Microsoft vs. AOL

[Chinabyte news] with the launch of the "Hail" plan, a "war" between Microsoft and AOL officially kicked off. Microsoft has high hopes for the "Hail" program, which includes more than a dozen core services, and hopes that it will change the PC-centered situation of computer users, promote the early arrival of the Internet-centric situation. Once this plan is implemented, Microsoft will not only make a heavy blow to sun and Oracle, the enemy of it, but also cause huge losses in hardware and data software, more importantly, it will effectively curb the pace of American online Time Warner's entry into the Internet. As a world-class media giant, online Time Warner has 60 million users in its own country. In addition, its access services and access software have effectively played a role in attracting users, as a result, its profit is rapidly increasing. According to US online's own statistics, 60% of e-commerce transactions on the web are carried out through its website. During the last Christmas and New Year holidays, it generated revenue of up to $2.5 billion. If the "Hail" plan successfully breaks through the sphere of influence of US online, US online will not only lose important user sources, but may also be taken away from Microsoft as an important e-commerce intermediary. Analysts pointed out that both the online Time Warner and Microsoft are focusing on the broad market that presents them, they are not allowed to cover all the market fields represented by desktops, laptops, mobile phones, personal digital assistants, televisions, and satellites. The dial-up Internet field is too small for them to satisfy. There is no doubt that the two companies will face increasingly fierce competition in the network market. If the launch of the "Hail" plan predicts that the competition between Microsoft and the United States online Time Warner will be further intensified, this is even more evidenced by a speech made by Steve Case, a leader in American online, in London not long ago. According to European reports, case revealed that the company he leads will generate 17% to 50% revenue globally over the next decade. Case's words surprised the outside world, because one week before he delivered the speech, in an interview with reporters, a senior official of his company also said that it was very expensive to expand overseas markets. To make a profit in the world market, the company still needs to "take time ". To seize overseas markets, American online must squeeze out and seize the market share of Microsoft's MSN network. As far as traffic is concerned, MSN is the No. 1 portal website that is never supported overseas. According to statistics from media metrix and Nielsen/netratings, the two most famous Internet usage survey institutions in the United States, on the European market in January this year, about 20 million of the only users logged on to and browsed via MSN, the access volume is 8 million more than the number of online users in the United States. American online's overseas dial-up online business is far behind the local development, which is also a disadvantage compared with MSN. Microsoft does not. Du LAN, manager of MSN International Business Department, pointed out that msn has achieved great success in overseas markets because MSN put first-class services to users, for example, Hotmail free email and passport identity authentication, followed by full use with local service providers to provide users with highly attractive content for their Internet browsing. His words do have some truth, because MSN does not provide dial-up Internet access services overseas. IDC analyst Barry Parr pointed out that a huge media empire owned by American online Time Warner is not only a competitive advantage with its competitors, but also a constraint for its further development. According to his analysis, US online Time Warner may not look for leading companies in a certain market field when seeking partners, but not very advanced companies. Another analyst, Corcoran, agrees with Parr. He pointed out that some of the partners developed by us online time warner are indeed not very ideal, for example, in Latin America. He said: At the beginning, American online had to do something better before it was merged with Time Warner. For example, it would be much easier to reach a cooperation agreement with a large company such as beltelsman. American online is not prominent in its recording business, but beltelsman can; American online does not have a TV business, but Bertelsmann has this business. Of course, in the international market, United States online has its own killer against Microsoft. In other words, at least some of its media brands are one of the most popular in English-speaking countries. According to Reuters two days ago, an American online official said that the current situation is considering listing the European stock market, while other funding methods are also under consideration by the company's top management, these trends are worthy of Microsoft's vigilance. All in all, the war between Microsoft and the United States online Time Warner will eventually win in the United States, the birthplace of the Internet, but their first round of conflict will occur in the European market. Well, the war curtain has been opened. Let's sit down and enjoy it.