AOL focuses on Netscape workers, customers

Article Abstract:

The success or failure of AOL's $4.2 billion acquisition of Netscape Communications will likely be dependent its ability to retain Netscape employees and customers. Many employees and customers of Netscape are concerned about how the takeover will affect them and are unsure of AOL's ability to sell software, particularly to a corporate market. In order to keep customers, AOL will have to reassure them that the electronic commerce software and Web-browser software they acquired will continue to improve. To accomplish this, AOL has signed a side deal with Sun Microsystems to jointly develop and market specific Netscape products. One of AOL's biggest challenges will be retaining the Internet Service Providers that use Netscape's browser and are the company's biggest customers. AOL will have to work to rasure the industry that it is not attempting to create closed technology standards.

United States, Strategy & planning, Planning, Mergers, acquisitions and divestments, Company acquisition/merger, Netscape Communications Corp., NSCP, Company business planning

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The Web's little secret: it's staler than you think; caching pits big services vs. publishers

Article Abstract:

The benefit of caching is that it appears to make the Web operate faster, while the down side is that it interferes with the latest available information. Large networks use caching, a system of storing copies of Web pages on proxy servers, in order to provide quick Web access to their customers. Unfortunately, caching makes the Web page that users view hours or even days old. Publishers are unhappy with this practice because their sites are displayed out of date and they are frequently unaware of how many times the site has been downloaded, as caching interferes with the site's ability to track the individuals that are viewing the pages. ISPs defend the practice of caching, claiming that it eases congestion and traffic on the Internet as well as saving time for users.

Services, Internet/Web overview, Cache memory

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AOL seeks to prod retailers by shifting focus to 'rent' instead of commissions

Article Abstract:

AOL is changing its pricing policy for electronic retailers from collecting a percentage of earnings to charging them rent to lease a space on AOL's network. The Internet service provider explains the move by claiming years of experience with electronic commerce, the company has learned that commissions are not the most affective way to increase merchant's sales. AOL believes that when ISPs collect commissions rather than rent, there is no incentive for the merchant to succeed, rather they use their sites as experiments. For AOL the new plan will guarantee revenue that is paid regularly and subject to the variables of commission. This is important for the ISP, which needs to bring in revenue from other sources than its member-access fees.

Prices and rates, Internet services, Contracts, Electronic commerce, E-commerce, Company internet strategy, Company pricing policy

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