Microsoft and Google

Reaction has been across the board to the New York Times story on Microsoft's apparent desire to take over or partner with Google. The Motley Fool investment site says such a deal would make sense, especially for Microsoft. San Jose Mercury News columnist Dan Gillmor says it would be "a terrible match."

For some context on how the MSN and Google search efforts compare, see this story from CNet News.com in June.

An entry on Slashdot puts today's news under the "is-anyone-really-surprised dept." It also points out that Google runs on Linux server software, not Microsoft's competing Windows platform. Along those lines, Microsoft über-blogger Robert Scoble once mentioned in a post that he was asked during his Microsoft job interview what he would do to convince Google to move to the Windows platform. His initial, flip answer: "Acquire them."

Marketing to developers

La Bella Cucina, a restaurant across from the L.A. Convention Center, got creative in its effort to lure attendees of Microsoft's Professional Developers Conference -- scanning the conference logo into a graphics program, changing the motto from "Let's Code" to "Let's Eat," and posting a bunch of the modified signs in its windows. But the owner told me it didn't work very well. Apparently there was just too much food at the event.

Final day of PDC

Microsoft's Professional Developers Conference in Los Angeles winds down today with, among other things, a security symposium that includes an afternoon panel with experts including Howard Schmidt. As you may know, Schmidt was the Microsoft's chief security officer before leaving the company to work in the Bush administration, ultimately as chair of the President’s Critical Infrastructure Protection Board. He has since left to work for eBay. Others scheduled to be on the panel include Chris Wysopal of @stake and Jason Garms and James Hamilton of Microsoft.

Visualizing Longhorn

I just had a chance to glance at Paul Thurrott's SuperSite for Windows for the first time since the Professional Developers Conference began, and sheesh, it's a regular Longhorn multimedia extravaganza over there. Audio, video, photos, and even Longhorn screenshots from the PDC -- which are rare because of the way the company sought to control photography during the Monday presentations by Bill Gates and Jim Allchin. Worth checking out if you're interested in seeing the visuals, although keep in mind that the company says the graphics are far from final.

More on Longhorn and Mac

Jupiter Research analyst Joe Wilcox has a unique perspective on the Longhorn vs. Mac OS X comparison -- not only because he's knowledgeable and well-versed in both platforms, but also because he's using Panther, the latest version of OS X, on the shiny Mac PowerBook laptop he's toting bravely around the Microsoft conference.

I tried to reflect his basic feelings toward the bottom of this story in this morning's P-I, but for a much more in-depth analysis of the two operating systems, see this post by Wilcox on the Jupiter Research Microsoft Monitor weblog. Here's a relevant excerpt:

I expected to see more new things from the software, or Longhorn build 4051. Most surprisingly: How little that has changed since the last leak, build 4029. From that observation, I takeaway that Microsoft’s progress on the OS is limited to core components. That’s not necessarily a bad thing. Right now, Microsoft’s main concern should be new, core technologies developers need to get the most acquainted with. Ideally, the user interface that sits on top of the core OS would come much later in the development process.

Still, I got the double déjà vu today. Many of the interface demonstrations, such as using virtual folders that short cut to different kinds of data or using a common database of contacts, were seen in earlier builds. Still, these demonstrated features showcased how Microsoft is trying to move away from the traditional hierarchal folder view. The Longhorn sidebar was there, too, complete with its longstanding clock and rotating slideshow. The sidebar supports RSS feeds, by the way. Kudos to Microsoft for that, which, by the way, demonstrates the extensibility of Longhorn’s XML support.

The features I hadn’t seen in these earlier, leaked Longhorn builds, I swear I’ve seen in Mac OS. Some examples: Translucent windows; resizing Windows that keep the integrity and quality of playing or streaming video, graphics subsystem making more use of the graphics processor; search lists that change in real time as the user inputs the text string; common address book that is available to all applications; among a few other features.

Now, I’m not trying to diss Microsoft. Companies borrow good ideas all the time. Apple does it, too. Mac OS X 10.3, or Panther, adds fast-user switching, which debuted first in Windows XP. Apple Mail now blocks external gifs, something Microsoft brought out earlier with Outlook 2003.

Deeper down, Longhorn’s guts show lots of promise and should give Microsoft’s developers a good start preparing for the operating system. ...

