Why does the name Microsoft Corp engender such fear, uncertainty and doubt? In a study that will do the company no good at all in its battles with Judge Sporkin and competitors that fear its market dominance, Killen & Associates, Palo Alto posits that Microsoft will have a major impact on the global financial services market by the year 2000, with a whopping $2,000m of electronic funds services revenues. The forthcoming study, Microsoft’s Global Electronic Financial Services Strategy: Impact and Opportunity projects that within five years, Microsoft’s pre-eminent position in personal computer software, emerging on-line services, and other strategic resources will enable it to muscle into the top 15 funds services suppliers to capture substantial business now controlled almost exclusively by banks and other financial service providers. Don’t be surprised when you see business taken away from major banks like Citibank, Mellon, and Bank of America, warned Michael Killen, president of Killen & Associates. Recent moves made by the Redmonder support many of the study’s conclusions, Killen says, citing Microsoft’s declared its intent to acquire Intuit Corp, which with Quicken would enable Microsoft to make every home and business a branch bank; its plans for the Microsoft Network, closely allied with the Internet, which would provide Internet access in the local languages of more than 30 countries by the end of 1995; build a consumer and business on-line shopping service, one of the first applications to be offered on the new network; sell 20% of its network to Tele-Communications Inc, the largest cable television operator, giving it access to the latter’s global cable customer base and setting the stage for future multimedia programming for homes and businesses; offer with VISA International and other providers, secured payment and money transfer services over its network; license Spyglass navigation software, enabling it to compete for commercial Internet applications and markets; and buy Internet access provider UUnet to provide full access to the Internet. The study is to be published at the end of the month, but the price for it was not given.
