Microsoft vs. AOL, who will win?
  06/05/2001 1:38:33 AM MDT Albuquerque, Nm
  By Dustin D. Brand; Owner AMO

The meeting is over, and both companies are back at their homes.   Microsoft and the new AOL Time Warner have been "chatting" over the issue of AOL being placed in the new Windows XP OS to be released this October 25th. They were meeting in Denver this last week, and after many harsh words, and the realization that it simply wasn't worth it, both companies went home.

  It's not 5 years ago, when the actuality of having America Online ship with each and every version of Windows made AOL what they are today. AOL choose Internet Explorer, now AOL owns Netscape. AOL choose to have their Icon on each Windows Desktop, now AOL thinks they don't need that, at least from Microsoft.

  Sources within AOL said: "They want release from legal liability going backward and forward in time," says one AOL executive close to the negotiations. "There aren't many companies who would relinquish their legal rights as part of a business negotiation." That is akin to finger pointing, and it sounds like AOL is slinging mud against Microsoft yet once again now that they know MS could care less about them.

  This AOL/TW mentality of "it's their fault we don't have a deal, but really we don't need them anyways, we'll bypass them and go to the computer makers..." is typical AOL these days. Since the AOL/TW merger back in January, AOL has been showing their "muscle" here and there, and even went as far as making deals with Microsofts' new competitor SONY, whom MS plans on dethroning with their XBOX. AOL is choosing RealNetworks against Windows Media Player, and AOL as you can see from their above quote, is still calling MS the monopoly.

  AOL/TW is a bit hipocritical. After all, last year AOL (before the TW merger went through) was part of the leading team accusing Microsoft of Anti Competitive business tactics, and being a monopoly. Who told these two companies they should even talk? Why bother, it's a I hate you, you hate me, but together we can make money situation? Wrong.

  This is the typical business practice of NOT doing business with your direct competitor. Despite all of this here-say, the parties plan on giving a final outcome later this week.   The negotiations are being directed for Microsoft by Windows group VP Jim Allchin and for AOL by company President Ray Oglethorpe.

  Now AOL is saying that bundling its desktop software with the OS is not as important to the company now as it was when the original deal was struck. "If it happens, great. If not, that's fine," says an AOL exec, who also requested anonymity.

  Why is AOL asking for anonymity in every quote about these issues? I'll tell you why, because AOL isn't willing to tell the truth period, they'd rather be "here-say" and have the opportunity to deny they ever said anything of the sort. Ahem...

  "We are very confident of our position in the marketplace," the AOL source added. "In the competition between MSN and AOL, we'll do just fine irrespective of how Microsoft tries to use its operating system monopoly to advantage its service."

  My friends at Microsoft aren't going to deal with AOL ever again....PERIOD, it's over, forget it AOL. What AOL should be asking themselves is, Why did MS meet with us in the first place? Ahhh, that's a business secret I think AOL has yet to understand.

  On Monday, Microsoft announced that Windows XP will include a single interface called Windows Messenger enabling real-time communication among users. Both instant messaging and the capability to collaborate on shared files and applications will come bundled with the new OS. That means every computer sold with Windows XP will now serve as a distribution point for a wide range of Web services that depend upon network awareness of the user's presence and identity and the ability to exchange information in real time. This is central to Microsoft's .Net strategy and its HailStorm services initiative. It represents a long-term challenge to AOL's ambition to be the leading provider of online services (including instant messaging).

  Ahem, excuse me I needed to clear my throat again.