this generation of browser essentially as about the equivalence of DOS," Ballmer said.
"There will be this kind of quantum leap forward in the way people use the Internet over the next several years. There will be ushered in a next generation Internet user experience. That will be marked not only by the introduction of additional devices that take advantage of the Internet, but it will be marked by a whole new set of ways for programs to work together, for users to share data with one another and with programs, and basically, almost a whole new user interface model of the world," said Ballmer.
"In this world, it should be easy for me to tell my travel agent Web site to make sure to update my calendar with my trip and to page my mother if my flight is going to be more than an hour late," Ballmer said.
The company has also cited its Passport service, as an example of a NGWS product. Passport is a virtual wallet that stores a user's identity and provides an authentication service that enables Web sites to verify identities over the Internet.
"In this world, it should be very easy for me, the end user, to have a program that runs on my PC that tells my bank and my insurance company and my broker to all put their financial information about me in my virtual safety deposit box on the Web, and let me view my information under my control," Ballmer said.
Outlook for NGWS
While industry analysts are short on details of exactly how NGWS will work, many have said that Microsoft needs the new product push as it faces increased competition from rivals such as Sun and Oracle.
Sun has pursued a vision that information should be accessible regardless of proprietary software and hardware.
"Through the Internet, we are realizing our long-standing vision of a network where information can be accessed at anytime, from anywhere, by anyone and from any device," Sun has said of its overall strategy.
One example is the use of Sun's Java application-development language that promises faster and easier development and deployment of Web applications over multiple servers.
Oracle also uses Java in its products, such as its Oracle 8i database servers and in several software offerings.
In a recent Oracle magazine article, Joseph Feiman, a research director for the IT advisory firm the GartnerGroup, Inc. said that by 2002, 90 percent or more of all desktop systems will have a Java system installed, jumping from the 29 percent today.
"Java will play an important new role in application development," Feiman said.
So, will Microsoft's migration from computer-centric to Net-centric work? Some critics have said that once again, Microsoft has arrived late to the ball. Others wonder if the company can also shift from the consumer to the corporate battleground and at such a late stage.
Banc of America's Dravis, however, is bullish on Microsoft's prospects and said it should not be counted out yet.
"We're still not at the late stage of this market," said Dravis. "There will be continual growth. Sun is strong, but Microsoft has a not insignificant presence and is a force to be reckoned with." 
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