ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, June 12, 1996 TAG: 9606120047
SECTION: BUSINESS PAGE: B-7 EDITION: METRO
DATELINE: NEW YORK
SOURCE: Bloomberg Business News
Microsoft Corp. will fill some gaps in its Internet strategy Thursday, pitching new and updated software for businesses to use in their corporate computer networks, known as intranets.
At a daylong conference, Microsoft will try to persuade companies to adopt its software to share information, track inventory and handle other nuts and bolts of business, rather than using products from Netscape Communications Corp. or International Business Machines Corp.
The intranet conference comes six months after Microsoft first outlined its Internet plans. Its shares surged then, as investors became convinced that the No. 1 personal computer software maker would compete wholeheartedly in the flourishing Internet market.
``We've been watching Microsoft's strategy slowly appearing like a developing photo,'' said Ira Machefsky, an analyst at Giga Information Group, a market researcher. ``This event shows us more what the finished photo will look like.''
Microsoft shares rose 11/2 to 1221/8.
Intranet software sales are expected to climb to $2.1billion in 1997 from $352million last year, according to market researcher Zona Research.
Microsoft will outline plans to include Internet browser and server technology in many of its existing products targeted at corporations, including its Office word-processing and spreadsheet software and BackOffice programs that manage corporate networks.
Microsoft's Office 97 will have features that let computer users publish their reports and spreadsheets on the Internet.
The conference, to be held in San Jose, Calif., will include presentations by executives including Chairman and Chief Executive Bill Gates. Microsoft expects about 600 people to attend, including corporate information-technology specialists, analysts and reporters.
``A few months ago they were seen as having no strategy,'' said David Smith, Internet analyst with Gartner Group Inc. ``Now they are gaining credibility and want to show they are serious about catering to corporations.''
The company will provide an update on the addition of Internet |c/IQ%QM3/8%93/8M9Q9Q3/8I-%9MQ3/8IQ!Q1%9-M 5AUQIMin a corporate| setting. The updated version of Windows NT is scheduled for release at the end of the summer.
Microsoft also is expected to discuss an operating system for handheld computers, code-named Pegasus. Sophisticated handheld devices could let employees link into corporate networks while out of the office. Sun Microsystems Inc. is licensing similar software using its Java language.
Other innovations include directory technology called Tripoli used by corporations to search for information stored on internal networks. Tripoli is designed to compete with software such as Digital Equipment Corp.'s AltaVista and offerings from Verity Inc.
Another technology, called Outlook, links files together and lets employees look for different documents and set up calendars.
In another piece of its Internet strategy, Microsoft said Tuesday that it will buy eShop Inc.
Menlo Park, Calif.-based eShop's software lets companies set up shop on the Internet, creating catalogs, tracking and handling sales and promoting products through sales and coupons. Netscape offers similar products through its merchants systems group.
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