Product Strategy for the Data Center

Microsoft has been aiming at the enterprise server market ever since it launched Windows NT in 1993, but its products have been limited by scalability, availability, and management constraints; dependence on PC hardware (under the control of other vendors); and Microsoft’s inexperience with enterprise computing and requirements.

In launching Windows 2000 Datacenter server and its .NET Enterprise Servers in Sept. 2000, Microsoft signaled that it intends to overcome these obstacles to achieve success in the data center. In particular, it has taken steps to improve the basic “–abilities” (scalability, availability, reliability, and manageability) of its product line.

Microsoft is also working hard to develop products that integrate better with each other and with existing software from competitors in the data center. This will help Microsoft slip into data centers without fighting difficult head-on battles with entrenched competitors. Additionally, where in the past Microsoft sold server products that performed no particular business function by themselves, it has taken halting steps into the world of packaged server applications that deliver significant business-specific knowledge.