Microsoft Releases Beta for Microsoft Merchant System

Do Young Rhee (dyrhee@microsoft.com)
Tue, 06 Aug 1996 06:24:57 +0900

Aug. 5, 1996
Microsoft Releases Beta for Microsoft Merchant System
More Companies Turn to Microsoft than Any Other Software Solution
For Selling on the Internet

REDMOND, Wash. - Aug. 5, 1996 - Today, at a training workshop for more
than 175 major corporations from around the world, Microsoft Corp.
delivered on the first of the company's Internet commerce goals by
releasing the beta version of Microsoft? Merchant System. Microsoft
Merchant System is a secure, comprehensive Internet retailing software
product that provides companies that want to sell merchandise over the
Internet with the ability to create a compelling consumer experience
with limited custom development.
Microsoft Merchant System can be used to run a single storefront or to
host multiple storefronts to create an Internet mall environment.
Incorporating many of the technologies obtained in Microsoft's June 1996
acquisition of eShop Inc., the technology provides several benefits to
companies that set up Internet commerce sites, enabling them to
accomplish the following:
* Create a compelling and secure shopping experience
* Conduct dynamic, promotion-based merchandising by combining detailed
user and order tracking with targeted discount promotions
* Integrate Internet storefronts with existing systems
* Conduct secure Internet payment as supported by VeriFone? vPOS?
technology. (A joint announcement by Microsoft and VeriFone Inc. also
released today has additional information.)
"By making it easier for merchants to create and maintain powerful
online stores, we believe that there will be a dramatic increase in
Internet commerce, providing companies with new sales channels and
business opportunities," said Hank Vigil, general manager of the
electronic commerce group at Microsoft. "Microsoft is committed to
providing the best shopping experience for consumers and the best
merchandising tools for merchants. We are excited and encouraged by the
high number of companies attending our Microsoft Merchant System beta
workshop."

Building State-of-the-Art Internet Storefronts With Minimum Custom
Development
Until today, merchants have had to resort to expensive custom
development to create sophisticated Internet commerce sites. With
Microsoft Merchant System, merchants can build innovative storefronts
using "starter" stores along with advanced Web technologies such as
ActiveX? Controls and Java. As part of the Microsoft Merchant System
software package, Microsoft will provide sample store configurations
that can also be easily adapted to meet a merchant's specific needs.
Microsoft Merchant System offers companies improved cost advantages by
allowing them to take full advantage of their current information
technology investments. Merchants can use their existing databases
based on Microsoft Merchant System's unique database schema. Easy
product database management allows merchants to post product data online
quickly, including support for multiple product attributes, without
requiring advanced programming skills. Merchants can also integrate
Internet orders with their existing order-management system, securely
accept and route credit-card payments, and provide tax, shipping and
handling calculations.
"We were thrilled when we heard about Microsoft's plans to implement
eShop's technologies as part of a comprehensive Internet commerce
solution," said Chris McCann, vice president of 1-800-FLOWERS.
"Finally, companies can create powerful online retail solutions without
having either to break the bank on expensive custom solutions or become
experts in proprietary technology. Being the pre-eminent brand in the
retail floral industry, we are very pleased at this opportunity to
improve our service to online customers and implement a more strategic
approach to managing online commerce."

Providing a Robust, Secure and Scaleable Solution for Internet Selling
The Microsoft Merchant System provides scalability for high-volume
selling, industrial-strength security based on open industry standards,
and robust performance on the Windows NT? operating system.
For the single merchant as well as the Internet mall provider, Microsoft
Merchant System facilitates high-volume selling in both transaction
volume and the number of SKUs supported. Companies can flexibly
configure their Merchant System over single or multiple servers and over
single or multiple machines, optimizing their hardware investment and
simplifying systems management without compromising security. Based on
industry security standards, Microsoft Merchant System offers built-in
support for the Secure Sockets Layer (SSL) protocol and optional support
for the Secure Electronic Transaction (SET) credit-card encryption
protocol, enabling merchants and customers to shop easily and safely.
"Since the day we launched our Sympatico Internet service, our customers
have demonstrated strong demand for an Internet commerce solution," said
Bruce Okabe, assistant vice president of strategic business development,
BC TEL Interactive. "We believe that Microsoft's solutions will allow
us to meet the needs of these customers as well as the many new
customers who are joining our service every day. We've been looking for
a cost-effective, flexible Internet merchandising solution that is easy
to deploy and isn't based on a proprietary approach. Microsoft Merchant
System will help us extend our business into the fast-paced, high-demand
world of Internet commerce."

Providing the Best Customer and Merchandising Experience
To produce the best customer experience and promotion-based
merchandising, Microsoft Merchant System will enable consistent and easy
shopping on any secure Web browser. Upcoming implementations of ActiveX
Controls, such as client-side wallet and payment controls, will further
improve the Internet shopping experience. Built-in product search
support allows customers to find products they want easily. Combining
detailed user and order tracking with targeted discount promotions
empowers merchants to conduct dynamic, promotion-based merchandising
that can better encourage customers to purchase.

Open Support for Building Commerce Infrastructure
Microsoft also announced it will openly publish interfaces so that
solution providers, independent software vendors and other third parties
can build merchandising applications and solutions on Microsoft
software. The company is working with several third parties to
accelerate the building of an electronic commerce infrastructure,
including payment processing companies and technology companies involved
in taxes, shipping and site development.

Industry Embraces Microsoft Merchant
In addition to strong interest shown by the more than 175 companies
attending today's Merchant System beta workshop, industry innovators
applauded the introduction of the powerful cost-effective Internet
commerce solution. "Microsoft Merchant System will be incredibly
valuable to merchants who want to start selling on the Internet," said
Terry Lake, director of advanced technologies at NCR Corp. "NCR has
been a leader in delivering proven information technology solutions to
retailers, and we're excited to be working with Microsoft in their
Internet commerce solutions. Microsoft Merchant System will complement
the evolving services that NCR provides to merchants for a
comprehensive, industrial-strength solution for Internet merchandising."
Founded in 1975, Microsoft (NASDAQ "MSFT") is the worldwide leader in
software for personal computers. The company offers a wide range of
products and services for business and personal use, each designed with
the mission of making it easier and more enjoyable for people to take
advantage of the full power of personal computing every day.
#########
Microsoft, Windows NT and ActiveX are either registered trademarks or
trademarks of Microsoft Corp. in the United States and/or other
countries.
VeriFone is a registered trademark and vPOS is a trademark of VeriFone
Inc.

For more information, press only:
Sean Gutman, MacKenzie Kesselring, (503) 225-0725, seang@mkinc.com
For online information:
For more information about Microsoft Merchant System, visit
http://microsoft.com /ecommerce.

Note to Editors: If you are interested in viewing additional
information on Microsoft, please visit the Microsoft Web page at
http://www.microsoft.com/corpinfo/ on Microsoft's corporate information
pages.

Thanks,
Doyoung Rhee
(02) 531-4628 , dyrhee@microsoft.com