Netscape continues push into gateway, e-commerce fields

Updates roadmap at press/analyst event.

By Andy Eddy
Network World, 6/8/98

San Francisco - As different as they may be, the venerable Golden Gate Bridge and upstart Netscape Communications Corp. share similarities: Certainly both are symbols of innovation and spirit.

However, another resemblance seems to be the yearly paint jobs they get to remain presentable. In 1998, Netscape is diligently showing off its latest coat and working hard to convince the masses that this time the shine is going to stick.

At the daylong "Strategy Day" held for press and analysts last week at a former military base in the shadow of the Golden Gate Bridge, Netscape detailed its forward-moving approach. The best news, for Netscape at least, is that many of the analysts in attendance gave indications that they're confident with Netscape's chances of success.

The event held more than its share of announcements, but started off with peppy speeches by President and CEO Jim Barksdale, Co-Co-founder and Executive Vice President Marc Andreessen and Executive Vice President Mike Homer. The trio mapped out the basics of Netscape's strategy, with involved discussions of what they're calling the "Net Economy," centered around the rapid growth of electronic commerce, and how the company's software provides an infrastructure for businesses and consumers to engage in it.

"We've transitioned better and faster than most would have imagined, [and are pushing] new uses for the Internet," Barksdale said.

Sprinkled into the presentations were references to recent deals and customer wins, including the licensing of Netscape software to Citibank. The multiple agreements meant to build up the Netcenter "portal" Web site were also highlighted, including last week's announcements of forthcoming features such as a site redesign; the user's ability to personalize the site; a change that enables the Smart Update feature to also upgrade certain non-Netscape products; and changes to the browser client to offer built-in search capabilities and a list of links related to the page currently displayed.

New deals disclosed include:

A bundling of Netscape Directory Server with Bay Networks, Inc. Contivity Extranet Switch line of products to create what they're calling "Directory-Enabled Networking." The companies claim that it'll improve administration and lower related costs.
Ford Motor Co.'s use of Netscape Directory Server in its Ford Supplier Network, an extranet that connects Ford with its many worldwide vendors.
A partnership with Sun Microsystems, Inc. that will provide "one-stop service" to enterprise customers using Netscape software under Sun's Solaris platform. Customers calling either company will be referred to a group made up of technicians familiar with both companies' products who can coordinate and expedite service issues.

Netscape also announced its updating of two modules in the CommerceXpert line of electronic-commerce software. Improvements to SellerXpert 2.0, which enables electronic commerce in a business-to-business setting, include an HTML interface (replacing the former Java interface), the ability to sell to companies through the Electronic Data Interchange network and support for Open Buying over the Internet.

New features in MerchantXpert 2.0, the business-to-consumer module, include enabling a site to personalize the marketing and advertising to the individual buyer through registration facilities and preferences, compatibility with SAP and Oracle applications, and mapping tools to facilitate integration with legacy systems.

The modules are both in beta test, and are set to ship by the end of 1998. Pricing starts at $195,000 for SellerXpert and $150,000 for MerchantXpert, both running under Sun Solaris on a two-processor system.

According to John Paul, senior vice president and general manager of Netscape's server product division, the next priority is legacy integration for its application server and electronic commerce products.

"Our product line is complete. The plan now is to execute," Paul said.

Analysts surveyed by Network World chimed in with positive comments about Netscape's message, though there are still concerns about follow-through.

"I think it's a cohesive message, but it comes down to execution. Clearly, Netscape is in a good position to leverage its strategy, and there are few companies who have the components to do what Netscape is doing," said Daniel Rimer, senior analyst with Hambrecht & Quist LLC in San Francisco, Calif.

Vernon Keenan, a director at Zona Research Inc. in Redwood City, Calif., said Netscape is about a year behind other 'Net portals in its plan to offer personalization via its Netcenter site. "My Netscape," set to be available by the end of next month, is similar to Excite, Yahoo and other are already doing. Overall, though, he's positive at the direction of the Netcenter portal, stating that its many visitors will enable the company to "dip its cup in the electronic-commerce waterfall."

"Today's Internet currency is page views," Keenan said.

Intranet magazine Senior Editor Peggy Watt contributed to this story.