ONE MORE NAIL IN AOL'S COFFIN
Right now, no company is easier to pick on than AOL. These folks are so down and out right now that the company they acquired a couple of years ago (Time Warner) is rumored to be looking to spin them off. Of course, a spin off doesn't spell doom for a company by any means. But senseless business decisions do.

And AOL just announced a doozie: Enterprise IM.

I know they probably spent a lot of resources determining if there's a business case for this. But it seems like a plain ol' bonehead idea to us, and a sure sign that there's desperation to find a profitable market roaming them thar hills.

First of all, AOL--and specifically instant messaging--is a consumer tool. Its primary marketplace is non-net-literate people. Kids wanting to talk about Britney and Justin. Remote family members looking to say hi. Not people working within a business enterprise. Can you imagine that group going through even a modified version of selecting screen names and popping into each other's workday with little messages? I mean: which Buddy Icon do you think the CEO of GE is going to pick?

And, really, if it is intended to facilitate "virtual hallway conversations" (as their web page says), and at the same time it restricts content, monitors messaging, and archives everything . . . there's not going to be much going on in those hallways is there--you don't improve business process by eavesdropping and supervising candid thoughts

The need for AOL to open new markets is critical. People's understanding of the net grows more sophisticated every day--which means AOL's key benefit of making things simple is losing luster. Internet access is moving away from clunky web surfing and is becoming a more integrated element of daily activity (paralleling the early 20th century evolution of the automobile from a technology to a commodity). As this happens, the value of an AOL becomes less and less. If they are to survive, it will not be as a window to the web.

But instant messaging for the enterprise?

We don't think so.

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