A new study by the Gartner Group shows that Microsoft is gradually eliminating clauses for "concurrent" licensing and other price breaks in its BackOffice software that could result in overall higher bills than expected. This is a similar tactic taken by the company earlier this year with other business software. By eliminating concurrent-use licensing, companies now must buy a license for each person that will use a product, not just the number expected to use it at one time. So while Microsoft's prices appear to be the same as they were two years ago, profits are soaring and customers are suffering. And, unfortunately, it is more cost effective for most companies to pay the higher licensing fees than rip out a whole software infastructure and replace it with other products.

According to a report in the New York Times last Thursday, last year Microsoft forced Digital to drop its plans for a network computer aimed at the educational and business markets. Reportedly, Digital and Microsoft competitor Oracle were working on the project, code named Shark, when Bill Gates pressured Digital's then-chairman Robert Palmer to drop the project by threatening to stop NT development for Digital's Alpha processors. Oracle Chairman Larry Ellison said that Palmer told him in August 1997 the project was being cancelled but refused to say why, only commenting that "If I'm subpoenaed, I'll tell the truth."

Microsoft is urging Internet Explorer users to download a new patch correcting security problems that allow hackers to read unsuspecting users' files. The new problem, which affects all Windows & Mac versions of IE 3 and 4, gives site owners access to any file that they know the name of. It was recently discovered by a 26-year-old Bulgarian, but Microsoft didn't report the problem until a patch had been developed. Makes us wonder what else they know about but won't tell..

Citibank has made an equity investment into MSFDC, the online billing system developed by Microsoft and First Data Corp. Following the Citibank investment, MSFDC changed its name to TransPoint. The amount of money invested by Citibank was not reported, but Microsoft and First Data still own equal sized portions of the venture. Citibank is, coincidentally, an anchor tenant on the Netscape Netcenter financial channel. (wonder how long Microsoft will let that continue) Coming soon: VisualVisa and ActiveDebt.

Almost a year after announcing its development, Microsoft has launched a beta of MSN Internet Search. The new search/directory hybrid, developed with cooperation from Inktomi, will be integrated with MSN's large stable of unsuccessful sites. No word yet on how this will affect other search engines currently featured on MSN.
According to company officials, China's Legend Holdings has joined forces with Microsoft to sell a palm-size computer in that country. Beginning this December, Legend will make and sell the cassette-tape-size Windows CE device in China for about 3,500 yuan ($420).
Monday Microsoft announced a new photo-editing and illustration product it hopes will lure Office users into the world of art. According to the press release, PhotoDraw 2000 will build professional graphics for web sites and PowerPoint presentations. The $150 software, which hits stores sometime next month, could eventually be bundled with Office 2000.

_{Ellison calls Gates the PC Pope
Sun, Microsoft fire closing volleys in Java hearing
Computing giants backing Linux
Novell to bundle Internet Explorer with NetWare
IBM, Sun Present Biggest Threat To Microsoft}