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AOL, MSFT duel on IM-ing
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July 30, 1999: 9:34 a.m. ET
Companies create competing groups to establish standards
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NEW YORK (CNNfn) - America Online and Microsoft both want to establish instant messaging standards but each is forming its own group to do so.
Microsoft has formed its group with companies such as AT&T Corp., Excite@ Home Inc., Yahoo! Inc. and Infoseek Corp. in the hope of creating a standard that all instant messaging software will follow.
In an open letter, the software firm invited AOL, with whom it has squabbled over instant messaging technology, to join the group.
However, AOL has its own ideas. It has created an advisory group of its own on the topic that includes Sun Microsystems, Novell and Real Networks.
Also participating in AOL's group is Apple Computer Interim CEO Steve Jobs, whose company formed an IM joint venture with AOL Thursday.
America Online reciprocated Microsoft's offer, saying the software firm could join AOL's group if it desired.
Open and closed
America Online have been waging a high-profile battle over instant messaging during the last week. At issue is the openness of instant messaging technology, which currently doesn't allow for communication between different systems on most services.
America Online offers a free system, known as AOL Instant Messenger (AIM), a popular service that currently has more than 19 million registered users.
It had few serious challengers until last week when Microsoft launched its own system, MSN Messenger, which was created not only to allow MSN system members to communicate, but also to allow these users to bridge the gap to AIM.
However, in order to do so, AIM users had to input their screen names and passwords.
AOL objected to this and quickly put up technological roadblocks to prevent MSN users from accessing AIM users. Microsoft responded by using similar methods to get around them, a process that continues.
In an open letter to AOL CEO Steve Case, the Microsoft group said it wants to put an end to what it calls "cat and mouse" tactics and said interoperability between the two will be necessary someday.
"Imagine a world in which users of one particular telephone service were unable to interconnect with users of another service," the letter said.
"Similarly, imagine if AOL members could only email other AOL members. Such a world is not in the best interests of customers." 
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