Beyond Binary

Microsoft and Novell said Tuesday that they are nearly ready with a beta version of Moonlight--a Firefox add-on that allows Silverlight content to play on Linux PCs.

The software is being announced as the companies tout the second anniversary of their peace deal.

Work on Moonlight began in May 2007 and an alpha version was shown a month later. Novell's Miguel De Icaza, who is heading the Moonlight effort, said on his blog last week that the beta version should be out within days.

The move helps Microsoft in its effort to position Silverlight as a rival to Adobe's Flash. Flash already runs on Linux and is installed on an overwhelming percentage of PCs. Both Flash and Silverlight also run on Macs.

Silverlight's biggest early win was Microsoft's deal with NBC that saw the technology used to power the video on NBCOlympics.com. Silverlight suffered a blow earlier this week when Major League Baseball said it was switching to a Flash-only player for the 2009 season.

In addition to the Moonlight announcement, Novell is releasing a management pack that plugs in to Microsoft's System Center product that will allow IT managers to more easily oversee mixed deployments of Suse Linux and Windows.

As for the broader work between the two companies, they now have more than 200 joint customers, said Susan Heystee, Novell's general manager global strategic alliances. That's up from fewer than 70 customers at the end of the first year.

"That really goes to the value proposition and the focus we've really had around interoperability," Heystee said. "Many of these companies are deploying Linux and windows in their data centers."

See also:
• MLB.com drops Silverlight for Adobe Flash
• Adobe bringing full-fledged Flash to phones

(Credit: Ina Fried/CNET News)

There's a lot of ways to look at Microsoft's decision to abandon OneCare and come up with free antivirus software.

But I had to do a double take Tuesday night when I saw the Wall Street Journal headline on the decision: "Microsoft plans new spyware."

I saw the headline first on my phone, then went to the Journal's Web site, where the headline was featured on the main page. (See screenshot).

The article itself makes no reference to Microsoft creating spyware, and once one clicks on the story, bears the headline "Microsoft Plans to Introduce Free PC Security Software."

Microsoft's decision to offer free antivirus software puts rivals such as McAfee and Symantec in a tough position.

To be sure, those two--and other rivals--will be able to tout products that offer a broader range of features than Microsoft plans to deliver with "Morro" next year. At the same time, "nada" is a tough price to compete against.

That raises the question of whether those companies or others may look to antitrust regulators for help. We've put queries into those companies and also posed the antitrust question to Microsoft. I'll let you know what we hear back.

One thing in Microsoft's corner is the fact there are already free antivirus products on the market, such as AVG, though typically security vendors look to upsell consumers from low-cost or free products to higher-end ones.

Microsoft appears to be getting out of the paid security software business, at least on the consumer end. (Microsoft still plans to offer paid security products for businesses).

Also, Microsoft said it plans to deliver Morro as a free download rather than bundling it with the operating system--another move that could dampen some antitrust concerns.

It's unclear whether giving away software that others charge for will ultimately be enough to justify regulatory action. Although one antitrust lawyer predicts rival security firms will complain and that antitrust authorities will listen.

"Sure, there will be antitrust issues. They're just...daring the antitrust authorities to knock it off," said Daniel Wall of the San Francisco firm of Latham & Watkins. "This is an old issue, the notion of them giving away for free products that others sell and it is absolutely guaranteed to get the attention of the antitrust authorities in Europe, Korea, Japan, and other jurisdictions."

"They're incorrigible," Wall said of Microsoft.

Antitrust regulators in the U.S. have tended to focus on harm to consumers as opposed to competitors. Authorities in Europe and Korea have taken a broader view, taking action against Microsoft for actions deemed to hurt competitors, such as bundling its media player into Windows.

Both Europe and Korea have required Microsoft to offer versions of its operating system without certain components. In this case, though, Microsoft is not talking about distributing the antivirus code as part of Windows itself.

Representatives from Microsoft, Symantec, and McAfee were not immediately available to comment.

CNET News' Elinor Mills contributed to this report.

Update 4:45 p.m. PST: Here's what Microsoft had to say.

"We are focused on addressing the security needs of consumers," Amy Barzdukas, a senior director in Microsoft's Online Services and Windows Division, said in a statement. "We will, of course, continue to comply with any government rulings."

Update 6:25 p.m.: And we got comment from security firms McAfee and Sophos.

McAfee spokesman Joris Evers, asked if his company would raise an antitrust complaint over Microsoft's move, said: "It's too early to say anything about that."

