Can Gates the salesman sell Win2000?

Daily Newsletters

Sign up to ZDNet UK's daily newsletter.

NEWS
Microsoft CEO Gates on Thursday spent his 44th birthday in the Big Apple. While there, he was scheduled to call on Chase Manhattan's top IT brass to discuss why Chase isn't committed to deploying Windows 2000 next year, say sources close to the New York bank. Individual Chase divisions are, in fact, Microsoft shops. But the financial giant is largely committed to rival products Novell Directory Services, Lotus Notes and Unix. That doesn't sit well with Gates. Microsoft's top ambassador needs banks and other big-name customers to tout Windows 2000 at Comdex/Fall '99 in Las Vegas, two weeks from now. At the show, Gates is slated to highlight customer wins in a bid to build channel enthusiasm for the product, which is scheduled to ship February 17. Gates & Co. has a knack for lining up customers just before a product ships. In 1995, for instance, Microsoft gave Ford Motor at least 5,000 free Win95 licenses, according to a Ford employee at the time. In return, the auto giant promised to tout Win95 to the press before the operating system's official August 24, 1995, release. Four years later, the stakes are even higher for Microsoft with Windows 2000. The company can ill-afford a lukewarm reception when the operating system hits the streets early next year. Some portfolio managers already are trimming their stock holdings in Microsoft because of a dip in "future earnings" on Microsoft's balance sheet. Recent sellers include First Capital Group and Commerce Bancshares' Commerce Growth Fund, according to The Wall Street Journal. Though many financial analysts are still bullish about Microsoft, Windows 2000 is sure to get flak from chief information officers because of cost issues and migration problems. The situation on servers is especially challenging for Windows 2000. One reason: Many large shops -- including Chase, National Semiconductor, Nissan and Nortel Network -- have embraced Novell's NDS to manage their networks. Ripping out NDS and migrating millions of network objects to Microsoft's unproven Active Directory (Windows 2000's new directory service) isn't a reasonable option for most Novell shops or their resellers. Until, of course, Gates and Microsoft president Steve Ballmer come knocking. The duo often calls on Microsoft's largest customers to ensure commitments to Windows. Ballmer has paid a number of calls on New York financial institutions in recent months, say channel sources, many times to appease disgruntled CIOs. Now, it's Gates' turn. When we went to press, 24 hours had passed since his planned meeting at Chase, and it was unclear whether he sold the bank on Win2000. Microsoft would neither confirm nor deny that the meeting occurred. Chase did not return calls for comment. Regardless, Gates faced a tough sell. Even if he offered Chase the software for free -- a la the 1995 Ford Motor deal -- the bank still has reasons to balk. For starters, Chase has used NetWare and NDS for more than four years. In mid-1996, Chase IT execs even visited Novell to design and test a WAN. Sources say Chase execs from that project remain firmly committed to Novell's software.Moreover, retired Chase fellow Elaine Bond is a long-time Novell board member. A source close to Novell says Bond and CEO Eric Schmidt would "visit Chase in a matter of hours" if the bank's NDS commitment wavered. But therein lies the rub. Chase ultimately could embrace Windows 2000 for selected desktops and servers, and continue using NDS as its primary directory. In that scenario, Novell and Microsoft both would be winners, and Gates would score another customer to tout at Comdex. So far, Microsoft has lined up a handful of customers -- including Travelers Insurance and Credit Suisse -- to promote Windows 2000 at the show. Despite such public commitments, some prized Windows 2000 accounts are privately hedging their bets. At a recent Win2000 customer meeting with Microsoft in Redmond, Wash., discussion of Active Directory replication glitches prompted a handful of customers to scale back their initial Windows 2000 deployments, say sources who attended the meeting.One major customer says the problem is a "showstopper" that will force his company to use Windows 2000 primarily on desktops, with only limited adoption on servers, at least initially. Meanwhile, Microsoft is moving to address Win2000 scalability concerns. At Comdex, the company will ally itself with Unisys, Cisco Systems, Intel and EMC in a bid to prove that Windows 2000 is just as robust as mainframes and high-end servers from well-heeled competitors. The group will showcase a platform dubbed "data center of the millennium." Microsoft leaked word of the millennium project last week at Unisys' e-commerce launch in New York. The platform, a Web order-entry system, will be based on Microsoft's forthcoming Windows 2000 Datacenter and Windows 2000 Advanced Server packages. Microsoft and its partners claim the system can handle 200 million hits a day, or 4,000 transactions per second across 32 processors. To get more customers on board, Microsoft plans to market the heck out of Windows 2000.The effort could achieve epic, if not comical, status. During a marketing event in Las Vegas last week, Microsoft hyped Windows 2000 gear (T-shirts, pens, mugs, clocks and even Windows 2000 "Fun Putty") almost more than it hyped the actual software, say attendees. Moreover, Microsoft is in the midst of a 30-city tour that aims to teach 15,000 system builders how to install and manage Windows 2000 Professional. "We expect system builders to have lots of success in small business with Windows 2000," says Scott Porter, director of Microsoft's South Pacific and American OEM Division. "Large enterprises may take a bit longer to deploy it." That's what keeps Gates up at night, and on the road on his birthday. Mark Mehler contributed to this story.

