Microsoft admits subterfuge in instant messaging saga

The instant messaging war between AOL and Microsoft took a bizarre twist last week when Microsoft admitted that one of their programmers posed as an independent consultant in order to discredit AOL's instant messaging technology.

According to the New York Times, the Microsoft employee sent an email to Richard Smith, president of Phar Lap Software, alleging that AOL was exploiting a security flaw in its messaging software to block its users from communicating with users of rival software. The email appeared to come from a consulting firm, and the author asked Smith to approach the media with the story. But Smith traced the email back to Microsoft.

Tensions have been rising between the two companies since the end of last month, when Microsoft created software that allowed its own users to communicate with those on AOL's instant messaging system.

AOL responded by closing off its messaging, but Microsoft has hacked back 13 times.

This latest volley in the messaging battle may score points for AOL, but Ashim Pal, analyst with Meta Group, says that AOL needs to back down.

"AOL is trying to protect its franchise, but every time they block an attempt by Microsoft to open up their messaging, they're digging themselves into a deeper hole," he said. "As a customer, I want to be able to instant message whomever I please."

Pal noted that AOL's recent tie-up with Novell will push the company into opening up its messaging technology. Novell has spent time and money trying to cosy up to Microsoft, he said, and it will not look kindly on having its customers blocked from Microsoft's instant messaging.