Over at Sophos--which focuses on the enterprise market and so doesn't compete with Microsoft's consumer security products--Senior Technology Consultant Graham Cluley predicted antitrust issues would not arise.

"I am no expert on such things, but provided Microsoft does not bundle 'Morro' in with its operating system I would be surprised if there were antitrust issues," he said in an e-mail. "Anything which encourages more people to run antivirus has to be good news for all of us."

Asked if Microsoft would ever consider bundling the security features into Windows, Microsoft's Barzdukas said: "I can't foresee such a time."

Microsoft's decision to discontinue OneCare in favor of a new free antivirus product also means an end to Equipt, a $69-per-year subscription version of Office and OneCare that the company had been selling on the shelves of Circuit City.

A box shot of the Equipt product, which only briefly has graced Circuit City's shelves.

(Credit: Microsoft/Circuit City)

The copies will be headed out of retail stores in the coming weeks, although the subscription will run through some time next year. But since Microsoft plans to offer free licenses of Office to Equipt customers when their subscriptions end, those existing copies look like a pretty good deal for those who need Office Home and Student--the version of Office included in Equipt.

The company had announced Equipt as something tailored for so-called "tech benches"--services like Best Buy's Geek Squad. However, in the U.S., Circuit City was the only retailer that had started selling Equipt.

Microsoft had hoped to capitalize on the fact that people were already buying subscription security software to upsell them on Equipt. But with Microsoft now planning on giving away security software, that opportunity appears to have gone away.

"It was a very difficult decision for us to shut down Equipt but the fact of the matter is there is this higher order need (to offer free antivirus software)," said group product manager Bryson Gordon. Gordon declined to say how many Equipt subscribers there are, but said the product had met internal sales goals.

"The decision to end-of-life Equipt was not in any way based with sales performance," he said.

Equipt, initially known by the code name Albany, is unlikely to be the last Office subscription service, particularly as Microsoft moves into Web-based versions of its productivity software. The company has also sold prepaid Office subscription cards in some countries.

"What we really are going to turn our attention to is other places where we can build a software plus service offering of Office like we sold on a subscription basis," Gordon said.

As for existing Equipt subscribers, they not only will get a free license to Office Home and Student, they can also call and cancel their subscription, get a pro-rated refund and still get the copy of Office. Gordon said that Equipt buyers tended to be Microsoft's early adopters and said that "We really want to make sure they are taken care of."

Transitive, the company best known for powering the emulation layer that helped ease Apple's transition to Intel chips, announced Tuesday that it is being bought by IBM.

In addition to helping Apple create Rosetta, Transitive eased a number of different architecture transitions in the tech world, including SGI's move from MIPS to Itanium processors as well as an effort by Intel to woo Sun Microsystems customers. IBM was also a customer, using Transitive's tech to allow x86 workloads to run on Big Blue's Power processor-based servers.

IBM didn't say how much it would pay to acquire Transitive, which is headquartered in Los Gatos, Calif., and also has development efforts in Manchester, England. Transitive has about 100 employees. The deal is expected to close in early December.

"Transitive is a leader in cross-platform virtualization and a pioneer in developing technologies that allow applications written for one type of microprocessor and operating system to run on multiple platforms--with little or no modification," IBM said in a statement. "As a result, the technology will enable customers to consolidate their Linux-based applications onto the IBM systems that make the most sense for their business needs."

IBM plans to continue to offer its PowerVM LX 86 product, which is based on Transitive technology. IBM is evaluating Transitive's other products as part of its overall Systems product strategy.

With the economy tanking and the holidays looming, Microsoft is hoping to salvage some Zune sales by chopping prices.

(Credit: Microsoft)

The software maker plans to announce on Wednesday a price cut for its flash-based models. The 4GB version will drop to $99, the 8GB model will drop by $10 to $139, and the 16GB model will sell for $179, down from $199.

Microsoft is also cutting prices for several of its Zune accessories. The cuts take effect on Wednesday in the U.S. and on Friday in Canada.

Zune marketing director Adam Sohn said in an interview on Tuesday that the moves were being made to "ensure hopefully we have a good holiday season." The prices put Zune's flash players cheaper than a similar capacity iPod Nano, though Sohn said that wasn't the explicit goal of the price cuts.

"We're trying to take into consideration what the realities of the market are," Sohn said.

The company introduced the latest Zune models, as well as the version 3.0 update to its software in September. Microsoft introduced a few new games and other device features on Tuesday as part of a version 3.1 firmware update.

Microsoft also kicked off a new wave of TV ads on Monday that aim to get more people to download the free Zune software, even if they haven't yet decided to plunk down for a Zune player or Zune Pass subscription.

