Microsoft is to revamp its next-generation Windows operating system
to make it easier for rival companies' products to compete.
The move follows last month's US Court of Appeal ruling that
Microsoft agreements with computer manufacturers to bundle its
Internet Explorer software with the Windows operating system were
illegal.
The move was not a court-ordered remedy but is widely seen as a bid
to pre-empt court orders ahead of the 25 October launch of Windows
XP.
Under the plan, computer makers will be given more flexibility to
configure desktop versions of the company's Windows operating
system, including putting the icons of non-Microsoft products on
desktops and removing some Microsoft icons.
Microsoft CEO Steve Ballmer said the company was making the move
because, "we recognise that some provisions in our existing Windows
licence have been ruled improper by the court".
Tim Bajarin, president of consultancy Creative Strategies, said the
move was the first concrete sign that Microsoft was willing to curb
its business practices and that it demonstrated the software
giant's desire for a negotiated settlement to its anti-trust court
battle.
"This is one of their first volleys to show the industry that they
are willing to be somewhat flexible. It's clear Microsoft is
listening closer and - they really are looking for some kind of
settlement rather than pushing forward indiscriminately," he
said.
However, Bajarin said many Microsoft PC manufacturing partners,
such as Dell, were unlikely to remove the Internet Explorer browser
from the desktop. Many users have become "conditioned" over the
past two years to use Microsoft's browser software, he said, and PC
makers may be reluctant to yank their browser of choice.
Some analysts thought the Microsoft move was tokenistic. "It's a
little too late for Netscape," said Chris Le Tocq, an analyst for
Guernsey Research. "Why would an original equipment manufacturer
remove Internet Explorer as the browser when most of their
customers expect to use it anyway?"
"Essentially, what Microsoft is doing here is moving from a war
waged over browsers to a war which will be waged over media formats
and Web services," he added.
Rob Enderle, research fellow at Giga Information thought the
concessions were the only way Microsoft could guarantee shipping
Windows XP on 25 October. "They're just trying to make sure XP gets
out the door," said. "They have no window to let this product slip
at all."
The court's ruling made it clear that if Microsoft did not make
concessions on the product, it would have been blocked, Enderle
added.