NetWare 4.x: A Spy's Perspective Part II -- Microsoft's Retaliation By John E. Johnston 2000 words deck: With the possibility of NetWare 4.x becoming an Internet rival, you can bet Microsoft will be watching this evolution very closely as it develops and refines the Microsoft Network: a high- bandwidth networking infrastructure perhaps designed to take on the role as Information Superhighway. In Part I of this series I discussed how Novell could be positioning NetWare 4.x as a tool that could provide a safe alternative to the Internet for businesses. The NetWare 4.x Network Directory Services (NDS) and the connectivity of AT&T NetWare Connect Services would be the building block of this new global network. There is a lot of talk in Congress these days about the Information Super Highway and Newt Gingrich is one of its main proponents. Security and bandwidth will be major concerns when Congress begins setting the "rules" for the highway. Will Novell beat the Internet to the punch? What about Microsoft? Do you really think that Mr. Gates would allow Novell to build a network that could evolve into the Information Superhighway? What's up with the Microsoft Network (MSN) and why didn't Microsoft use the Internet for its network? This article will look deeper into how Microsoft may indeed be positioning itself and its MSN to becoming the Information Superhighway. The Future of the Highway What will this Information Superhighway of the future consist of? Will it be the Internet or rather a combination of the Internet and online services, such as CompuServe and America Online? Perhaps the biggest question is Will the government try to build and control a new network? We all know that the government is not good at building infrastructures. Sure, they could get it done, but it would cost the tax payers a fortune, be buried in bureaucracy and take several decades to implement. The good news is that Congress is finally realizing this and is actually taking steps to keep government out of ventures that can be better implemented by the private sector. So if we assume that the government will allow the private sector to build the Information Superhighway, can we also assume that government will not attempt to control and monitor the network? I think not. The Clipper chip scam proved that government wants to be able to control and monitor the information flowing through the network. Now, here comes the biggest question of all: Will the government ask the private sector to enhance the Internet or will it help private companies build a new networking infrastructure? The government's idea of the highway is a secure, high bandwidth network that can be used for many diverse needs -- from allowing monetary transactions to providing video on demand. The Internet is simply not secure enough, nor does it have the bandwidth required to fill these needs. Then along comes the Microsoft Network. If Mr. Gates can successfully build a secure, high bandwidth networking infrastructure, wouldn't the government rush to embrace it as the Superhighway infrastructure? Bill Gates sniffs out voids and builds products and services to fill that void; the Information Superhighway represents a huge void and Microsoft is well on its way to filling it. All of the details of the MSN are not available yet since many of the infrastructure components are still in the design phase. We can look at what's been done so far and we will see how this network may well be much more than the standard online service that many make it out to be. CompuServe, America Online and other online services are shaking in their boots at the thought of competing with Microsoft, but I think Mr. Gates has set his sights much higher. The MSN is being positioned to be "The Information Superhighway." Let's take a look at what we know so far about the MSN. Availability The MSN is scheduled to be available when Win-95 ships in August 1995. A PC utilizing the Win-95 operating system will be required to access the MSN. The initial version of the network will utilize telephone lines with 14.4 baud modems attached to Windows NT servers at a data center in Seattle. Initial services will include email, bulletin boards, chat services and MS customer support. Future services will include Internet access and information services. The network will initially be accessible to more than 35 countries. Internet access Early versions of the MSN will utilize the products and services of UUNet Technologies and Spyglass Inc. to provide connectivity to the Internet. UUNet will provide 28.8 KB and ISDN access links to the Internet. MS will build its own Internet browser based upon the technology of Spyglass. The important point to recognize from the UUNet and Spyglass venture is that the MSN will not have a direct link to the Internet. This will change as the MSN matures. Broadband Cabling Microsoft recently announced a deal with Tele-Communications Inc. (TCI), a cable television company servicing approximately 20 million households. TCI invested $125 million into the MSN venture and, I was told, this accounts for a 20 percent stake in the network. This makes the MSN currently worth about $625 million. One of the interesting points about the MS-TCI deal is that TCI will be able to use the infrastructure to provide more services than just the Microsoft Network. So, the MSN will utilize broadband technology. Very interesting. Broadband could certainly support video on demand and other high bandwidth applications. The use of cable TV wiring infrastructure for the MSN may be available as early as 1996. Fortunately, Microsoft has not gone as far as calling the network MSN 96, and I do not see how this goal could possibly be met. Cable vs. Telephone Lines Microsoft chose broadband cabling because of its extremely high bandwidth. Available to millions of households, broadband is the only technology available today that could support services such as video on demand. The major drawback of current broadband networks is that they do