Microsoft Maps Exchange's Future

The next version of Microsoft Corp.'s Exchange server software,

code-named "Titanium," is scheduled for availability in mid-2003 and

will be released to hold customers over before shipping a future version

of the software based on its .Net code, according to company executives.

Titanium will be based on the same code used for its predecessor,

Exchange 2000, Microsoft's messaging and collaboration server software.

Titanium will not be part of Microsoft's .Net portfolio, though it will

support the technology Microsoft has developed for delivering

applications and services over the Internet. A future release of

Exchange, code-named "Kodiak" is the one that will be built on the .Net

code base, according to Microsoft.

Kodiak is also expected to be the release that make use of unified data

storage technology being developed for the next version of SQL Server,

code-named "Yukon," said Microsoft's Jim Bernardo, a project manager

with the .Net Enterprise Server team.

"Kodiak and Yukon really represent the next generation of what we're

doing," Bernardo said. "The idea with Titanium is to address the issues

our customers have with the current code base."

Microsoft Chief Executive Officer Steve Ballmer, will detail the

software Monday at the company's Fusion partner conference in Los

Angeles.

New features in Titanium include better antivirus and junk mail

protections; improved integration with Microsoft's Outlook e-mail

software; built-in support for third-party mobile devices, such as

Research in Motion Ltd.'s BlackBerry, and bolstered unified messaging

features allowing users to work with voice mail, e-mail and faxes in one

window, Bernardo said.

With Titanium's release, Microsoft plans to discontinue development of

its Mobile Information Server (MIS) software, Bernardo said. MIS is

intended to securely link mobile devices such as cell phones and

handhelds with corporate data and applications.

MIS' functionality will be divided in three and "baked into" other

Microsoft products, Bernardo said. Titanium will handle core

mobile-device access functions, while MIS' mobile applications

development tools will be incorporated into the next version of

Microsoft's Visual Studio .Net. MIS' security features will be

transferred to Microsoft's Security and Acceleration Server firewall

software, he said.

"We won't pull MIS off the market until we have our bases covered,"

Bernardo said.

Titanium is scheduled to enter beta testing in the fourth quarter of

this year. Its final release is expected to ship around the time that

Microsoft ships the next version of its Office software.

Microsoft's time frame for delivering a .Net version of Exchange appears

to be slipping. At the company's MCE 2001 show in October, officials

said a Yukon-linked .Net Exchange update would arrive in 2003. Now,

Titanium is the Exchange update scheduled for a 2003 release, and

Bernardo said Microsoft has no hard release dates yet for Kodiak and

Yukon.

Meanwhile, IBM Corp. is promising a September release for new versions

of its competing Lotus Notes and Domino software, and Oracle Corp. is

readying its own collaboration software targeted directly at taking

market share away from Microsoft's Exchange. Now in beta testing, the

Oracle Collaboration Suite will integrate with Microsoft's Outlook,

include standard messaging and collaboration tools such as calendar,

e-mail, voice mail and workflow management features, and cost less than

Exchange, according to Oracle.

"If Oracle is really serious about this offering, it could become a

credible alternative to Lotus/Microsoft," analyst David Ferris, of

Ferris Research Inc., wrote in a research note. "If Oracle can deliver

much better reliability and lower TCO (total cost of ownership), along

with high Outlook fidelity and voice innovation, many businesses might

be distracted from their current Exchange/Notes orientation."

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