[FRIDAY] The new Microsoft iLoo...what will those Limies think of next?

[Mark Galbreath <ma...@qat.com>]

It seems Microsoft (Nasdaq: MSFT)  cannot flush away the iLoo controversy.
After a press release from MSN UK announced the launch of an
Internet-enabled portable toilet to debut in Britain this summer, Microsoft
reversed itself and said the announcement was a hoax. Now the software giant
has reversed itself again, explaining that the so-called "iLoo" was indeed a
real project planned by its British MSN online service. But after the idea
was met with howls of derision, the company decided to scuttle it. "The MSN
iLoo was not false or a hoax," reads a statement from MSN UK. "It follows a
UK strategy to bring the Internet to as many people in Britain as possible
and encourage debate about how the Internet can affect our lives now and in
the future." The sober tone of the official explanation so far has failed to
stem the tide of ridicule from Microsoft critics -- or quell the potty humor
in the industry press. "I have a feeling the [MSN] guys in England are being
roasted over a slow fire," Aberdeen Group analyst Russ Craig told
NewsFactor.

Wi-Fi Porta-Potty
The iLoo might have been a success, for it surely created interest when it
was announced in early May. MSN UK's original plan was to test the iLoo at
Britain's summer music festivals. The iLoo was to be built with a high-speed
Wi-Fi  connection, a wireless keyboard, and an adjustable flat-panel display
at an appropriate height for seated browsers. The novel contraption was was
part of a plan to advertise the MSN Internet service -- so far not a
moneymaker -- in unlikely venues. Related MSN promotional pushes highlighted
Net access on beach lounges in France and park benches in London. "They're
really working very hard on the concept of having people connected
everyplace. This is just an instance where perhaps they got a little bit
ahead of where the market is willing to go," Forrester analyst Rob Enderle
told NewsFactor.

Confusion Ensues
Although the iLoo project created a lot of publicity -- reported by
publications ranging from The Wall Street Journal to the Associated Press --
coverage was decidedly mixed. The Seattle Post-Intelligencer, for example,
wondered whether sharing a keyboard in a public toilet would be hygienic.
"It got out before anyone thought it through completely," Yankee Group
analyst Adi Kishore told NewsFactor. "I can't imagine it would be terribly
successful as a product." After hearing the first round of jeers, Microsoft
announced that the iLoo had been an April Fool's Day joke. But that appeared
unlikely, because the original announcement came out May 2nd, and there was
a press release on the MSN UK site. Microsoft has no history of fictional
press releases.

Official Denials
After continued confusion, Microsoft admitted that the iLoo was once a real
plan but was now canceled. "From a PR standpoint, they certainly didn't
manage this very well," Kishore said. Microsoft is "issuing official denials
that they're not in the wireless toilet business," Craig said, with a laugh.
According to the MSN UK press release, this was "a story about a UK market
initiative and naturally was aimed at British culture and humour ... It was
always meant to be a one-off pilot, not a major manufacturing project. "The
attention the story generated has made us sure that the concept is valid,
however there was some misunderstanding about the context of the initiative
along the way, and therefore it will not be built." Kishore noted that
"anything Microsoft does is news -- now they've proven it." Microsoft
representatives were not immediately available for comment.



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