Microsoft Corp has backed down on making its instant messaging service compatible with that of America Online Inc, only to try a new tack. Santa Monica, California-based PeopleLink Inc, a web community services OEM, has announced that its own instant messaging service is the first to interoperate with Microsoft’s MSN Messenger. The PeopleLink announcement has the enthusiastic support of the Redmond software giant. They recognize that interconnectivity is inevitable because it really is in consumers’ best interests, PeopleLink CEO Steve Glenn told ComputerWire. Microsoft is taking the lead to make sure that anyone who wants to connect to MSN Messenger can do so.

At a stroke, the PeopleLink deal adds its 4 million registered members to the number of net users contactable through MSN Messenger. Glenn hastens to add that IM not his company’s most popular service. While he clearly doesn’t want to become a pawn in Microsoft’s battle with AOL, he’s willing to put pressure on the online service if it means getting everyone to conform to an IETF standard. AOL is the leader in the space, he acknowledged, but the only compelling reason for them to open up is if they recognize it’s in consumers’ best interests. If we help to generate demand from folks for interoperability, that becomes harder for them to ignore.