AOL-IM and MSN: A Rant
Submitted by kebernet on Tue, 12/14/1999 - 11:47
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Ok, unless you have had you're head up something the last few days, you have heard about the spats between AOL and MS on IM (instant messaging) systems. Let me summarize: Microsoft has been putting together a universal IM client that can communicate with AOL-IM, ICQ, Netmeeting, and Yahoo/Ichat pager users. A single, universal IM client. AOL has since taken steps to cut the MSN clients off the AOL-IM servers, Microsoft has patched, and AOL has cut them off again.On the surface, this might seem that Microsoft has taken a reasonable position on this issue. Standards are what has made the net great, and a standard for IM clients, just like email, would be wonderful... but lets be real for just a moment.AOL IM is paid for by ad banners. Between AOL-IM and ICQ (another AOL property), America Online carries 750 MILLION instant messages a day across their server. While these are mostly "Hey, what's up?", that is still a signifigant cost to AOL in bandwidth and hardware. When people usurp using AOL's client and thereby the banner ad's, AOL has not way to recoup the costs of operating these servers except to sell the demographic info they collect.. Something most of us would preferr not become the business model for this.While I know about talk and ytalk, let's face it, AOL created this market. AOL IM was one of the biggest reasons the AOL service took off so wildly through the Mid-90's. They deserve to make money off of this. What I see really happening: MS knows they can run their whole company off of OS revenues alone. They could give away every other product they make and still be profitable. All they want to do is take away an area from AOL that they are dominant in, event though MS has no plans to make money off the deal. It is EXACTLY the same tactics they played against Netscape during the "browser wars". Ok to the geek community, Netscape had a lot more street cred than AOL does now, but the fact of the matter is, it is still the same battle.My 2 cents.







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