Thanks Josh. Corporate giants AOL Time Warner and Microsoft are set to face off in what could prove to be the most influential power struggle the Internet has ever seen. What once started as a mutually beneficial relationship has deteriorated into intense fear and loathing, as Microsoft prepares to directly compete with the largest online service provider in the world, former ally America Online. Microsoft's upcoming Windows XP will be the first step taken toward integrating Web services directly into the OS, a move that has AOL struggling to respond. While Windows XP looms on the horizon with an improved embedded media player and instant messenger, Microsoft has also been preparing to launch into beta HailStorm, an effort to bring Web-based services to the desktop. The initial services include myProfile, myAddress, myContacts, myInbox, myWallet, myDocuments, myCalendar, and others. Most importantly, seamless Passport authentication allows users to access HailStorm services by simply logging into Windows. For AOL, the threat of HailStorm's potential force is very real. By continuing to innovate, Microsoft is effectively phasing out the need for third party applications. If AOL is indeed excluded from Windows XP, new users will no longer be inclined to use the client; all AOL-like services will be readily available within the operating system through either bundled Microsoft software or HailStorm.
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