Dow Jones News Service -- February 12, 1997

NetScape To Focus On Internet E-Mail, Groupware In '97

By Carmen Fleetwood

NEW YORK (Dow Jones)--NetScape Communications Corp. (NSCP) expects to focus on Internet-based e-mail, groupware and applications in 1997, Eric Hahn, senior vice president of the server product division, told investors at the Goldman Sachs & Co. Technology Investment Symposium.

Meanwhile, Sun Microsystems Inc. (SUNW) is benefiting from a ''paradigm shift in technology to network computing,'' Ed Zander, president of Sun Micro's computer company, said in a separate presentation.

The shift is being driven by the growth of the Internet and intranet, bandwidth and ubiquity, and the implementation of Sun's Java programming language and deployment of applications, Zander said. Customer needs include a lower cost of ownership, increased cycle time and application development.

Java allows network computing to become a reality, Zander said.

In 1995, there was an explosion of interest in the World Wide Web, and in 1996 the rise of the intranet were areas that Netscape has focused on in previous years, Hahn said. Netscape has a strong, new product momentum with 16 products either released or shipped in the last three months.

The company has had a shift in its business model for many of its products by charging based on client access licenses, Hahn said.

Netscape issued a press release earlier Wednesday about new licensing terms and support for client/server software.

''The market is coming to our strengths,'' Jeff Papows, president of Lotus, a unit of International Business Machines Corp. (IBM), said in another presentation at the conference.

Lotus could sell half of a million of its servers in 1997. The company sees its market position in e-mail going forward, Papows said. According to recent data from International Data Corp. (IDC), Lotus held 27% of the market place in 1996. Papows said 1997 should be an interesting year for the company. He sees messaging, groupware and the Interent merging.

In 1997, the suite wars will be more important than the battle about browsers, Papows said. In 1996 the companies saw good growth across-the-board overseas, but in particular Southeast Asia showed the highest rate of growth.


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