Batman uses a Pocket PC

Linux has the Penguin, and Microsoft has ... Batman? That's Kevin Lisota, product manager in the company's mobile devices divison, eschewing the traditional Microsoft oxford shirt and khakis for the superhero look. He was on the stage at PDC to demonstrate all the mobile devices in his "bat belt" for which developers could write applications. With him is Eric Rudder, senior vice president of servers and tools.

Longhorn vs. OS X

In the P-I story Monday previewing yesterday's Longhorn announcement, we mentioned that the next Windows would inevitably be compared to Mac's OS X. Already those comparisons have started. This morning I received an e-mail from a Seattle reader, Neal Colingham, who recently upgraded to Apple's new version of OS X, named Panther, from the previous version, Jaguar. From what he can tell, he wrote, OS X has today essentially what Microsoft plans to bring to market as many as three years from now:

"I am running Panther as we speak, it is light years better (than) Jaguar and I shudder to think what Apple will develop in the next year or two, remember Panther is optimized for dual processors and 64 bit addressing."

I'll try to get representatives from Microsoft and Apple to compare Longhorn and Panther specifics, and I'll keep you posted. Others who have taken up this issue include Microsoft Watch in articles here and here, and, in response to the Microsoft Watch stories, the Mac News Network, in a posting here.

More on Longhorn

For more information on Longhorn, the next generation of Windows, you might want to check out the information the company is giving professional software developers in the online Longhorn Developer Center.

Antitrust settlements

Some non-PDC news today from Microsoft: the settlement of consumer class-action suits in five states and Washington, D.C. See the Associated Press story and a page on the company Web site outlining what's left on the antitrust front.

Better PDC photos

The P-I's assistant business editor informs me that my PDC photos posted yesterday illustrate perfectly why reporters aren't allowed to take pictures for the newspaper. I think he may have a point. At any rate, see this PDC moblog for some better photos of the event.

A moblog, to my understanding, is a collection of photos taken with camera-equipped mobile phones or regular digital cameras and posted remotely, or on the move -- as in mobile weblog. A number of PDC attendees appear to be contributing to the moblog above.

Today's Longhorn news

The press rooms here were packed today, and a quick Google News search shows the result. Also see our story in the P-I Tuesday morning. If you're feeling up for it, you can also read the full transcripts of Jim Allchin's and Bill Gates' presentations.

Dealing with nature

The wildfires in Southern California delayed and cancelled many flights into the Los Angeles area yesterday, just as many people were trying to get here for the conference. Microsoft decided to proceed with the schedule as planned, although it told attendees that it would videotape the Bill Gates and Jim Allchin presentations this morning for anyone who didn't arrive in time to see them. For what it's worth, the main hall looked pretty full to me regardless.

Developers, developers, developers, developers

The opening session at the PDC this morning included a funny animation in which the characters from the blockbuster Halo video game for the Microsoft Xbox made various references to the company and the conference. One of the characters recounted his stint as CEO Steve Ballmer's speechwriter, which ended after he tried unsuccessfully to get Ballmer to say the word "developers" 37 times, rather than 35, as he did in this appearance at a previous conference. (They actually played this video during the segment this morning.)

Later, during Microsoft executive Jim Allchin's presentation, one of the employees on stage with him referred back to Ballmer's famous scene. Here's an excerpt from the official transcript:

CHRIS ANDERSON: Jim, before we move onto the next part, I don't know if you watched that video with the Halo stuff, with the red and blue and all that, one of the challenges of PDC is to get a vice president, even better a Group Vice President, such as yourself, to say developer 37 times. Would you please say developer 37 times? (Laughter.)

JIM ALLCHIN: Developer 37 times.

For the record, Ballmer isn't scheduled to appear here this year. I've asked why but haven't yet received an answer.

The view from inside

There was literally a rush for seats when the doors opened
this morning for Bill Gates' keynote. "Like a rock concert for geeks,"
said one developer I was talking with.




The view from the press row. You can't tell, but that's Bill Gates, I swear.

Longhorn and security

Posting from Los Angeles ... On the flight from Seattle I caught up on some magazine reading, including an interesting package in PC Magazine that asked the question, where is Windows going? You can read the online version here. It set the stage nicely for Microsoft's Professional Developers Conference here this week, where the company is expected to talk in detail about the next version of Windows, code-named Longhorn. (Also look for our story this morning explaining Longhorn's potential significance.)

