Microsoft has submitted
the follow-up to Windows Vista to the committee that oversees its U.S. antitrust
compliance, to ensure the operating system is meeting the terms of the company's
agreement with the government.

According to last week's status report on the U.S. antitrust case, Microsoft
"recently supplied" the Technical Committee (TC) with a build of the
OS, code-named Windows 7, and the TC will "conduct middleware-related tests
on future builds" of the software. The move was revealed in papers filed
in the U.S. District Court for the District of Columbia.

The filing was part of regular status reports aimed at tracking Microsoft's
compliance with the 2002 antitrust settlement, which requires the company to
ensure its own applications do not have an unfair advantage over competitive
software that runs on Windows. The agreement also requires Microsoft to make
sure its software can work well with third-party applications. Lack of compliance
with a 2004 antitrust agreement in the European Union has cost Microsoft nearly
US$2.6 billion to date; the E.U.'s most recent fine against the company last
month was $1.3 billion.

Those on the TC so far are the only ones privy to what the follow-up to Vista
will look like. Microsoft is mum on details of the software. But recent company
moves and revelations hint at what can be expected from the software, which
is due for release in late 2009 or early 2010.

At the MIX 08 conference in Las Vegas last week, Microsoft revealed Internet
Explorer 8 (IE8) -- technology that likely will be a part of Windows 7, though
Microsoft has not linked the two products yet.

Microsoft demonstrated IE 8, showing mainly developer improvements, but also
some new end-user features such as one called "Activities." Activities
allows users to highlight any word or phrase on a Web site and then choose from
a drop-down box list of further actions they can take around that information,
such as doing a Live Search or searching MSNBC for more information.

Aside from IE 8, little on the record is known about Windows 7, and the word
from Microsoft is that it will talk about the OS when it's good and ready. Analyst
warn against expecting Windows 7 to be a blockbuster release, given the fallout
Microsoft is still dealing with from delivering a late and, to many, disappointing
Windows Vista.

Recent court papers in a class-action suit over Microsoft's "Vista Capable"
sticker program revealed that even Microsoft executives such as Steven Sinofsky,
the senior vice president of Windows and Windows Live Engineering Group, were
having driver- and application-compatibility problems with Vista after its release.
In those papers, revealed in e-mails made public in what has become a class-action
suit in a Seattle U.S. District Court, executives made statements to the effect
that they won't let the delays and myriad problems associated with Vista happen
again.

Mike Cherry, an analyst with research group Directions on Microsoft, said that
for Windows 7, Microsoft will likely keep the bells and whistles to a minimum
so they can deliver "something reasonable they can complete by a reasonable
date ... Their goal will be to try to put Vista behind them," he said.

Because of its compatibility problems and hardware requirements, Microsoft
is still struggling to inspire businesses to move from XP to Vista. Some business
users have even suggested that companies may skip Vista altogether and hold
on to Windows XP for a little longer so they can migrate from that to Windows
7.

On the consumer side, Microsoft already had to extend the length of time it
would allow OEMs (original equipment manufacturers) and retail outlets to sell
XP-based PCs by five months. The deadline for retailers and OEMs is now June
30, but that may be extended, as chip maker Intel expects low-cost desktops
and notebooks running its Atom processors to hit the market in the third quarter.
Given Vista's hardware requirements, those computers presumably will run XP,
though Microsoft maintains it is committed to the June deadline to take the
OS off the market.

To remedy these problems, Cherry suggested that Microsoft might serve itself
well by making Windows 7 a stable release for business users by using the same
code base as the recently released Windows Server 2008. He said Microsoft's
mistake with Vista was to try to serve consumers and business customers with
a flashy release that added a host of multimedia functionality instead of taking
into consideration practical concerns that would affect performance and compatibility.

"It would seem to me that what we really need [is] for a business edition
to be built off of that server code, so it would look much less fancy than Vista,
much more austere with not a lot of wasted functionality," he said.

IDG News Service

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