AOL Puts Microsoft on Alert

In their ongoing quest to one up the other, AOL is preparing to debut its answer to Microsoft's .NET Alerts, aptly titled AOL Alerts. First announced as a "soon-to-be-launched" Web service for the release of AOL 7.0 last week, users of AOL Instant Messenger will also be able to receive notifications. AOL has begun beta testing Alerts and recent internal AIM builds viewed by BetaNews showcase the new feature.



AOL Alerts is a customizable notification service for news, sports, finance, and weather. After selecting which alerts to receive, notifications are sent directly to the instant messaging client via an "AIM Alert" window. For those who never want to be out of touch, the service will also "deliver alerts to your cell phone, handheld device, or even your pager."



Both AOL and Microsoft continue to match features tit for tat in an effort to draw users away from the rival service. Microsoft similarly announced a preview of .NET Alerts on October 9, calling it "the first user-centric Web service of its kind." .NET Alerts comes as part of the company's .NET My Services initiative, originally code-named HailStorm.



Updated versions of MSN Messenger and the XP-tailored Windows Messenger, featuring .NET Alerts, are due to debut this week, simultaneously with the launch of Windows XP.



AOL has never lagged far behind Microsoft, however. AOL 7.0 was released shortly after the unveiling of MSN 7, and stole much of the media thunder. But how long that will last remains to be seen. Pre-empting its competitors' announcements to establish market dominance is nothing new to Microsoft. Even in the early days of the Web, Microsoft publicly criticized Navigator 3.0 and touted the superiority of Internet Explorer 3.0, which arrived just days prior to Netscape's release.



Netscape is no longer primarily a browser company.



The battle will undoubtedly grow fiercer as Windows XP rears its head and AOL is forced to defend its crown. While the media giant presently boasts over four times the users of MSN, Messenger will now be tightly integrated into the operating system, with MSN Explorer installed by default.



AOL has publicly downplayed the threat, although internal AOL documents viewed by BetaNews demonstrate concern within the corporate ranks about falling behind Redmond.



Microsoft has already garnered more Web services partners, including 20 for .NET Alerts alone. Among the names is eBay, which happens to run AOL banner ads on its Web site.



Perhaps the largest advantage, Microsoft seems to have developers in check. The .NET Alerts Developer Edition will be distributed at this week's Professional Developers Conference in Los Angeles, enabling partners to eventually transition from .NET Alerts to full blown .NET My Services support.



But AOL isn't likely to go without a fight. As first reported by BetaNews, AOL has recently begun rolling out a universal sign in service -- code-named Magic Carpet -- to compete with Microsoft's Passport. "Screen Name," as Magic Carpet is now known, will eventually power all AOL properties and currently works with Alerts.



AOL will also take on Sun Microsystems in the ID game. Sun, with some 30 partners, is preparing what it calls the Liberty Alliance Project -- its own java-based authorization system. Microsoft CEO Steve Ballmer recently went into attack mode, stating "AOL and Sun have a huge joint venture, and they couldn't even get AOL to participate in their thing. What kind of craziness is that? It just shows you the weak foundation on which they are building."



AOL is expected to release AIM 4.8 complete with AOL Alerts in the coming days, around the same time Messenger 4.5 is unveiled with Windows XP on October 25.

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