cade, and analysts believe that Microsoft should stick to software development since that have not had the success they were hoping for, at least as it relates to competition for AOL.One of the main fights between the two have been the Instant messaging debate, which was a major factor in the approval of the AOL/Time Warner merger. Microsofts first punch to AOL was a $5 billion investment into AT&T trying to gain control of the Internet. AT&Ts purchase of TCI cable was a move to control a significant portion of the cable industry.The Time Warner merger was AOLs first major counterattack to the Microsoft/AT&T alliance. While AOL also moved in and acquired Netscape Communications (a major competitor of Microsofts browser market). AOL is committed to remain in the content business.Microsoft has beefed up its MSN site but remains committed to using the site to promote its software and services, which will prove to be a better business plan since it has historically lagged behind its competitors Yahoo and AOL in content and AOL in access. An interesting point to make is that AOL being content heavy has kept its Netscape Communicator (Browser) division on but has not done much in promoting development of that technology. With Microsoft being the only other major browser developer, AOL has effectively paved the way for Microsoft to dominate the browser market by taking Netscape browsers out of the picture. Its well known that AOL has no intention to confront Microsoft in browser technology development; furthermore AOL uses Microsofts Internet explorer in its own software. It is strange to see them acquire and shelve the only competition that Microsoft had in that arena, rather then use it in their software.Microsoft has a lot at stake here, do to the fact that they are still fighting the justice department against a possible breakup of the company. But if you think about it, Microsoft would benefit from this whole merger, since it is su...
