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Ms Implements Settlement, Opens Some APIs: Nearly eight months after Microsoft settled the antitrust lawsuit filed against it by the US Department of Justice, everybody's favorite reformed monopolist began implementing changes required by the agreement. Since the settlement is technically not official until an appeal filed by nine independent state governments is over, Microsoft is enacting its part of the deal prematurely - perhaps hoping to impress the presiding judge. The first new change is "middleware control" software that allows end users to choose what software applications will serve as the default for handling specific tasks like browsing the Web or sending e-mail. (Nice, but four years too late for Netscape.) The new software is included with Windows 2000 Service Pack 3 [see story below] and will also be part of first Windows XP update, whenever it sees the light of day. The rest of Microsoft's concessions involve intellectual property, primarily the programming interfaces inside Windows that give their software a leg up on competing products. On August 28, 272 currently secret middleware APIs (there are thousands) will be posted on the Microsoft Developer Network Web site, giving anyone who pays Ms developer fees a right to use them. 113 communications protocols hidden inside Microsoft servers have also been opened up, but those are only available to larger partners willing to pay licensing fees and sign a nondisclosure agreement. One small step in the right direction, followed by two symbolic actions that will do nothing except generate good PR and look good to the judge. Microsoft moves to comply with DOJ settlement deal Microsoft tallies antitrust efforts Microsoft exposes more Windows code Microsoft clouds API waters With Pardon Secure, Microsoft Puts Squeeze on OEMs: With the antitrust lawsuit over and settlement concessions being put into place, Microsoft is getting back to business as usual in a real hurry. Late last week Dell sent an e-mail to all its regular customers, advising them to purchase any computers with the "NO OS" package (ie, a clean machine with no software) before August 26 because the PC assembler's new contract with Microsoft goes into effect on September 1st. That new contract, vital to Dell's survival as a Microsoft fellating hardware company, apparently forbids selling computer systems without an OS preinstalled to "prevent piracy." Most damning of all, the e-mail concludes by saying this new arrangement also affects all of Dell's competitors, proving Microsoft is turning the screws on everyone who sells desktop computers without Windows. Due to some earlier arrangement with Microsoft, the nation's top PC seller is apparently prevented from offering Linux to any customers who buy fewer than 100 systems - so the new contract basically prevents consumers from purchasing any Dell desktop that doesn't run XP. Or does it? According to news being released just as we were preparing to send this update, Dell now plans to introduce a line of computers later this month that come without an installed OS, but still fulfill the Microsoft contracts by having a disk loaded with FreeDOS included in the packaging. Much to our surprise (and their credit), Dell is actually standing up to Microsoft this time. Or seems to be, anyway. More details soon... Dell No Longer Selling Systems w/o Microsoft OS Dell unhooks Windows from desktops Ballmer Likes (But Won't Use) New Accounting Rules: In light of the recent business scandals at Enron and WorldCom, Microsoft has been under pressure to clean up its accounting practices and start counting employee stock options as a regular expense. When asked about the latter issue during a late-July media event, Microsoft CEO Steve Ballmer agreed that "it makes economic sense to expense options" but then told the crowd Microsoft will not adopt that practice anytime soon. He did, however, insist that neither he nor Microsoft chair Bill Gates will accept stock options in the future and trotted out a new method of tracking profits for each of the company's seven product divisions. But the move was too little too late, pushing several stock analysts to lower Microsoft's status as an investment. The Motley Fool also removed Ms from its recommended Rule Makers portfolio (see last link below) but, sadly, the company will remain a part of the crucial S&P 500 and NASDAQ stock indexes. Ballmer: No change to accounting rules The (New) Microsoft Machine We're Selling Microsoft Ms Releases Win2K SP3, Adds New EULA Hooks: Windows 2000 Service Pack was officially released into the wild on August 2nd, giving users of Microsoft's lame duck OS a plethora of big fixes and more control over their applications. The package, which is available as a free download or a $14.95 revenue-boosting CD, includes "stability improvements" and patches for the hundreds of security holes Microsoft will admit to finding in Windows 2000 since its release in February 2000 [see Feb 21, 2000]. The update also adds new software required by the antitrust lawsuit settlement Microsoft agreed to back in January [see first story]. More significantly, Service Pack 3 also updates the Windows 2000 User License, adding some questionable language to the EULA contract. Its juicier bits give Microsoft permission to "automatically check the version