Microsoft debuts corporate IM

Daily Newsletters

Sign up to ZDNet UK's daily newsletter.

NEWS
Microsoft on Wednesday will unveil a new instant messaging service aimed at corporate customers, jump-starting belated efforts by the software giant to tap the fast-growing, new market for the hugely popular technology. MSN Messenger Connect for Enterprises will add security, archiving and other message-management features sought by companies that are beginning to warm to the idea of allowing employees to conduct business over instant messaging (IM) networks. The announcement could act as a placeholder for the company while it puts the finishing touches on a more ambitious plan to develop corporate IM server technology. That product, code-named Greenwich, is still six months or more away from release. "Maybe it's just a stopgap measure for the next eight months until Greenwich actually comes out," Directions on Microsoft analyst Matt Rosoff said. In a move that signals how far Microsoft has to go, the software giant has partnered on MSN Messenger Connect for Enterprises with at least two start-ups that have established a beachhead in the corporate IM market: FaceTime Communications and IMLogic. Microsoft's entry into corporate IM comes on the heels of similar efforts from Internet competitors America Online and Yahoo. Last week, AOL unveiled Enterprise AIM, a software package that lets companies set up secure internal IM systems. In October, Yahoo announced it would begin selling its own corporate instant messaging product as part of its enterprise portal business. For the three Internet giants, corporate IM is a means to generate revenue from the technology. Instant messaging has flourished as a free service that online consumers use religiously to exchange real-time text messages. Aside from attaching advertising and promotions onto the software, companies have avoided forcing people to pay. IM providers hope that adding network security and other features to these products will convince companies to pay. "The initial need we're trying to address is bridging the enterprise IM world with the consumer IM world," said Larry Grothaus, lead product manager for MSN. MSN Messenger Connect for Enterprises will not be available until the first quarter of 2003. Representatives from IMLogic and FaceTime declined to comment on Wednesday's announcement. Companies who use MSN will have to choose between FaceTime and IMLogic for IM security and management features. Both products allow corporations to implement tools that mirror those found in e-mail servers, such as assigning identities and passwords, adding network security, and archiving and monitoring of message exchanges, according to a source familiar with the companies' product plans. FaceTime and IMLogic will install and service their management software for servers run by MSN's corporate clients. IM in the workplace
IBM has long-offered corporate IM with its Lotus Sametime product, which dominates the official business IM market, according to analysts. But it has been illicit office use of consumer IM services such as AOL's ICQ and AOL Instant Messenger (AIM) that has recently thrust the technology into the spotlight for corporate information technology managers. Companies, including top Wall Street brokerages, have banned popular consumer IM products in the workplace and have begun testing services from IM providers including FaceTime that offer security and other features, such as message archiving. These features are designed to bring the technology into compliance with regulations governing brokerage customer communications. Microsoft's attempts to woo corporate IM customers comes as the amount of time people spend chatting via instant messengers at work is ballooning. Among organisations that use instant messaging in an official capacity, Lotus Sametime captures 69 percent of the market, according to a report from Osterman Research. But the research firm found that result accounts for only a fraction of the at-work IM audience, where unauthorised IM services are rampant. People in 82 percent of all organisations are using some sort of IM application, Osterman found. Of those IM users, 70 percent use AIM, while Microsoft's MSN Messenger is a distant second with 51 percent and Yahoo! Messenger third with 44 percent. But IM use is officially sanctioned in only 34 percent of large organisations, 23 percent of medium-sized organisations, and 19 percent of small organisations; a full 23 percent of organisations surveyed blocked IM traffic at the firewall. The corporate IM client will cost $24 (£15) per user, per year -- much less than the $30 to $40 for IM products from Yahoo! or AOL, according to Microsoft. Road to Greenwich
The MSN Messenger Connect for Enterprises move could solve some problems for Microsoft as corporations increasingly look to release IM inside the firewall. Right now, the software maker faces several limitations on delivering the kind of robust, secure instant messaging solution larger companies are looking for. Microsoft's corporate messaging is largely delivered through Exchange Server. Companies using that software can enable instant messaging across, say, their corporate Intranet rather than relying on public services. But Exchange Server lacks sophisticated real-time collaboration and security features big companies are asking for. So Microsoft is moving the instant messaging technology out of Exchange Server and adding it to Windows .Net Server 2003, the successor to Windows 2000 Server. But Microsoft doesn't expect to formally ship .Net Server to the majority of customers until first quarter 2003. Even when .Net Server does ship, the corporate instant messaging component, Greenwich, won't be immediately available. In October, Katie Hunter, Greenwich product manager, said Microsoft wouldn't release the product until "probably two quarters following" the launch of .Net Server. Microsoft is positioning Greenwich as a real-time communications and collaboration operating system around which third-party developers and big businesses can create more sophisticated messaging, videoconferencing and Internet-based communications applications. Microsoft has made Greenwich compliant with the Session Initiation Protocol (SIP) advocated by the Internet Engineering Task Force (IETF). SIP is a framework for establishing, maintaining and ending Internet multimedia conferences and phone calls. Windows Messenger, the IM client shipping with Windows XP, also supports SIP and many of the features planned for Greenwich when operating across Microsoft's public instant messaging service. "Down the road we see Greenwich providing a deeper real-time collaboration infrastructure that we'll build on, so we'll continue to expand the functionality of MSN Messenger Connect for Enterprises on the Greenwich platform," Microsoft's Grothaus said. In positioning MSN for the enterprise, Microsoft not only adds capabilities missing at the server but also at the client. The majority of businesses run Windows 2000, which does not include Windows Messenger. MSN Messenger running on Windows 2000 right now does not support more sophisticated collaborative, archiving and security features. MSN Messenger Connect for Enterprises could help level the playing field with competing products. "IBM and Lotus pretty much have a lock on that market. I guess Microsoft is just worried about IBM getting even further ahead," Rosoff said. "Then Yahoo also has released some enterprise products."
See the MP3/P2P News Section for the latest on everything from MP3 players to Napster and the other music swapping services. Have your say instantly, and see what others have said. Go to the Napster Debate. Let the editors know what you think in the Mailroom.

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

JCB33

How dare film makers, artists or anybody that invests in creativity stop us pirating their works for free. I want to be able to walk into my local...

4 hours ago by JCB33 on ACTA stumbles in Germany
Moley

@GrueMaster. I prefer horses for courses rather than one size fits all. I, and I suspect most other computer users, do not really wish to have...

6 hours ago by Moley on A tale of two distros: Ubuntu and Linux Mint
greycynic

The product that scares me every time I have to use it is the Office 2007 version of Excel. The first bug that I found was applying the median...

6 hours ago by greycynic on Ten flawed products that derail productivity
GrueMaster

Nice review and very informative. One thing I'd like to add (in reply to whs001's 1st question), the main reason to have the same interface from...

8 hours ago by GrueMaster on A tale of two distros: Ubuntu and Linux Mint
Frederick Wrigley

I'be been using Mint 12 since the RC came out, and I am far more happy with the Cinnamon, the Mate, and, yes (with extensions), theGnome 3...

9 hours ago by Frederick Wrigley via Facebook on A tale of two distros: Ubuntu and Linux Mint
bdantas

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

9 hours 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...

10 hours 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...

10 hours 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...

11 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...

11 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,...

11 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...

11 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...

11 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...

15 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...

16 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...

16 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...

17 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....

18 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"?

19 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....

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