On July 31, Microsoft finally released a package of Windows 2000 bug fixes that was promised before the system had even shipped. Windows 2000 SP 1 includes fixes for dozens of security compromises and bugs, some of which were known about since last year when the product was sent to manufacturing. While the 87MB update avoids adding new features (a common cause of trouble with service packs), it does bring a new problem to the table that disables some personal firewall software. But since Win2K is targeted at professionals and high-end enterprise networks, Microsoft is not likely to be losing much sleep over the problem.
According to Microsoft, the release of SP1 should increase demand for 2000 in corporate settings since it supposedly improves the operating system's reliability and security. So far Windows 2000 has failed to make a significant dent in the server market, an area still dominated by Unix and Linux. But analysts agree that most remaining installations of NT server will disappear before the end of this year as that system is overtaken by its (relatively) more dependable descendant.
ALSO SEE: WinInfo, ZDNet, WinInfo

At the same time it was releasing the first updates for Windows 2000, Microsoft sent a release candidate of Windows 2000 Datacenter Server to its beta testers and promised to ship that high-end product in another four months - only 10 months later than the original schedule. The supposed Unix-killer server will be available in 32 and 64 bit versions if it ever ships, but questions still surround the 64-bit edition, particularly about what 64-bit platform it will run on since Microsoft has abandoned Alpha development and Intel is still at least 8 months away from shipping 64-bit processors.
Making things confusing, Microsoft is also testing early versions of Whistler and the final betas of Windows ME. Whistler is a successor to Windows 2000 that will likely be christened Windows.NET when it ships sometime in late 2001. That OS will be a minor upgrade to Windows 2000, notable mainly for its promise to unite Windows on one platform and finally replace the DOS-core 9X systems Microsoft keeps updating. The last one of those, Windows ME, has entered the final stages of testing and is supposed to ship before the holiday shopping season, but testers we've talked to say the system is still suffering from some major bugs. To increase demand for the glorified Windows 98 service pack when it IS made available, Microsoft also announced a 'promotional deal' lowering the upgrade price to a mere $60.
ALSO SEE: WinInfo, InfoWorld, WinInfo, C|Net, The Register

COURT NOTES: Microsoft on July 27 asked the Supreme Court to deny a government motion that would 'fast track' the appeals process directly to their jurisdiction. Microsoft's main argument in the filing was that the 'fast track' law being used applies only to the federal government's small portion of the case, and additionally the nation's highest court is too busy and not set up appropriately to handle the overwhelming numbers of "factual errors" presented in the original government antitrust case. The government now has until August 14 to file a response, with Microsoft given another 8 days after that to issue a rebuttal.
ALSO SEE: C|Net, WinInfo, C|Net

After a lengthy investigation, the EU's European Commission launched its own antitrust case against Microsoft with a series of legal filings on August 3. Those filings accuse Microsoft of withholding information about APIs and other interfaces from competitors, most notably Sun Microsystems - the company behind the original EU antitrust complaint. Microsoft, which has 2 months to issue a formal response, denied withholding information from any companies, competing or not. The Commission is also investigating further charges against Microsoft filed by software dealers who feel persecuted by anti-piracy methods the company is now deploying.
ALSO SEE: The Register, ZDNet

The beta test program for the next version of Office has began. On August 4, Microsoft released developers versions of what is being called 'Office 10' to its panel of trusted testers, with hopes of shipping the suite as 'Office 2001' in November or December of this year. While the suite will offer a few .NET features, it will primarily serve as a bridge to future versions of network-centered productivity 'services'. The suite also features voice recognition technology for navigation and dictation developed by Lernout & Hauspie, a company Microsoft has significant investments in.
ALSO SEE: InfoWorld, WinInfo

On July 18, Microsoft posted its earnings for the last quarter of fiscal year 2000, beating estimates (as usual) by two points. Microsoft CFO John Connors said the company will be affected by a downturn in computer sales, but should make up for that with sales of Windows 2000 server products. However, Connors hesitated to release specifics about Win2K sales, meaning that things are likely not as strong as he claims. Connors also announced a stock buyback plan, to hopefully give the company's stock price a boost past the plateau it has sat on for the last 2 years.
ALSO SEE: InfoWorld, The Register, C|Net, C|Net

Microsoft additionally announced a reorganization (the third in 18 months) to orient the company's development towards .NET. The move will further blur the differences between Microsoft's internal divisions, making it harder than ever to divide the company by product lines.
ALSO SEE: WinInfo, C|Net