The PC Magazine package included a sidebar outlining what the magazine's readers say they want in a future operating system. A major theme, as you might suspect, was security:

One clear verdict: If Longhorn isn't ready in 2005, readers say, don't release it. Many readers would prefer an OS solid enough not to require a service pack months after its initial release. Security is a big factor; one reader suggested giving the OS to an independent organization to hack-test before release. Many readers stressed that expecting an organization to keep all its machines up to date with weekly patches is simply unrealistic.

This is what Susan Koehler, Microsoft senior trustworthy computing strategist, told me on this subject in an interview earlier this month for an article on changes in the company's patching strategy:

"When you look at Longhorn in the future, that will be our first operating system with every line of code written, brand new, all done based on trustworthy computing. People will have sat around the table on security, reliability, privacy, from day one, before a line of code was written, re-architecting what is the best and most secure way we can write this."

The subject of security will be addressed at PDC in a variety of ways, including a half-day security symposium on Thursday.

Posting from PDC

I'll be in Los Angeles next week filing stories for the P-I from Microsoft's Professional Developers Conference, where the company is expected, among other things, to reveal new details about Longhorn, the next version of the Windows operating system. I'm planning to post to this weblog, as well, so be sure to check back throughout the week.

In the meantime, for additional material about the conference, check out the independent PDC bloggers site, a collection of posts related to the event. Should be an interesting site to watch as the week unfolds. Other journalists covering the event include Paul Thurrott, news editor of Windows and .Net Magazine, and Mary Jo Foley, who maintains the Microsoft Watch page. Also see the virtual PDC newsroom on Microsoft's Web site.

MSN reaches profitability

Microsoft's MSN division has posted its first quarterly profit, the company's senior director of investor relations, Curt Anderson, said in an interview this afternoon.

The company won't say precisely how much the MSN division earned in the first fiscal quarter until it submits its 10Q filing to the Securities and Exchange Commission in the coming weeks. Microsoft is expected to discuss the development in more detail as part of a conference call this afternoon with analysts about Microsoft's first-quarter earnings. Four of Microsoft's seven divisions, including MSN, have been unprofitable in the past.

On a companywide basis, Microsoft today reported revenue of $8.22 billion for the quarter, compared with $7.75 billion in the same quarter last year. Net income was 24 cents a share, compared with 19 cents per share in the same quarter last year. Both net income figures were adjusted to count stock-based compensation as an expense, as part of the company's shift from granting employees stock options to awarding actual shares of stock.

Ballmer on Outlook '03

The question of the day as Microsoft unveils the new version of Office: why upgrade? Microsoft CEO Steve Ballmer kept it simple when he was asked the question during an appearance today at the Gartner Symposium in Orlando, Fla. Here's what he said:

"Individuals I think are going to want to upgrade for, if nothing else, if you're not running the new Outlook you'll want to run the new Outlook; I guarantee it. That in and of itself for most end users will justify the upgrade cost."

Improvements to Outlook, Microsoft's popular e-mail application, include a better junk-mail filter and a redesigned interface that, among other things, makes it easier to read long e-mails. Ballmer touched on a wide variety of additional issues during the appearance, including a reference to a possible acquisition. Click here for the full transcript.

Microsoft and Dilbert

Microsoft may be well regarded among working mothers, but apparently it has some work to do among readers of Dilbert. They voted Microsoft the "weaseliest company" yesterday in the second annual "Weasel Poll" on the comic strip's Web site. Dilbert creator Scott Adams defines weasels as people and companies that operate in the "gray area between good moral behavior and outright felonious activities." Halliburton, Vice President Dick Cheney's former company, was a distant second. See also the Editor & Publisher story on the poll.

More on Office '03

Newspapers around the country are weighing in on Microsoft Office 2003 in advance of the scheduled launch tomorrow. See our take in the P-I this morning, as well as these selected stories and reviews from other papers:

• USA Today: "Microsoft upgrades strategy"

• San Jose Mercury News "New outlook on Microsoft Office"

• Rocky Mountain News: "Bit of overkill in Office 2003" .

