Surprise Settlement Evenly Splits Microsoft

[InfoSec News <isn () c4i org>]

Forwarded from: "R. A. Hettinga" <rahettinga () earthlink net>

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Status:  U
Date: Sun, 20 Jan 2002 00:44:14 -0500
To: dcsb () ai mit edu
From: "R. A. Hettinga" <rahettinga () earthlink net>
Subject:  Surprise Settlement Evenly Splits Microsoft
Sender: bounce-dcsb () reservoir com
Reply-To: "R. A. Hettinga" <rahettinga () earthlink net>

http://www.satirewire.com/news/jan02/patchsoft.shtml

SURPRISE SETTLEMENT EVENLY SPLITS MICROSOFT;
ONE FIRM TO MAKE SOFTWARE, OTHER TO MAKE PATCHES
Decision Keeps Redmond from Monopolizing Massive Microsoft Patch Industry

Redmond, Wash. (SatireWire.com) - In a surprise settlement today with
nine U.S. states, Microsoft agreed to be split into two independent
companies - one that will continue to make Microsoft operating
systems, browsers, and server software, and another, potentially
larger company that will make patches for Microsoft operating systems,
browsers, and server software.


Critics immediately charged that the settlement - which overrides a
previous agreement with the U.S. Department of Justice - does nothing
to diminish Microsoft's standing as the world's most powerful software
company. But industry analysts argued that providing patches for
security holes in Microsoft programs is a major, untapped growth
industry, and applauded the states for not allowing Redmond to control
it.

"Just consider, Microsoft can make an operating system, such as
Windows XP, and sell 200 million copies, but each one of those copies
is going to need at least five patches to fix security holes, so
that's 1 billion patches," said Gartner Group analyst Mitch Fershing.
"That is an enormous, undeveloped market."

Microsoft employees seem to agree, as sources in Redmond described a
"mad scramble" among staffers to position themselves for spots at the
new company, called Patchsoft. Asked why people would want to leave
Microsoft for a startup, the source said the answer was "really quite
simple."

"Everyone here is asking themselves, 'Do I want to be part of the
problem, or part of the solution?'" he said.

But J.P. Morgan analyst Sherill Walk suspects another motive.
"Considering the sheer number of patches we're talking about, I think
the new company will become another monopoly, and I believe the people
who've jumped ship very well know that."

"Nonsense. It's really all about consumer choice," responded
Patchsoft's new co-CEOs, Bill Gates and Steve Ballmer.

But how will Patchsoft make money? Currently, Microsoft issues free
patches for problems in Windows XP, SQL Server, Internet Explorer,
Outlook, Windows 2000, Flight Simulator, Front Page, Windows Me, Media
Player, Passport, NT Server, Windows 98, LAN Manager (for a complete
list of MS software needing patches, see www.support.microsoft.com).
Under the agreement, Microsoft will no longer issue patches, which
Gates said explains the recent five-day outage at Microsoft's upgrade
site. "That was planned," he said. "It was a test of the Microsoft No
Patch Access system. Went perfectly. No one was able to download
anything."

At a press conference to outline the settlement, Connecticut Attorney
General Richard Blumenthal pledged to keep a close eye on Patchsoft to
ensure it would not overcharge for its services. He also expressed
hope that other firms would soon become Certified Microsoft Patch
Developers (CMPDs) and challenge the spin-off. Asked if Patchsoft,
with so many former Microsoft employees, will have an advantage over
potential competitors in the Microsoft patch market, Blumenthal said
the settlement prohibits collaboration.

"Patchsoft developers will not have any foreknowledge of bugs or
security holes before software is released. They'll just have to be
surprised," he said.

"So it will be just like it was when they were at Microsoft," he
added.

One Reuters reporter, meanwhile, questioned the long-term viability of
Patchsoft. "This seems like a logical split right now, but what if
Microsoft's products improve to the extent that patches are needed
less frequently, or perhaps not at all?" she asked.

"I'm sorry, I can only respond to serious questions," Blumenthal
answered. RECOMMEND THIS PAGE

Copyright © 1999-2002, SatireWire.

 
-----------------
R. A. Hettinga <mailto: rah () ibuc com>
The Internet Bearer Underwriting Corporation <http://www.ibuc.com/>
44 Farquhar Street, Boston, MA 02131 USA
"... however it may deserve respect for its usefulness and antiquity,
[predicting the end of the world] has not been found agreeable to
experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'

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