| Microsoft chairman and chief software architect Bill Gates recently unveiled Visual Studio .Net, a set of development tools to permit programs from different vendors to be linked together easily over the internet in a “plug-and-play” manner.
The technology, developed over four years by 1,500 Microsoft engineers, represents a critical element of the Redmond-based software giant’s move into web services, shifting Microsoft’s revenues away from packaged software to renewable licenses.
“We are betting the company on this web service paradigm,” said Gates. “Web services are the key to productivity growth for the entire economy. These tools will enable developers to build applications more efficiently and companies run software that is cheaper to maintain.”
The tools and the web services they enable could have far-reaching implications for businesses worldwide and the structure of the information technology industry.
Companies implementing applications developed on Visual Studio .Net should be able integrate software from different vendors more easily. In addition, they will be able to connect to external partners simply, switching suppliers and adding customers more easily and at far less cost.
If the technology proves successful — and Microsoft has already distributed 3.5 million early beta copies of the software — it could have serious ramifications for systems integrators, which sew different applications together.
Visual Studio .Net threatens Oracle, which markets an integrated suite of enterprise software, and Sun, which developed J2EE, a version of Java that competes with Visual Studio .Net, and is also planning to launch Sun One, a product that integrates many different applications. BEA Systems offers a rival product that helps integrate software from different vendors.
Conversely, the technology could help software companies, such as PeopleSoft, Siebel Systems and SAP, that offer so-called best-of-breed software in particular vertical markets. It should prove much easier to integrate their products using Microsoft’s technology.
However, the software faces an uphill battle in spite of Microsoft’s huge marketing strength. Visual Studio .Net is being launched well after the rival product from Sun, which is the market leader for developing web services. | 
