Microsoft extends IM lineup

Next month Microsoft plans to roll out the next version of its enterprise IM software, Office LCS (Live Communications Server) 2005. That release will be followed in the first half of 2005 by a new IM client, code name Istanbul, which will add telephony integration.

LCS 2005 includes support for federation, which allows an enterprise to extend its IM and presence service to other companies running LCS 2005. The updated version also connects workers to IM from outside the corporate network without requiring a VPN connection. In the first half of next year, Microsoft will offer LCS 2005 interoperability with popular public IM services run by Microsoft, Yahoo, and America Online.

Additionally, LCS 2005 will be available in two versions: a Standard Edition and an Enterprise Edition. Both editions support federation, outside access, and interoperability. To take advantage of these key new features, however, LCS users will have to set up an additional LCS server and run that as an edge proxy server to connect to other Microsoft product users, allow external connections, or connect with public networks, said Dennis Karlinsky, a lead product manager at Microsoft.

Enterprise Edition is designed for use by large organizations. Priced at $3,000 per server, the product provides support for as many as 20,000 users and requires Microsoft’s SQL Server as a data store for user information.

LCS 2005 Standard Edition includes MSDE (Microsoft SQL Server Desktop Engine) and uses that for storing user information, as does the current LCS 2003. Users still need SQL Server for such features as archiving IM and logging user actions. Standard Edition, priced at $750 per server, supports as many as 15,000 users.

Pricing for CALs (Client Access Licenses) was not disclosed. A Microsoft spokesperson said pricing likely will not change much from the $25 per CAL charged for LCS 2003.

Microsoft’s upgraded IM server is a substantial step forward, said Peter Pawlak, a lead analyst at Directions on Microsoft. “Companies that were hesitant with LCS 2003 are going to find a lot to like in LCS 2005 that will provide a good incentive to go ahead and start deploying.”

There’s one caveat, according to Pawlak. “Pricing is my main concern,” he said. If Microsoft were to increase the price of CALs, it could make LCS too expensive. “It really boils down to what is the CAL price, since Microsoft has not released that yet. That is a pretty important number still to be obtained.”

LCS 2005 will work with the current Windows Messenger client and with the forthcoming Istanbul client. By tying in telephony, the Istanbul client adds traditional PBX telephones.