News

Analyst: Behind .NET Lurks .DOJ

Microsoft Corp. has spent plenty of time recently discussing its .NET strategy – which shifts much of the company’s emphasis from software to delivery and support of online services. However, the software giant has been murky about details regarding how .NET will be productized, or how it will fit with Windows. That’s because .NET may be more than a savvy move into the Internet economy. The strategy may be a vehicle to launch the new Microsoft applications company in the event of a forced breakup by the U.S. Department of Justice.

This is the observation of Tom Bittman, vice president and analyst with GartnerGroup, speaking at the consultancy’s ITxpo in Orlando, Fla. “The specifics of .NET – how it’s packaged and so forth – is really dependent on .DOJ,” he said. If a breakup did happen, it’s likely that Microsoft would be split into an operating system company (“Windows, Inc.”) and an applications and middleware supplier. The Microsoft applications company would be the dominant company, with about $28 billion in annual sales, compared with annual revenues of $19 billion for the Windows company.

If the company is forced to split, the Microsoft applications company could take .NET as its underlying platform. “Is .NET an operating system or something that layers on top of the operating system” Bittman asks. “Microsoft says they’re ‘both.’”

The .NET vision “becomes the vision to create a Microsoft platform that is independent of the operating systems; and moves the business model to back-end services,” said Bittman. “If Microsoft is not split, the .NET vision will continue to focus on the Windows operating system as the primary client platform.

Bittman also warned that Microsoft’s install base has been slowing down its rate of upgrades. Therefore, the software giant is seeking new revenue sources, and this is being reflected in new licensing strategies. He noted that Windows 2000 Server licenses are running 15% to 24% higher than Windows NT 4.0 Server licenses. Plus, Microsoft began imposing “reimaging” fees to Microsoft for OEM-purchased PCs; meaning that companies paid for the OEM version of Windows, then had to pay again for a Microsoft-issued license on the same machine. Large companies pushed back, causing Microsoft to back away from this policy. However, smaller to medium-size businesses still need to pay this reimaging fee, Bittman pointed out. “That means 70% to 80% of volume customers are currently not in compliance,” he said. - Joseph McKendrick

About the Author

Scott Bekker is editor in chief of Redmond Channel Partner magazine.

Featured

  • Microsoft Clarifies Project Cortex's Scope, IT Controls and Product Delivery in Q&A

    Microsoft recently offered a Q&A session on Project Cortex, its emerging "knowledge network" solution for Microsoft 365 users.

  • How To Use .CSV Files with PowerShell, Part 2

    In the second part of this series, Brien shows how to import a .CSV file into a PowerShell array, including two methods for zooming in on just the specific data you need and filtering out the rest.

  • Windows 10 Preview Adds Ability To Display Linux Distro Files

    Microsoft on Wednesday announced Windows 10 preview build 19603, which adds easier access to installed Linux distro files using Windows File Explorer.

  • Microsoft 365 Business To Get Azure Active Directory Premium P1 Perks

    Subscribers to Microsoft 365 Business (which is being renamed this month to "Microsoft 365 Business Premium") will be getting Azure Active Directory Premium P1 licensing at no additional cost.

comments powered by Disqus

Office 365 Watch

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.