Mountain View, Calif. - Most observers expected Netscape Communications Corp. to knuckle under and give its browser away for free, but few imagined that it also would give away the store.
Late last week, Netscape announced that effective immediately its Navigator browser and Communicator client suite will be distributed free of charge. Additionally, the company's Unlimited Distribution program enables PC makers, Internet service providers, telephone companies, and others to distribute the client software without paying a cent.
But the real shocker was Netscape's pledge to post the source code for its upcoming Communicator 5.0 suite early next year, allowing developers to modify and reuse the product of so many Netscape man hours.
This move seems to signal Netscape's attempt to regain its influence over the Internet. Netscape hopes that these aggressive programs will not only help it gain back its lost market share in the browser market, but also give it a stronger hand in future battles with Microsoft. With more browser market share, Netscape believes that its other offerings can hop more easily into enterprises, a market the company is increasingly relying upon for revenues.
"Client market share is the seed corn for our enterprise software business and Netcenter, our online Website service business," said Jim Barksdale, Netscape's president and CEO. "We're excited about the Web site . . . because we get a significant revenue from that and think that it can grow and prosper. But we're also very committed to building enterprise software products. On one hand we're like an Oracle, and on the other hand we're like a Yahoo."
Netscape will create a special Web site that will enable developers to download the source code, post modifications and participate in newsgroups for collaboration and discussion.
Netscape promises to continue the source code giveaway. "By giving away the source code for future versions, we can ignite the entire Net community and rally it around the Communicator platform," said Mike Homer, Netscape's executive vice president of worldwide sales and marketing.
Homer indicated that the process is similar to those that made the Apache Web server so popular. He said the license that accompanies the download of Apache source code requires a developer to offer any enhancements back to the Apache community for potential inclusion in later releases. A recent survey of close to two million Web servers by Netcraft, a consultant and network-service company based in the United Kingdom, revealed that Apache is the most commonly used server, with software at just over 45% of the sites surveyed.
Netscape indicated that it would review all enhancements and decide which would end up in its branded commercial release. While any company could release its own browser based on Netscape's source code, only Netscape's version could carry the Netscape logo.
Rob Enderle, senior analyst for Giga Information Group, Inc., of Santa Clara, Calif., thinks that these moves can result in a 10-point increase in Netscape's market share. But he also notes that such a gain may come with a price if Netscape isn't careful.
"The source code, without controls on it, can create a number of service and support problems. This might cause pages to notdisplay correctly or applets to not load properly," Enderle said.
Netscape customers were pleased with the news. "It's going to help spawn an open environment and additional competition to decrease Microsoft's hold. It should make it a more fair market," said Steven Durflinger, software project manager at Los Angeles-based Southern California Gas Co.
Netscape Communications: (650) 254-1900.
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