MESSAGE
DATE | 2008-02-21 |
FROM | Ruben Safir
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SUBJECT | Subject: [NYLXS - HANGOUT] for what its worth
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Microsoft Pledges To Open Up Some Software February 21, 2008: 08:05 PM EST
Feb. 22, 2008 (Investor's Business Daily delivered by Newstex) --
Hoping to appease antitrust regulators in the European Union, Microsoft (NASDAQ:MSFT) on Thursday said it would work to make its software products more interoperable with those of its competitors.
Microsoft MSFT executives promised to support standards and work more closely with the industry, including proponents of free, "open-source" software.
In a conference call, Microsoft Chief Executive Steve Ballmer said: "While we've shared lots of information with our partners over the years, enabling developers to write many, many, many -- now hundreds of thousands -- of applications, for example, for Windows, today's actions represent a significant expansion toward even greater transparency and interoperability."
Microsoft said it would publish on its Web site documentation for the "application programming interfaces" and communications protocols that it uses to connect its most popular products to other Microsoft software.
It previously charged a fee for access to its software blueprints. But now Microsoft is giving away the documentation and computer code needed to make third-party applications run better with Windows, Office and other products.
Microsoft will still charge patent license fees to companies that sell software built using this information. But Microsoft said those fees would be low.
The software giant also said it would open up its Office software to more document formats.
Microsoft says the broad-reaching changes are a response to business and enterprise customers who want more information sharing across computer systems and software applications.
It also cited its need to comply with the September 2007 judgment of the European Court of First Instance. That ruling forced Microsoft to reveal the communications protocols between its PC and server operating systems so that rivals would be on a level footing in developing software applications.
Microsoft's latest move reflects both its "unique legal situation" as well as "new opportunities and risks in the more-connected world," Ballmer said.
Microsoft said the changes apply to its high-volume products, including Windows Vista, Office 2007 and Windows Server 2008. It also includes SQL, Exchange and Sharepoint 19erver products for databases, messaging and collaboration.
Microsoft is reacting to a shift in the computing world toward a hybrid platform that uses the personal computer, servers and resources accessed over the Internet, says Charlie Di Bona, an analyst at Sanford C. Bernstein. By opening up its software, Microsoft could increase its sales over the long term, he says.
Antitrust problems in Europe were the main reason for the changes, says Greg DeMichillie, an analyst at independent research firm Directions on Microsoft.
The Redmond, Wash., software giant is responding to the EU's original antitrust case, which involved server software, as well as trying to head off other antitrust rulings, DeMichillie says.
Microsoft is concerned about an investigation initiated by the EU in January into its Office productivity software franchise.
"By including Sharepoint 14d Office into this announcement, they're trying to get ahead of the curve and forestall an investigation into Office," DeMichillie said. "Office has never been subjected to antitrust scrutiny."
Office wasn't part of the EU case or the earlier U.S. case, which focused on Microsoft's use of its Windows PC operating system to dominate the Web browser market.
The EU also has a complaint on file seeking to require Microsoft to open the communications protocols in its Sharepoint 14d Exchange server products.
Microsoft wants to "clear the decks" of its antitrust issues in Europe now because it will face them later this year over its proposed acquisition of Internet services company Yahoo (NASDAQ:YHOO) YHOO, DeMichillie says.
Microsoft, he adds, hopes regulators will have a better perception of it if it shows progress in being more open and accommodating.
But the European Commission, the EU's regulatory body, reacted skeptically to Microsoft's news.
"The Commission would welcome any move toward genuine interoperability," regulators said in a written statement. "Nonetheless, the Commission notes that today's announcement follows at least four similar statements by Microsoft in the past on the importance of interoperability."
Newstex ID: IBD-0001-23202762 -- http://www.mrbrklyn.com - Interesting Stuff http://www.nylxs.com - Leadership Development in Free Software
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