Office goes to Greenwich

Today, Microsoft announced branding for Real-Time Communications Server, formerly known as Greenwich. Under the official branding, the new corporate messaging software, which is beta testing, will join the Office System family of products. The positioning is part of a two-fold Microsoft strategy: Increased cross-integration of desktop and server features and consolidating broader software families into “development platforms” upon which other companies build products.

First positioning: The branding, Office Real-Time Communications Server 2003, is consistent with other recent Microsoft announcements that make server software part of the company’s desktop family of products. In April, Microsoft similarly rebranded the second version of its software for creating business Intranet portals as Office SharePoint Portal Server 2003. RTC and SharePoint Portal Server rely heavily on features that will ship with Office 2003, which also is beta testing. RTC, which requires Windows Server 2003, also works with Exchange Server 2003, another product in beta testing. RTC also hooks into Office Outlook 2003, which is expected to ship with both the new versions of Exchange and Office.

Microsoft is offering RTC as an alternative to consumer instant messaging services that many businesses use for wont of robust, corporate alternatives. But Microsoft’s broader strategy of increased cross-integration of desktop and server software would require many businesses to invest in two, three or more products to realize the full features benefit. On the other hand, companies choosing to standardize on Microsoft products would benefit from many time-saving features that result from the cross-integration.

Second positioning: Microsoft is turning all of its main product lines into “development platforms” upon which other companies build products. For a long time, Microsoft took this approach only with Windows, which the company successfully established as a universal platform other software developers create products for.

With sales slowing among core product categories, Microsoft is seeking to expand the “platform play” to other software offerings. In March, Microsoft rebranded its line of desktop productivity software as Office System and in April its back-end software as Windows Server System.

Microsoft’s strategic shift doesn’t stop there. The company appears to be positioning the main products from its Business Solutions Group--Great Plains, Navision and MS CRM--as another development platform. Microsoft has made no official announcement in this area. Such a move could greatly impact smaller software developers in a market where Microsoft is not yet dominant. The software giant apparently is considering turning its Business Solutions products into a “horizontal” platform onto which smaller software developers create “vertical” solutions.

Both positionings: Over time, Microsoft would like to cross-integrate more features within each system, putting less emphasis on individual products such as Word or Outlook. At the same time, along with unifying .Net Framework and Visual Studio .Net development tools, Microsoft would like the systems to become platforms upon which other companies build their own products or to which they add services. Competitors in similar markets face increased challenges as Microsoft leverages its dominant position in multiple markets through cross-integration. Companies willing to develop vertical products stand to benefit from the standardization Microsoft could bring to desktop productivity, server and other software markets.

Posted by Joe Wilcox at May 27, 2003 09:26 AM