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The immediate target is Microsoft's Windows NT operating system (soon to be renamed Windows 2000), the centerpiece of both the next generation of industry-standard PCs and Microsoft's effort to do to Java and Sun's Solaris operating system what it did to Navigator with Explorer. In fact, McNealy's primary motive for supporting the Netscape buyout may be the prospect of saving the Netscape browser. One of Microsoft's big advantages is its ability to integrate its Windows and browser software, offering customers a soup-to-nuts package deal. With AOL on his side, McNealy can offer a similar deal--as long as Case decides that a healthy Navigator is more important to him than keeping AOL safely ensconced on Windows.
But that's an iffy proposition. Mark Mooradian, a senior analyst with Jupiter Communications, points out that Case may soon discover that Netscape is a double-edged sword. AOL's old mandate was simple: get as many people as possible onto its service. Now that it's a sprawling, vertically integrated e-commerce company, nasty intramural conflicts are inevitable. When Jeff Bezos upgrades Amazon.com's server software, for instance, will he buy it from AOL, which is the host for arch-competitor Barnes & Noble? Will the Internet service providers who compete with AOL choose Navigator as their browser, and thus enrich their fiercest rival? How will McNealy feel when AOL creates enterprise tools for NT as well as Sun's Solaris?
Bill Gates has been running this obstacle course for years. Now it's Steve Case's turn to chase him around the track.
--With reporting by Janice Maloney/San Francisco