Long criticized for creating software that doesn’t work with non-Microsoft products, the Redmond giant said Wednesday it will create a special council staffed with some 30 customers to advise the company on how it can build more interoperability into its products.

The group, known as the Interoperability Customer Executive Council, will identify areas for improvement across Microsoft products and the overall software industry.

“The council will help us prioritize areas where we can achieve greater interoperability through product design, collaboration agreements with other companies, standards, and effective licensing of our intellectual property,” said Bob Muglia, senior vice president of Microsoft’s servers and tools business.

The council hosted by Mr. Muglia will meet twice a year in Redmond. The group will have direct contact with Microsoft executives and product teams.

Among the Microsoft customers expected to be part of the council are LexisNexis, Kohl’s Department Stores, and the states of Wisconsin and Delaware. Microsoft has similar customer councils for other product groups, like security.

The Holy Grail

With customers working in increasingly heterogeneous IT environments, interoperability is a huge concern among IT managers. It’s one reason why many businesses standardize on older Microsoft technology and continue to use it even if alternatives are available, said Joe Wilcox, an analyst with JupiterResearch.

“The council is a good first step to making the company’s products better corporate citizens,” Mr. Wilcox wrote in a research note. “Microsoft may be better at understanding that, for many IT managers, technology interoperability is the Holy Grail.”

This is not the first time Microsoft has talked about the issue of interoperability. In February, Microsoft Chairman Bill Gates wrote an open letter introducing the concept of “interoperable by design.”

The idea was to expand the use of a programming language called XML (Extensible Markup Language) that would work with existing applications and products.

Most of Microsoft’s products are based on proprietary technologies like Windows and .NET, but the company said it is making more investments in interoperability. The company cited examples of technical collaboration agreements with firms like SAP, Hyperion, and SugarCRM.

Microsoft has been under pressure from the European Commission to make it easier for third-party developers to create software that can interoperate with Windows (see Microsoft: The EC Hobbled Us).

Microsoft is also supporting interoperability in areas like web services, financial and business transactions, and web content, the company said.

Contact the writer: PGanapati@RedHerring.com