Microsoft will also introduce an error-reporting tool that gives other software companies access to the same kinds of bug notices available to its own engineers, but relating to their own products. Based on the Watson technology developed in Microsoft Research, the error reporting will flow through a third-party company to minimize concerns that Microsoft could view that sensitive data itself. The approach provides "a wall between Microsoft and what the ISV sees," Young says.
Microsoft is also changing its royalty program for ISVs by making it easier to bundle its SQL Server database and other server software into their products and lowering the minimum revenue it requires from such deals to $10,000 over two years, from $50,000. It plans to fold its customer-relationship-management and Axapta applications into the royalty program sometime in the next year.
John Meyer, VP of business strategy for Computer Associates' AllFusion product line, understands that uncomfortable feeling that comes with knowing Microsoft is about to enter his turf. In May, Microsoft said it would ship next year a product called Visual Studio 2005 Team System, a suite of collaboration tools for developers that offers some of the same functionality as AllFusion.
"We need them to help us determine the right level of feature richness so we can be successful in their backyard," Meyer says. He also wants better insight into Microsoft's product plans. "Don't just bring me in and tell me, 'Here's the API, and here's how to do it.'"