Microsoft debuts corporate IM

Microsoft is set to unveil a new instant messaging service aimed at corporate customers, jump-starting belated efforts by the software giant to tap into the fast-growing, new market for the hugely popular technology.

MSN Messenger Connect for Enterprises will add security, archiving and other message-management features sought by companies that are beginning to warm to the idea of allowing employees to conduct business over instant messaging (IM) networks.

The announcement could act as a stopgap for the company while it puts the finishing touches on a more ambitious plan to develop corporate IM server technology. That product, code-named Greenwich, is still six months or more away from release.

In a move that signals how far Microsoft has to go, the software giant has partnered on MSN Messenger Connect for Enterprises with at least two start-ups that have established a beachhead in the corporate IM market: FaceTime Communications and IMLogic.

Microsoft's entry into corporate IM comes on the heels of similar efforts from competitors America Online and Yahoo. Last week, AOL unveiled Enterprise AIM, a software package that lets companies set up secure internal IM systems. In October, Yahoo announced it would begin selling its own corporate instant messaging product as part of its enterprise portal business.

For the three internet giants, corporate IM is a means to generate revenue from the technology. Instant messaging has flourished as a free service that online consumers use religiously to exchange real-time text messages. Aside from attaching advertising and promotions onto the software, companies have avoided forcing people to pay. IM providers hope that adding network security and other features to these products will convince companies to pay.

"The initial need we're trying to address is bridging the enterprise IM world with the consumer IM world," said Larry Grothaus, lead product manager for MSN. MSN Messenger Connect for Enterprises will not be available until the first quarter of 2003.

Representatives from IMLogic and FaceTime declined to comment on today's announcement.

Companies who use MSN will have to choose between FaceTime and IMLogic for IM security and management features. Both products allow corporations to implement tools that mirror those found in email servers, such as assigning identities and passwords, adding network security, and archiving and monitoring of message exchanges, according to a source familiar with the companies' product plans.

FaceTime and IMLogic will install and service their management software for servers run by MSN's corporate clients.

Jim Hu writes for News.com. New.com's Joe Wilcox and Evan Hansen contributed to this report