of the OS Product" and provide updates that are "automatically downloaded to your computer." That seems like the standard Software Update agreement, except now Microsoft doesn't have to ask permission before digging around and changing anything it doesn't like. That has led many to wonder if The Behemoth is planning on sneaking in some kind of digital rights management software that most users would not permit on their machines if given a choice. Another step down the short plank towards rentware and Microsoft.net. Premier users get Windows 2000 fixes Microsoft releases Service Pack 3 for Windows 2000 Microsoft EULA asks for root rights - again Gates Admits .net Overhyped, Progressing Slowly: On July 24th Bill Gates confessed to a group of reporters and stock analysts that his grand .net scheme has so far been an extremely expensive failure for Microsoft. Commenting about Microsoft's .net Servers and its now-abandoned Hailstorm services, Gates explained that the "dot-net" brand has been applied too widely to products that were not ready, causing consumers to misunderstand what .net means. (One might argue that it's not fully understood by Microsoft either, but I digress.) Gates said Microsoft will be doing a "reset" in the next few months and will then release several products with a clearer implementation of the .net concept. Microsoft Tries to Explain What Its .Net Plans Are About Gates Tries to Explain .Net Microsoft execs foreshadow .Net future Microsoft issues report card on .Net initiative .Net name ties Microsoft in knots Microsoft Settles FTC Lawsuit Over Passport: Not long after Gates' .net revelations, Microsoft settled a lawsuit filed by the government over MSN Passport. According to the Federal Trade Commission, Passport (a key part of .net) is not as secure as Microsoft first promised, failed to follow its own privacy statement, and illegally took information from underage children. Microsoft settled the case shortly before it was scheduled to reach the courtroom, suffering once again from a fierce government sponsored wrist slapping. Under the terms of the 20 year agreement (which included no monetary punishment) Microsoft will now actually follow the posted privacy policy, make its service more secure, and force parents to submit information for their children. The agreement also requires Microsoft to ensure it stays in compliance by employing outside auditors like TrustE, the Microsoft-controlled company that was vouching for Passport's security all along. Microsoft, FTC reach privacy settlement Microsoft Settles FTC Charges Alleging False Promises Microsoft Settles Privacy Complaint With FTC Passport Deal Gets Mixed Review Microsoft Enacts Controversial New Licensing Plan: Welcome to Microsoft Licensing 6.0 Cold shoulder for Microsoft plan AT&T Wireless to Feature .net Services, Wince: A few weeks ago the wireless communications spinoff of telecom giant AT&T agreed to sell Microsoft software and services to its customers. The non-exclusive agreement calls for AT&T Wireless to begin offering Windows CE-based phones and .net services by the end of this year. Back in 1999 Microsoft purchased four percent of AT&T for $5 billion, an investment that has not by any definition been profitable [see May 17, 1999]. Microsoft, AT&T form wireless alliance Microsoft, AT&T in Wireless Alliance Microsoft's Latest Wireless Deal X-Box Console Sets Game Title Sales Records, Costs Nvida: Xbox breaks US sales records Nvidia blames Microsoft for stock write down Windows CE Updated, .net Support Increased: On July 30, Microsoft's embedded and appliance platforms group released Windows CE.NET version 4.1, a minor update to the company's handheld operating system. The newest version will be more compatible with other technologies being pushed by Microsoft and its partners. Wince.NET was introduced back in January with an XP-compliant interface and ties to Microsoft's .net efforts. Microsoft unveils next version of Win CE .Net Microsoft Updates Windows CE .NET Microsoft Fights Government Open Source Choice in Peru: Microsoft's Big Stick in Peru MS 'Software Choice' scheme a clever fraud WebTV E-Mail Virus Spoofs 911, Police Not Amused: WebTV, Microsoft's failed attempt at monopolizing the interactive television market before it emerges, has fallen victim to an e-mail attack. WebTV devices (now known as MSNTV but still the same junk they were selling 6 years ago) are being infected by an e-mail virus or script that reboots them and then uses the boxes to dial 911. The virus is apparently not being spread by infected units, but that wouldn't be much of a problem anyway with only a small number of WebTV customers still in existence. Microsoft has advised users to delete any infected messages and then dial a special phone number for instructions about manually resetting the WebTV device. Virus Dials 911 MSN TV prank creating "emergencies" WebTV 911 exploit causes confusion OTHER UNRELATED STORIES: Windows alternatives sought as confidence drops Hotmail clean-out catches members out IBM and Linux our biggest threats - Microsoft More holes in Microsoft SQL Server MSWord 2000 'offensive to lesbians,' says rock star Microsoft says no to music swapping Microsoft makes bid to be the Sony of software Win32 API utterly and irredeemably broken Whither now for Exchange users? MSN Aims For the Next Level more threads...