Once considered a niche player, Microsoft’s Server & Tools Business is now a robust and growing business, and one of the company’s most promising.
By Joshua Isaac
January 25, 2008
Microsoft’s formal launch of its next generation of server and tools software next month will help solidify the Server & Tools Business’s position as a formidable and growing competitor in this crucial market.But it wasn’t always this way.
At the Windows 2000 launch eight years ago, Microsoft demonstrated its commitment to the enterprise business by lining the stage with servers powered by Windows Server 2000. The launch foretold a breakthrough for STB, which would grow into a market leadership position.
The launch in San Francisco in February 2000 conveyed Microsoft’s willingness to bet big on the server business despite doubts voiced by the press and a crowded field of competitors.
How wrong those skeptics were.
An InfoWorld article from the week of the launch captured the prevailing sentiment. One analyst said Microsoft’s growth rate was tapering off in the server space. Another commented that with the range of options now available, such as Linux and hosted applications, Microsoft wouldn’t be able to rely on the dominance of Windows with hardware manufacturers and ISVs to be successful.
