Microsoft enhancing messaging tool

By Allison Linn
Associated Press Business Writer

SEATTLE — Microsoft Corp. is enhancing and expanding the use of its instant messaging software, a move the software maker believes could give it dominance over rivals America Online and Yahoo! Messenger.

The Redmond, Wash.-based software giant said yesterday its Windows Messenger will sport the ability to send audio and video across the Internet and allow users to share documents and even give them access to other PCs.

"Today we require you to be an auto mechanic if you want to drive the car," said Greg Sullivan, the lead product manager. "This is going to let everybody drive."

Windows Messenger, which will be included with the XP system scheduled for release in October.

The new service was announced the same day that AOL Time Warner and Microsoft resumed talks to decide if AOL will be included in Windows XP.

Talks broke down Friday after the companies could not agree to terms but resumed Saturday, Microsoft spokesman Jim Cullinan said.

Analyst said making Microsoft's messenger easy to access from the pervasive Windows system instead of MSN.com, the company's online service, could have a major impact if many users adopt Windows XP.

"It's certainly a competitive move directly against AOL to put Microsoft's messaging service on top of everybody's desktop," said Michael Silver, an analyst with Gartner in Stamford, Conn. "The issue is that certainly not everyone uses the MSN services but everyone uses Windows."

Silver said he expected to see AOL respond with some type of expanded service of its own.

Microsoft also hopes Windows Messenger will provide a platform for selling its new set of services, called .NET.

Windows Messenger is built on the technology of .NET, Microsoft's initiative for providing information and services across the Internet and on any device.

The system, still in its initial stages, will eventually provide services as varied as making doctor's appointments and notifying users of flight times.