• Denver Post: "Will PC users give at the Office?"

• Washington Post: "Despite a New Outlook, Office 2003 Offers Little Reason to Upgrade"

• USA Today review: "Microsoft Office 2003: It's a pretty suite upgrade"

• Globe and Mail: "Microsoft gets new Office up and running"

• Toledo Blade: "The machine Office is Open, and inexpensive" (Story about alternatives to MS Office.)

iTunes for Windows

Apple Computer ventured into enemy territory today by launching its iTunes program and iTunes Music Store for Microsoft's Windows operating system. The significance of this clearly wasn't lost on Apple, which topped its Web site with the headline, "Hell Froze Over," calling iTunes "the best Windows app ever." Steve Jobs touched on the first of those themes during today's launch event for the service, as detailed in this San Jose Mercury News story.

In case you were wondering, Microsoft isn't exactly putting out the welcome mat for the iTunes service. Dave Fester, GM of Microsoft's Windows Digital Media Division, was asked about the iTunes Music Store for Windows in a Q&A posted on the Microsoft Press Pass site. Here's what he said:

iTunes captured some early media interest with their store on the Mac, but I think the Windows platform will be a significant challenge for them. Unless Apple decides to make radical changes to their service model, a Windows-based version of iTunes will still remain a closed system, where iPod owners cannot access content from other services. Additionally, users of iTunes are limited to music from Apple's Music Store. As I mentioned earlier, this is a drawback for Windows users, who expect choice in music services, choice in devices, and choice in music from a wide-variety of music services to burn to a CD or put on a portable device. Lastly, if you use Apple's music store along with iTunes, you don't have the ability of using the over 40 different Windows Media-compatible portable music devices. When I'm paying for music, I want to know that I have choices today and in the future.

The NY Times 'weblog'

New York Times technology reporter John Markoff, a longtime follower of Microsoft and other companies, discusses topics ranging from video games to instant messaging in this interview with the USC Annenberg Online Journalism Review. He also talks about weblogs and comments that when people ask him when he's going to start his own blog, he likes to say, "Oh, I already have a blog, it's www.nytimes.com, don't you read it?" (Link via Romenesko's Media News).

Longhorn guessing game

The release date of the next version of Microsoft Windows, code-named Longhorn, has been the subject of almost comical speculation on various news sites and weblogs, with journalists and enthusiasts going to great lengths to derive meaning from vague statements by company executives. The latest wave of this came last week, when executives at the company's Worldwide Partner Conference in New Orleans mentioned that the Longhorn release was about three years away. Alert listeners quickly did the math and realized that three years would put the release further out than 2005, the year suggested by an executive during a Microsoft conference in May.

That prompted such items as "Longhorn pushed back to 2006," and "It's Official: No Longhorn Until 2006."

The truth? The Register, an online tech publication based in the United Kingdom, today quotes Bill Gates saying that Microsoft doesn't really know whether it will be 2005 or 2006.

"Longhorn could be 2005 or 2006," Gates told a small group of journalists yesterday at the TechNet/MSDN seminar in The Hague. "This release is going to be driven by technology, not by a release date. Which probably means it is going to be late."

Microsoft CEO Steve Ballmer offered a similar message in an e-mail in June to the company's employees. Here's an excerpt:

Longhorn is our big bet on galvanizing the next big breakthrough – even bigger, perhaps, than the first generation Windows release. Virtually everything we’re doing from a product standpoint will accrue to the Longhorn wave. In addition to the Longhorn client, there will be a Longhorn version of Office, Longhorn server enhancements, Longhorn development tools, and a Longhorn version of MSN. And that’s just what Microsoft will deliver. With partners we will support a broad Longhorn wave of third-party applications that will make the platform a generation ahead of competitive products.

People have asked me: if competing with Linux is so important, can the company wait as long as it will take to get Longhorn done? My answer is twofold. First, the Windows Server 2003 generation of products offers stronger performance and value than Linux in most IT scenarios. Second, while we are not taking a relaxed approach to Longhorn, we will do the work and take the time required to get it right, because it truly is the next quantum leap in computing, which will put us years ahead of any other product on the market.