not have sophisticated switching mechanisms. These switching mechanisms allow individual nodes on the network to be addressed. The Internet uses routers to accomplish this important switching function. The Microsoft group of companies must design and develop specialized switching mechanisms in order for the broadband MSN to become a reality. With its AT&T NetWare Connect Services partnership, Novell has decided to utilize the existing telephone network to develop a global network. The current telephone infrastructure is already fully-switched but the telephone lines do not have near the bandwidth of broadband systems. As the Microsoft consortium struggles to implement a fully-switched broadband system others will be trying to boost the bandwidth of the current telephone network. Developer Support One of Microsoft's strong points is its developer support, and we can expect very strong developer support for the MSN. Development tools and conferences will be held to help service and content providers build new applications for the network. Third-Party Support Microsoft has also done a good job at developing partnerships with other companies to help in the development and deployment phases of the network. The following companies will help in the testing phase of the MSN: Deutsche Telekom, Telstra Corp, USWest Comm. Inc., Nippon Telegraph&Telephone Corp., Rogers Cablesystems Limited, and SBC Communications. The following systems integrators have also pledged support for the network: Alcatel, Andersen Consulting, Lockheed Missiles and Space Company, NTT Data Comm Systems Corp., and Olivetti. Hewlett-Packard, NEC and General Instruments will help in the development of set-top boxes for the network and NEC, COMPAQ and Intel will aid with the development of specialized servers. As you can see, many large corporations are taking a gamble on the MSN. Reading Between the Lines Many will tell you that the MSN will simply be a multimedia version of CompuServe, no more, no less. This simply cannot be true. How could Microsoft solicit so much support from so many large companies if the sole purpose of the network was to enter the online service playing field? Granted, the online service business is very large and a lot of money stands to be made. It's estimated the online industry will grow into a $2 billion industry in the next five years. Microsoft and these other companies would never take such a risk if it was all to create a new and improved CompuServe. What else could the MSN be used for? Video on demand, home shopping and software support are all great things, but this is still not enough to justify all of the efforts being focused on the MSN. How about telecommuting, WAN infrastructure for businesses and remote LAN services? Now these are some opportunities that could bring in a considerable amount of income to Microsoft. What about wireless links to the network allowing mobile computers to access MSN from anywhere on the globe? A network like the MSN could change the world in a very quick and dramatic way. The building of the MSN will take a considerable amount of time. The requirement of making the broadband network fully- switched will take many years to accomplish. Much of the electronics that will be required to deploy the network are still in the "idea" phase of development. Sure, the network will be ready when Win-95 ships, but the network we will see is only the tip of what's to come. The question is when will this brave new network become a reality? From what we have seen, I estimate that the real MSN is more than 10 years away. So, if the MSN is so far off in the future, why are we hearing so much about it today? In my opinion, this is standard Microsoft marketing strategy. They see that AT&T NetWare Connect Services will provide a reliable, secure and robust global network within a matter of months and I think this is scaring them. By announcing all of the future benefits of the MSN well in advance of its intended deployment date, Microsoft is hoping to lure potential business away from Novell and AT&T's network. So, you think I am jumping to wild conclusions do you? Microsoft is now in a head-to-head competition with Novell in the Windows NT vs. NetWare battle. Microsoft must not allow NetWare to continue to be the leading network operating system. If the Novell/AT&T venture is successful, NetWare will become firmly entrenched in the worldwide networking scheme. The Microsoft Network is key to Microsoft's business vision for several reasons. It would be the infrastructure for the Information Superhighway. It would also help Microsoft make Win-95 and Windows NT networking standards. Time to Invest? Microsoft's marketing strategy is very comparable to full warfare. We saw Microsoft go to battle with IBM in the war between OS/2 and Windows. We are now seeing the NetWare vs. Windows NT war in its primary stages. Next, we will see Microsoft vs. AT&T and Novell in the networking infrastructure war. Who will win? Only time will tell, but this might be a good time to buy some stock. Was this article of value to you? If so, please circle Reader Response Card No. NaSPA member John E. Johnston is manager of technical support and communications for a major hospital in Pennsylvania. He designs and maintains cross-platform local and wide area networks utilizing NetWare, OS/2, DOS and Windows. John can be reached via NaSCOM ID Johnjohe or CompuServe ID 73473,2146. callout: All of the details of the Microsoft Network (MSN) are not available. We can look at what's been done so far and we will see how this network may well be much more than the standard online service many make it out to be. The MSN is being positioned to be The Information Superhighway. callout: Many will tell you that the MSN will simply be a multimedia version of CompuServe, no more, no less. This simply cannot be true. How could Microsoft solicit so much support from so many large companies if the sole purpose of the network was to enter the online service playing field.