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Microsoft isn't on AOL's buddy list

By Richard Morochove

First published July 29, 1999

Microsoft isn't on America Online's buddy list. A skirmish in the world of the ultimate in friendly software, instant messaging applications, has turned into an all-out war. And Microsoft, for once, is carrying the flag for open standards.

Instant messaging is one of those neat little communications applications that has taken off in popularity like desert wildfire in the heat of a California fall. At its most basic, instant messaging lets you see if a friend is online on the Internet and, if so, you may send a short text message.

Unlike e-mail, where your friend must check the e-mail box to receive your mail, your instant message will appear, usually within a few seconds, on your friend's computer screen.

Of course there are additional features in some instant messaging systems, such as online chat, file transfers between computers and voice messaging.

AOL is the undisputed leader in instant messaging. Its easy-to-use Instant Messenger was one of the prime factors behind the subscriber growth of the online service. Now you don't even need to be a member to make use of its Instant Messenger service, which is available for free download from AOL.com.

Last year AOL took over its only major competitor in the field, ICQ from Mirabilis. It's estimated that ICQ now has some 35 million members. ICQ's instant messaging software has more capabilities and customization options than AOL's software, but it's a little more difficult to use. Moreover the ICQ web site is a confusing mass of links, a virtual poster child for how not to design a home page.

It's a curious market, because instant messaging software can be downloaded free from the Internet and there is no charge to use it. AOL displays advertisements in Instant Messenger, however ICQ has remained free of commercial banners so far. The business logic for instant messaging revolves around signing up a large number of users and then trying to find some way to make money from all those eyeballs.

Even though AOL owns ICQ, each system cannot currently access users of the other.

It's estimated that AOL has up to 80 million instant messaging users, tallying up ICQ users, AOL members (who receive the software whether or not they use it) and non-AOL members who have downloaded the free AOL Instant Messenger.

That looks very attractive to Microsoft, a company that sees any software market with 5 million or more users as a prime opportunity for its own efforts.

Recently, Microsoft entered the field with Microsoft Messenger Service, a free download. But who wants to join an instant messaging service with just a handful of members?

Microsoft established a sweepstakes for U.S. residents who could win up to $10,000 just for signing up for Messenger. But that's apparently not enough.

In an effort to build popularity fast, the software giant apparently reverse-engineered AOL's Instant Messenger, so that it gained access to AOL's enormous number of IM users. MS Messenger users are encouraged to log in using their AOL IM user name and password to gain access to their AOL IM buddy list.

As if this isn't enough to shake AOL's management, Internet portal Yahoo then entered the instant messaging battle one day after Microsoft. A beta version of its own Yahoo Messenger software allows access to AOL's IM users using much the same method as Microsoft's software.

This has got AOL hot under the collar, since it considers this request for IM passwords for use in another program akin to hacking. Of course, it also represents an assault on AOL's IM stronghold.

AOL struck back, changing its system so users of Microsoft's and Yahoo's software could not access AOL IM users.

It's as if users of one telephone company's system couldn't call someone who subscribed to another company's phone system.

The Internet Engineering Task Force is working to create a standard for communicating between instant messaging systems, so you'll be able to send messages to users of different systems just as you can send Internet e-mail to anyone today, regardless of the mail software used. Microsoft is a member of the task force but, with its ownership of the market virtually sewn up, AOL has little incentive to join.

Microsoft isn't going to take AOL's digital snipping of the instant messaging wire between the two systems lying down.

According to a statement posted on the MSN.com site, "AOL has made changes to their AOL Instant Messenger (AIM) service that impacts MSN Messenger Service users' ability to communicate with their AIM contacts. We are committed to providing you the interoperability you have asked for, and are updating MSN Messenger Service to address these issues. We will post information about the new version when it is available."

For its part, AOL hints it may take legal action against Microsoft and Yahoo to prevent them from providing software that accesses AOL's IM users.

I suggest they work out their differences over a little online chat. CW

Richard Morochove, FCA, is a Toronto-based computer consultant.

Copyright ©1999 by Morochove & Associates Inc. All rights reserved. This work may not be copied or distributed by any means without our prior written permission.

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