In mid-July, Microsoft announced that its combined list of MSN sites (excluding microsoft.com) pulled in some 201 million unique visitors in June, propelling it to the top of the Internet heap. Bellwether AOL and Yahoo! Web properties came in close, but still failed to draw the same volumes of traffic as Microsoft's sites. However, Yahoo! and AOL-owned sites are for the most part very profitable, while MSN remains billions of dollars in the red even after five years and four major relaunches. MSN also has an unfair advantage in the fact that most of its customers have been purchased along with MSN sites like Hotmail and LinkExchange. A separate independent analysis by MediaMetrix gave MSN second place, behind AOL and slightly ahead of Yahoo!.
ALSO SEE: The Register, C|Net

Apparently learning nothing from last time [see NewsSource, July 17 '98], the United States Navy is again preparing to launch a major vessel powered by a Microsoft operating system. The USS Ronald Reagan, a CVN 77 class aircraft carrier scheduled for launch in 2008, will be controlled by a descendant of Windows 2000. The multi-billion dollar ship's control systems are being built by Lockheed Martin's Warfare Systems Team and Microsoft Federal Systems, under contract with Newport News Shipbuilding Inc. Not so coincidentally, last year Bill Gates' investment firm bought an eight percent stake in Newport, one of only two companies in the US capable of building ships on such a large scale. Considering that, don't be surprised if the entire Navy is Microsoft powered before this decade is over.

In response to repeated criticism over the privacy problems in most of its products, Microsoft announced that it is developing an Internet Explorer addon that will assist users in blocking and deleting Web cookies. Of course, the key word here is 'developing' - the technology is still being tested, and could very well not survive beta testing if Microsoft feels that the announcement alone is enough to restore some credibility. Similar functionality already exists in the Opera browser and is being developed for release with Netscape 6.
ALSO SEE: InfoWorld, The Register

On Tuesday August 6, Microsoft announced several deals that would make e-books from major publishing houses available on its Reader software. Unfortunately, the books will only be viewable on the desktop Windows version of Reader since the PocketPC versions of that software do not include a three-level security scheme required to decode the files. Microsoft promised an upgrade for the handheld version, although that may not be so easy since the program is stored on ROM.
ALSO SEE: WinInfo, ZDNet, The Register

After five months of beta testing, Microsoft has released Windows Media Player version 7, a somewhat minor upgrade to the company's trojan horse entertainment center software. WMP 7 includes support for every significant media format, with the notable exception of RealAudio. The latest player also features the capability to change interfaces with a variety of 'skins' - not a particularly new idea for audio player software, but an interesting preview of what Microsoft is working on for the next versions of Windows.

Nearly three years after purchasing the site, Microsoft has finally begun seriously migrating Hotmail onto servers that run its own software. According to a recent server poll, Microsoft has replaced nearly a quarter of Hotmail's FreeBSD servers with Win2k machines, with hopes of totally migrating the service to Windows. The company previously tried to move Hotmail onto NT back in 1998, resulting in a lengthy outage and highly critical media coverage.
On July 12, Microsoft purchased NetGames USA, a company that develops multiplayer and Web-interface game software. According to a Microsoft spokesman, the company's Web properties will be integrated with the MSN Gaming Zone, while other technologies will eventually become part of the long-promised X-Box gaming console.
To reduce costs and drive more people to its technical support Web site, Microsoft is eliminating the 90-day period of free telephone support that has traditionally been included with new products. Customers will now get two free calls, after which they will have to pay the traditional $35 'per incident' tech support fee. The change will be enacted in September.
Microsoft's Expedia spinoff, as part of a plan to monopolize business generated by travelers, is opening Internet cafes in major airports across the country. The facilities will be operated by HMSHost, a company that already runs a chain of similar coffee shop/Internet access bars around the United States. According to reports, Expedia is also working on a self-branded travel magazine that will be sold in the facilities.
When Visual Studio.NET is released next year there will be no trace of Visual J++, at one time the market-leading Java development tool. In its place will be software for coding in XML and C#, the latest in a long line of 'replacements' for Java. Microsoft says the exclusion is due to Sun's pending legal action, but that's likely just an excuse to abandon any technology Microsoft cannot control.
Bill Gates recently invested some $19 million into Castle & Cooke, a company that owns most of the Hawaiian island of Lanai, the site of his 1994 wedding. Gates has expressed interest in purchasing the entire company, which would give him control over almost the entire land mass - perhaps an ideal place to start up his own small country.

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