AOL drops enterprise IM

Follows Yahoo! out of the market...

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By Matt Hines, 22 June 2004 08:25

NEWS AOL will no longer offer its flagship instant-messenger software for businesses, as the so-called enterprise IM segment appears better suited to more established applications vendors.

The announcement that AOL is ditching its AIM Enterprise Gateway package comes only days after Yahoo!, one of AOL's closest competitors, said it was pulling the plug on its own enterprise IM software. AOL said it will transfer existing users of its applications to a similar program offered and maintained by IMLogic, which previously designed and supported features of the internet service provider's enterprise IM.

AOL's move out of enterprise IM underscores the lack of success the company, and its rivals, achieved in luring businesses to pay for software that many workers were already using for free. Available for monthly or annual fees, the enterprise tools typically included features not available in gratis IM software, such as conversation logging, authentication and identity management. AOL representatives declined to comment just how many companies or end users are currently using AIM Enterprise Gateway.

In defending its decision to terminate the product line, AOL officials pointed to an "evolution" in the market for business IM and said they will instead follow a strategy of marketing to existing end users who log on to their accounts while at work. AOL said it would also continue to partner with companies such as IMLogic to offer business tools via IM.

Matt Hines writes for News.com

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