IBM Makes A Bid For Business DesktopsIBM Makes A Bid For Business Desktops

IBM is going to try to do again what it couldn't in the '90s: Convince businesses to run its PC software instead of Microsoft's. What's new is that IBM is betting on software based on Web browsers that can co-exist with Windows and Office--not replace them.

IBM said Monday it's introducing software called Lotus Workplace that will help people manage E-mail, calendars and meetings, and workgroup collaborations. The software, which relies on IBM server-side software and can be accessed using a Web browser, works on PCs or handheld computers. IBM says it will save companies money by providing them with one computing platform across a range of devices, with more security than Microsoft's software. Workplace is available for Windows and Linux, with an Apple Macintosh version due later this year.

IBM's $15 billion-a-year software group has carved out a strong business largely selling companies behind-the-scenes middleware that runs on servers. The Workplace release is an attempt to move farther into products that face computer users. That Workplace can co-exist with Windows and Office is a significant strategic decision--IBM largely failed in previous attempts to develop alternative operating systems and productivity software to Microsoft's ubiquitous software. Other companies haven't fared much better, as attempts by companies such as Sun Microsystems and Oracle to compete with Microsoft's desktop apps met with tepid reception from business buyers.

Still, the timing may be good: Microsoft corporate VP Dan'l Lewin said last week that Microsoft's next major version of Windows, code-named Longhorn, is at least three years away from release.

However, IBM officials say the new offerings have less to do with competing with Microsoft and are more about helping companies create computing systems that are built from the ground up to deal with the demands of their particular line of business.

At a news conference in New York, IBM demonstrated how an insurance company could significantly improve the speed of claims handling by equipping agents with a mix of PCs, laptops and mobile devices that can all run the same business-specific application regardless of operating system. "This makes client devices a first class participant in the creation of service-oriented architectures," said IBM senior VP Steve Mills, referring to IT systems that are built to support specific business processes.