Talkback

This post has been removed by a moderator.

Post your comment

In order to post a comment you need to be registered and logged in.

You can also log in with Facebook. Log in or create your ZDNet UK account below

  • Login

Will not be displayed with your comment

By signing up for this service, you indicate that you agree to our Terms and Conditions and have read and understood our Privacy Policy. Questions about membership? Find the answers in the Community FAQ

Get ZDNet UK's daily newsletter

Enter your email address to sign up

ZDNet UK Live

bdantas

Excellent article. One small correction, though--although a fresh installation of Linux Mint 12 will, indeed, provide the user with a version of...

15 minutes ago by bdantas on A tale of two distros: Ubuntu and Linux Mint
Alan Ralph

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

44 minutes ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material
Alan Ralph

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

48 minutes ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material
Moley

For Gnome 2 die-hards, it is possible to add icons to the bottom panel (or top top panel, if you prefer) which provide the exact Gnome 2...

2 hours ago by Moley on A tale of two distros: Ubuntu and Linux Mint
ramwellian

Your comments would seem pretty naive and immature. Your 'solution' appears to be, "gee, let's all just give in to the hackers and give them...

2 hours ago by ramwellian on Cloud computing security: no more oxymoron?
BugStalker

"Interesting thought ... If you installed Win7 as a dual boot on a machine that previously only had Linux, and it wrecked your Linux installation,...

2 hours ago by BugStalker on Windows 7 Declares War on GRUB
whs001

This is an excellent summary of Ubuntu and Mint and the interface differences between them. Most such articles take a very partisan position for...

2 hours ago by whs001 on A tale of two distros: Ubuntu and Linux Mint
Moley

@ewallace. Not so clear. Anyone can obtain the text, for example from here http://www.ustr.gov/webfm_send/2379. I support ACTA so long as it and...

2 hours ago by Moley on ACTA: Facts, misconceptions and questions
45283

I think WinRT is fantastic. I just wish it was an option for people that didn't want to go through Microsoft's App Store with its attendant...

6 hours ago by 45283 on Why Windows 8 needs architectural hygiene for WOA
Burn-IT

Nine people? £30m? Who's back pocket is that lot going in? And IF they say it is for new buildings, what about all the ones the government has...

7 hours ago by Burn-IT on Police set to launch three £30m e-crime hubs
ewallace

Just to be clear, nobody knows what is in the text of ACTA, here is a photograph of the text of ACTA http://twitpic.com/8h9iju as submitted to the...

7 hours ago by ewallace on ACTA: Facts, misconceptions and questions
fgvrg56

Unfortunately main issue is that ASUS is refusing to accept that they make some mistake on this version of asus Transformer prime. 1 - GPS sensor...

8 hours ago by fgvrg56 on Asus Eee Pad Transformer Prime Wi-Fi & GPS problems?
Ben Woods

@Marcus A fair question. Just talked with Archos which said it was working on an announcement for next week....

9 hours ago by Ben Woods on Archos confirms G9 Ice Cream Sandwich update schedule
Marcus Karlsson

Any update on this, considering the claimed "first week of February"?

10 hours ago by Marcus Karlsson via Facebook on Archos confirms G9 Ice Cream Sandwich update schedule
apexwm

Bill Goodrich : Just as al_langevin pointed out, with Windows Server 2008 there is no Services for Macintosh anymore. It's gone, not available....

18 hours ago by apexwm on Windows Server 2008 drops the ball for Mac compatibility
txtrainguy

Replying to an old topic that I'm currently facing with my CEO (who is on a Mac). Our servers are primarily Windows Servers, office is about...

1 day ago by txtrainguy on Windows Server 2008 drops the ball for Mac compatibility
k0tcs3

Sure, that makes perfect sense. Pay wrong-doers money and thank them for breaching your security and pointing out your flaws, that would surely...

1 day ago by k0tcs3 on US indicts Romanian over NASA climate change hack
Random_Error

I think he's referring specifically to Android apps, as Apple do regulate their App Store, but Google seem to let any old crap onto the Android store!

1 day ago by Random_Error on RIM: BlackBerry will keep 'garbage' apps out of store
Paul Fezziwig

Keep the crap apps out?! How will they compete with Android and Apple's claim to fame of having so many life changing apps? I wonder if the media...

1 day ago by Paul Fezziwig via Facebook on RIM: BlackBerry will keep 'garbage' apps out of store
Aigars Mahinovs

It has been shown time after time that if there is an author store that sells the songs at even 1$ per song and gives you a high-quality digital...

1 day ago by Aigars Mahinovs via Facebook on Copyright isn't working, says European Commission