"We think we need to attack it from both sides," Sohn said. The ads will run in prime time as well as on national cable and online, he said.

The latest celebrity tour guide of the universe is Wall-E, the animated robot and star of the Disney/Pixar movie, which came out on DVD on Tuesday.

(Credit: Microsoft; CNET News)

Microsoft's Worldwide Telescope has a new celebrity tour guide: Wall-E.

One of the features of the telescope software is the ability for both experts and amateur stargazers to offer their own guided tour of the universe to share with others. The latest such tour is by Wall-E, the animated robot from the Disney/Pixar movie of the same name.

"WorldWide Telescope is about making science fun for everyone," Curtis Wong, manager of Microsoft's Next Media Research Group, said in a statement. "By working with Disney/Pixar, we're enabling kids and families to discover the magic of the universe for themselves in an even more engaging way. What could be more fun than exploring space with a famous robot?"

The telescope software is a Windows-only Internet application, available as a free download from Microsoft Research. At the heart of the software is a new "visual experience engine" that Microsoft hopes to use for things beyond the telescope.

Microsoft Research chief Rick Rashid noted at last month's Professional Developers Conference that his unit is also updating the telescope software with new features.

As for Wall-E, he's been busy with the DVD release this week. At Adobe's Max conference on Monday, the robot was seen as part of a demo showing the abilities of Flash Player 10.

Aiming to head off further legal action against its customers, Microsoft is asking a federal court to declare that its Visual Studio product doesn't violate patents from WebXchange.

In a suit filed last week in San Francisco, Microsoft seeks a declaration that WebXchange's patents are invalid, unenforceable, or that Microsoft does not infringe on the patents. The move comes after WebXchange sued three Microsoft customers earlier this year in Delaware.

In its suit, Microsoft said that WebXchange's lawsuit has "placed a cloud over Visual Studio software, Web services, and the SOAP protocol."

"Microsoft filed this action to protect our customers and ourselves against spurious patent infringement lawsuits filed by WebXchange," Microsoft said in a statement. "We will demonstrate to the Court that WebXchange's patents are not infringed by Microsoft technology and that WebXchange's patents are invalid and unenforceable."

The three companies that were sued have all sought indemnification from Microsoft, as have some companies that have not yet been sued, Microsoft said in its suit.

Microsoft's suit was noted earlier on Monday by IDG News Service, which reported that FedEx, Dell, and Allstate were the three customers sued by WebXchange.

Transmeta, a company that once hoped to rival Intel and Advanced Micro Devices to power portable computers, announced Monday that it would sell itself to Novafora for $255.6 million in cash.

Novafora said it hopes to use Transmeta's people and technology in its video processing chips.

"Transmeta's innovative technology and the expertise of its employees are valuable additions to Novafora," Novafora CEO Zaki Rakib said in a statement.

For their part, shareholders are expected to receive between $18.70 and $19 for each Transmeta share they own. The deal was unanimously approved by Transmeta's board, but still requires approval of its shareholders. The offer is higher than a $15.50-per-share unsolicited bid received earlier this year.

Separately, Transmeta said it has entered into a non-exclusive patent license agreement with Advanced Micro Devices (AMD). Under the terms of the agreement, AMD will transfer to Transmeta 700,000 shares of Transmeta's Series B Preferred Stock held by AMD. AMD invested $7.5 million in Transmeta last year.

The deal to sell itself puts at an end the company's efforts to figure out what to do with its technology, which was once a top-secret effort to unseat Intel in the low-power PC market.

"We believe the deal is a win for all our stockholders," Transmeta President Les Crudele said in a statement. "We have spent the past several months extensively exploring our strategic options and believe that the agreement with Novafora best serves the interest of our stockholders."

In an interview Monday, Microsoft senior vice president Chris Capossela said that, at least initially, the browser based versions of Excel, Word and PowerPoint won't have an offline mode.

"In the first generation we are certainly looking at having them be connected," he said. "For offline usage of course the Office suite is incredibly powerful." (See YouTube video below for his full comments on the matter. Apologies in advance for the bad sound quality.)

Google has been working to add an offline ability to Google Docs, while Zoho was even earlier to add the ability to work within a browser while offline.

Capossela's comments came following the launch of Microsoft Online, the company's hosted versions of Exchange and Sharepoint.

Microsoft confirmed at last month's Professional Developer Conference in Los Angeles that it was bringing to market browser-based versions of its Office applications. The company has said that a technology preview version should be available still this year.