Raikes in spotlight

A story in the latest issue of Forbes magazine profiles Jeff Raikes, the No. 3 Microsoft executive. Raikes oversees areas including Microsoft Office, the latest version of which will be formally launched next week.

Among the anecdotes in the story:

Earlier this year, when a retreat for a hundred Microsoft managers turned into a giddy pep rally for the much-anticipated Longhorn, a dramatic Windows overhaul set for 2005 or later, Raikes played the spoiler. "I think this is going terribly," he bluntly announced, silencing even the boisterous Ballmer. Raikes worried that the project, run by his counterpart James Allchin and already delayed once, was meandering out of control. Raikes rattled off trouble spots, exposed inconsistencies among engineering groups, demanded responses and said what others had kept to themselves. "It was hard to believe what people were saying was true," Raikes says.

Employee blogger back

In a post last week I mentioned several Microsoft weblogs that I read frequently, including one by Diane R., an employee with a unique perspective, having worked previously for Nordstrom. At the time, she hadn't posted in a couple months, but she's since restarted, at the encouragement of another Microsoft employee blogger, John Porcaro. Here's a link to the latest posts on her blog. Worth checking out. One thing I like about these employee blogs is the subtle insights they provide into the company's culture, at least as perceived and portrayed by the people who work there every day.

Windows, Napster and iPod

The relaunched Napster service is distributing music files in Microsoft's Windows Media 9 format, which means files half the size of traditional MP3s, according to this company press release. It also means that none of the files can be played on Apple Computer's popular iPod portable music player, as Wired News notes in this informative story, predicting that the situation "may confuse customers and could detract from the success of the new (Napster) service." (Link via Gizmodo.)

See also Mac Observer's take on the issue, including reader comments toward the bottom. On a related note, CNet News.com is reporting more evidence that Apple next week will launch its iTunes Music Store for Windows, competing with Napster 2.0. The iTunes Music Store has until now been available only to Mac users. Apple previously made the iPod compatible with both Windows and Mac machines.

Fixing security or PR?

The (San Jose) Mercury News' take on Microsoft's new security initiatives, by Kristi Heim, includes a notable quote from a certain security expert whose past comments have been both applauded and criticized by readers of this blog:

"Right now, it's only a series of words,'' said Bruce Schneier, founder and chief technology officer of Counterpane Internet Security. "Microsoft has a short-term PR problem they are going to fix by having an important guy make a speech,'' he said. "But a speech will never secure a computer.''

Computers as pastry

In the discussion about computer viruses and software flaws, we've heard operating systems compared with everything from car tires to deadbolts. Yesterday, for this story, I spoke with John Pescatore, vice president for Internet security at Gartner, and in our discussion he offered up a new one in explaining the need for enhanced firewalls and other protections:

"If we can have a crunchier exterior on Windows, so that even if the inside’s mushy, hackers can’t get at it, it could be a huge step forward."

Maybe one of Microsoft's marketing teams will pick up on this. Aside from it being a good way to explain the situation, there has to be a Windows/Krispy Kreme joint promotion in there somewhere.

Microsoft security plan

Microsoft, under increased pressure to do something to protect computer users from viruses that exploit software flaws, introduced several new security initiatives today. Among other things, the company said it plans to improve firewall protections and release non-critical software patches on a set monthly schedule, to improve predictability for users and IT departments.

CEO Steve Ballmer outlined the changes during a gathering of the company's business partners. His comments included a response to people who say the best way to deal with Microsoft's security problems is to avoid its software:

A lot of you will hear the argument that says the best thing I can do for security is just walk away from Microsoft, the other systems are more secure, a mono culture is bad for security, a big argument that's been in the press recently.

All of that is hogwash. Anybody want to guess how many security vulnerabilities there were in Red Hat 9 in its first 150 days? Just go to their Web site. Any guesses? Forty-three, 43.

And believe me, unless we're going to evolve to a world in which there's in which there's hundreds of incompatible operating systems. If there's one, if there's two, if there's three, there are still going to be hackers that go after those 43 vulnerabilities, or these four vulnerabilities. I think, competitively... we're actually in good shape even if we don't meet today the standards that customers want to see. There's no other port in this security storm that's safer than this port, and you need to know that and you need to be able to articulate that to your customers.

See the full transcript of his speech here. (He gets into the security discussion toward the middle, after the reference to the video segment.) Also see the Associated Press story.

