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MAY 10, 2004
Office, Beware -- Here Comes Workplace IBM's new Web-based software package aims to let corporations use as much or as little of Microsoft's software as they want -- or none at all If it stood on its own, IBM's $15 billion software group would be the world's second-largest software company, trailing only Microsoft (MSFT ). Yet, most of the software IBM (IBM ) makes runs on powerful server computers, and it figures only minimally in desktop computing. That's about to change. On Monday, May 10, Big Blue is set to roll out a major new advance in its software strategy -- an integrated group of products called IBM Workplace. The strategy weaves together e-mail, collaboration software, IBM's Web portal, a small database, software for working on Web applications offline, and desktop-productivity applications including word processor, spreadsheet, and presentation manager. It's aimed not at individual consumers but at corporations. "This is among the most important announcements we have made," says Steve Mills, general manager of IBM's software group. "It really completes a picture for customers. They can see an open platform for end-to-end computing needs." TIMING IS EVERYTHING. IBM's move sets it up as a threat to Microsoft's hegemony in desktop computing. The Colossus of Redmond offers an array of software for both desktop and server computers -- all based on Windows. In contrast, IBM's package will work with all the major operating systems, including Windows, Linux, Unix, Macintosh, and those for handheld devices such as PalmSource and Symbian. A host of smaller companies already duke it out with Microsoft in desktop computing, but this competitive attack is coming from IBM -- a much more powerful adversary. IBM has been preparing this initiative for several years, but its timing is superb. That's because Microsoft's next version of Windows, code-named Longhorn, isn't expected to arrive until at least 2006 (see BW Online, 4/19/04, "How Microsoft Is Clipping Longhorn"). And new versions of the Office suite aren't expected until after that. These delays give corporations plenty of time to think about their long-term desktop-computing strategies. Will they stick with Windows and Office, or will they try alternatives? "We're delivering this here and now. It's 2004, not 2007 or whenever," says Mills. Other companies, including Novell (NOVL ) and Red Hat (RHAT ), are pushing their versions of Linux hard right now for the same reason: Mighty Microsoft is vulnerable. OPEN-SOURCE BOOST. With IBM Workplace as an alternative, corporations could decide not to buy any Microsoft software, or at least buy less. "They can use things they run on Windows, but they're not stuck with it," says Mills. For example, a customer could run Linux or Macintosh operating systems on its PCs and laptops, use IBM Workplace as so-called middleware sitting between the operating system and applications, and either tap into its custom applications or into run-the-business applications from SAP (SAP ), Siebel Systems (SEBL ), and PeopleSoft (PSFT ) located on servers. Or they can use Windows but avoid using Microsoft Office and use Workplace office software instead. With Workplace, "we don't have to pay the full amount for the full Office suite," says Ken Norland, senior vice-president for enterprise collaborative services at home-mortgage giant Countrywide Financial. (CFC ) Norland is a heavy user of IBM collaboration products and has been briefed on the new strategy. IBM's move gives Linux a boost. The open-source operating system has so far caught fire only on servers, but Workplace could make it a viable alternative on desktop and notebook computers. "This is about reinventing the office. Microsoft will have to see this as a real threat," says Amy Wohl, president of Wohl Associates, a tech consulting firm, who was briefed in advance by IBM. Microsoft could not comment on the IBM move because it didn't know the details prior to the May 10 announcement.
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