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Microsoft unveils IE 5.0
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March 18, 1999: 2:44 p.m. ET
Analysts say product upgrade isn't likely to heat up the browser wars
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NEW YORK (CNNfn) - At one time, a new Web browser release from Microsoft Corp. would have been considered another salvo in the browser wars. But when the software giant unveiled the latest version of Internet Explorer on Thursday, analysts regarded it as just another product upgrade.
Microsoft (MSFT) is touting the usability improvements made to Internet Explorer (IE) version 5.0. Among the new features is AutoSearch, which allows users to enter common words or phrases (such as "Microsoft" or "Sammy Sosa") in the address bar instead of standard Internet addresses to connect to a Web site.
Also, the new the Intellisense technology automatically corrects common spelling and punctuation errors in the Internet address toolbar.
But Microsoft's grand plan is to adapt the browser to change the way "people, learn, entertain, collaborate and communicate," according to a statement.
Among the more lifestyle-oriented features is the Windows Radio Toolbar, which provides access to more than 300 radio stations.
"We're betting our future on the Web lifestyle and Web workstyle becoming the mainstream," Microsoft Chairman Bill Gates said during an IE demonstration.
War is over
Analysts, however, are underwhelmed, noting that the heyday of the browser wars have passed.
Also, as Jeffrey Maxick of Madison Securities pointed out, America Online Inc. 's (AOL) $10.1 billion acquisition of Netscape is likely to change the market landscape once again.
If you include the customized version of IE that AOL currently uses for its online service, Microsoft holds a slight edge over Netscape in the browser market. But now that its merger with Netscape is complete, AOL is expected to make Navigator its default browser.
"With AOL likely switching to Navigator, the pendulum will swing heavily back to Navigator," Maxick said.
Furthermore, the consumer-oriented improvements Microsoft has made to IE aren't likely to improve its standing in the corporate market. According to the latest market-share figures from Zona Research, Navigator still holds a firm lead among corporate users.
"It will take more than new features to get into the corporate market," said Brian Goodstadt, an analyst at S&P Equity Group.
"They have to try to make it more advantageous for OEMs [original equipment manufacturers, or computer makers] to highlight IE on their PCs," Maxick said. "But they have to be careful about tying the browser to OEMs because of the antitrust trial." 
-- by staff writer John Frederick Moore
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