Redmond wants you to get the message
By Ina Fried
http://news.com.com/Redmond+wants+you+to+get+the+message/2100-1010_3-6087607.html

For Microsoft right now, the business of workplace communications looks 
a lot like the server business of the early 1990s.

Like then, there are a number of companies all trying to provide the 
same thing--this time, a way to bring together voice mail, e-mail and 
other digital communication in the corporation. But, also like then, 
many of their products are one-off approaches that don't work well with 
others.

So to make its mark in this market, Microsoft is hoping that it can do 
what it has done in the past--create key underlying software, and then 
convince the rest of the industry to build on top of its architecture.

"This is an area that is ripe for that," Jeff Raikes, president of the 
Microsoft Business Division, said in an interview.

On Monday, the software maker will outline its vision for unified 
communications at a San Francisco event and give specific details of 
several products coming over the next year. "We see software as being at 
the center of addressing these sets of issues and putting people in 
control of their communications," Raikes said.

The move is key to Microsoft's bottom line.

About five years ago, Raikes talked about aiming to double Microsoft's 
nearly $10 billion Information Worker business unit over the coming 
decade. But the unit has largely seen single-digit growth, despite 
Microsoft's expansion of its Office business with things like Live 
Meeting and the collaboration program Groove.

Unified communications software is an important part of Raikes' effort 
to get back to double-digit growth and to reach his lofty goal of 
increasing the unit's business twofold.

"It will certainly be a multibillion-dollar business for us in just a 
few years," Raikes said. "We are going to see a lot of growth."

Raikes said he will go into more detail on his plans at a meeting at 
Microsoft's Redmond, Wash., headquarters next month for financial analysts.

New names, features
On the product side of its new push, Microsoft is largely expanding 
several existing communications titles into new areas. Live 
Communications Server, which provides business instant messaging and a 
way to see which employees are online, is being renamed Office 
Communications Server, for example. The next version is expected to 
build in Internet telephony, and voice and video conferencing. It will 
also have Web conferencing abilities via Microsoft's Live Meeting 
technology.

The company also plans to add telephony features to Office Communicator, 
an employee desktop product that has largely been used as an 
instant-messaging client. And with Exchange 2007, the next update to the 
e-mail server software, workers will be able to access voice mail and 
faxes from their PC, Microsoft said. It will also let them dial in to a 
telephone to get voice access to their e-mail, calendar and other 
information.

The new Exchange is due late this year or early next year, while the new 
versions of Office Communicator and Office Communications Server are due 
out in the second quarter of next year.

Microsoft is not alone in eyeing this market. There are the many niche 
providers that already offer similar technology to the products the 
software maker is releasing. Beyond that are the big players, including 
Cisco, that are going after unified messaging customers.

The foundation for Microsoft's push into unified communications was laid 
earlier this year, when it merged its Real-Time Communications unit with 
its Exchange e-mail server software group into a single Unified 
Communications unit.

Beyond its own efforts, Microsoft is hoping to convince others, both 
hardware and software makers, to opt to build communications products on 
top of its platform. On Monday, it will announce a pact with Motorola, 
which will build phones that use Microsoft's software. It will also 
outline a deal for Hewlett-Packard to expand its Exchange consulting 
into a more detailed service that helps businesses unify all of their 
communications technology using Microsoft products.

A number of business telephone makers, including Polycom, LG-Nortel and 
Thomson Telecom, plan to produce phones and video devices that have 
Microsoft's Office Communicator for devices software built-in. Plenty of 
other hardware companies are also expected to offer wired and wireless 
USB phones, and other devices, that tap into Microsoft's technology.

 "We'll have hundreds of companies doing various products," Raikes said.

The software maker is also commercializing a product from its research 
unit. Next year, it plans to sell a 360-degree Web camera under the name 
"Microsoft Office RoundTable." The product, previously known as 
"RingCam," has been touted frequently in demonstrations by Microsoft 
Research.

The RoundTable camera and new phones built using Microsoft's technology 
are also slated for the second quarter of 2007.

On the software side, Microsoft is trying to get enterprise software 
makers to embed its presence technology in their products. For example, 
customer-relationship management products can be built to pop up a 
customer's records whenever they are calling on the phone.

"It's an obvious thing to do," Raikes said.


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