Microsoft's market share

A report issued today by research firm IDC predicts that Microsoft "will hold its position in the worldwide operating [system] market through 2007, despite continued competition from Linux."

The report says Microsoft's share of the market for server operating systems rose from 50.5 percent in 2001 to 55.1 percent in 2002. According to the report, the company also built upon its dominant position in the market for desktop computer operating systems, growing its share in that sector from 93.2 percent to 93.8 percent over the same time period.

See stories by the Associated Press, IDG News Service, and CNet News.com. Also see the IDC press release about the study.

NY Times on liability

A story in The New York Times today put the consumer lawsuit filed against Microsoft last week into a broader context, saying it's not clear whether the software industry can forever remain "beyond the reach of product liability." Click here for the NYT story (free registration required). Click here for the full text of the Hamilton v. Microsoft complaint. (Also, if you haven't seen our previous story on the issue, you can read it here.)

Microsoft declined to comment on the specifics of the complaint but issued a statement saying that it would contest both the suit and the proposed class-action certification. The statement continued:

Microsoft has made security a top priority and is committed to developing the most secure software possible and making it easier for customers to protect themselves against attacks launched by malicious law breakers. For example, we have recently released streamlined, user-friendly processes through our Protect Your PC campaign to alert users to possible vulnerabilities and steps they can take to protect themselves.

This complaint misses the point.  The problems caused by viruses and other security attacks are the result of criminal acts by the people who write viruses.  While working hard to improve the security of our software, Microsoft also works closely with federal and state law enforcement to help bring the perpetrators of these attacks to justice. 

Gates' billions, over time

The online version of Forbes magazine's latest ranking of the richest Americans included an interesting interactive graphic tracking Bill Gates' net worth over the years, in the context of personal and professional milestones. See also this page for the full Forbes list and other features.

Whither the superhighway?

I went back and reread Bill Gates' "The Road Ahead" recently, and one of the things that stood out was its use of phrases popular in 1995, when it was published. One sprinkled throughout the book was "information highway," a variant of which was the "information superhighway." Remember them? Both served as popular metaphors for the Internet, back when a lot of people had a hard time wrapping their minds around the concept.

That got me to thinking: what ever happened to the information superhighway? Not the thing for which it's a metaphor, of course, but the phrase itself. Not that I'm complaining, but nobody ever seems to use that term anymore.

To see if this perception was accurate, I did a quick search for the phrases "information superhighway" and "information highway" on Factiva.com, a subscription-based database of news from newspapers, magazines, broadcast transcripts, and other sources. And, in fact, the number of articles, press releases, etc., containing those phrases has dropped dramatically since peaking in 1994, as this tally indicates.

• 1993: 3,994
  
• 1994: 24,023
  
• 1995: 17,731
  
• 1996: 10,037
  
• 1997: 6,827
  
• 1998: 5,142
  
• 1999: 5,320
  
• 2000: 5,171
  
• 2001: 2,745
  
• 2002: 1,984
  

Of course, this could be skewed by a number of factors, including the types and number of news sources in the Factiva database. But what about a term that's risen in popularity in recent years? Just for fun, I searched for the word Google. Here was the result, a steady increase since Google's introduction:

• 1998: 122
  
• 1999: 585
  
• 2000: 2,267
  
• 2001: 4,108
  
• 2002: 7,867
  

OK, so if this exercise is some indication of a word or phrase's ranking in the public consciousness, a reflection of its place in the zeitgeist, how does Microsoft fare under the same scrutiny? I searched for its name, and, as you can see below, the word Microsoft is mentioned in a much higher volume of articles than Google is, but in fewer stories in the past two years than it was in the past.

• 1995: 77,315
  
• 1996: 96,259
  
• 1997: 132,099
  
• 1998: 163,689
  
• 1999: 187,545
  
• 2000: 198,056
  
• 2001: 165,512
  
• 2002: 166,936
  

Sure, the significance of this exercise is highly suspect. Among other things, the trend is no doubt a reflection, at least in part, of all the media hype surrounding the tech boom that extended into 2000. Even so, it's interesting to note the decline. I'll try to remember to do the search again after the full year 2003 just to see where the trend goes, and I'll let you know how it turns out.