Gates Launches Windows 2000
Microsoft Chairman Bill Gates Thursday launched Windows 2000 - the computer operating system Microsoft is betting its future on. With more than 35 million lines of computer code, it's one of the most complex software programs ever made.
The new system, designed to power business workstation computers and large computer servers that host networks and Web sites, is widely considered more stable and reliable than Windows NT.
Rivals aren't exactly running for cover - just yet. Executives at competitors like Sun Microsystems, Novell and Red Hat say they won't need to play catch-up in the wake of Gates' latest technology advances.
"By and large, my take is to yawn," said Bob Young, chairman of Linux software maker Red Hat. "It's Microsoft finally getting around to their next release of Windows. It's an incremental improvement to the industry - not the revolution that Microsoft will hype it as being."
That competitors are playing down the largest software release ever -- by the world's largest software company -- isn't surprising. Market analysts also say they are less than enamored with Microsoft's new features.
Long-time analysts note that the best technology doesn't always emerge as the market leader. Microsoft is in elite company as one of the best marketers of technology - whether or not it's got the best technology - and that works to the software titan's advantage.
Some analysts wonder if Microsoft's technology changes, coupled with a marketing blitz, will be enough to add significantly to the company's sales lead in business operating systems.
"Microsoft is doing what they always do," said Dan Kusnetzky, an analyst with International Data Corp. "Their approach is to create a groundswell, then convince business people that their vision is the right one to follow. Once businesses get the software installed, they have information technology departments in the position of having to support it, whether they like it or not."
Microsoft points out that Windows 2000 was developed in collaboration with Hewlett-Packard, Compaq and other hardware makers. It's also supported major software developers including SAP and Baan.
Novell says Microsoft is playing catch-up to its software. Microsoft is targeting Novell with a feature Active Directory that's included in Windows 2000. Novell says it's worried about Active Directory because of a security hole that easily lets technical employees gain access to parts of a company's network - such as personnel data - that are supposed to be off-limits.
Many say that Microsoft can scarcely think about taking over the market for high-end operating systems because it faces too much competition from a stubborn Sun Microsystems, a resurgent Novell and a scrappy group of Linux upstarts.
To Microsoft's credit, a key feature of Windows 2000 is its ability to tie together as many as four servers so they can share work and back each other up in case one machine goeout. Sun, however, points out that its software can do the same, and that later this year it will introduce software that can tie together eight machines.