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This is an archive article published on February 22, 2008

Microsoft plans ‘strategic shift’, says will share more technical secrets

Seeking to satisfy European antitrust officials, Microsoft said on Thursday...

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Seeking to satisfy European antitrust officials, Microsoft said on Thursday that it would open up and share many more of its technical secrets with the rest of the software industry and competitors.

Microsoft executives, in a conference call, characterised the announcement as a “strategic shift” in the company’s business practices and its handling of technical information. They also portrayed the moves as only partly a nod to the continuing challenge Microsoft faces from Europe’s antitrust regulators.

The broader goal, they said, is to bring Microsoft’s flagship personal computer products — the Windows operating system and Office productivity programs— further into the Internet era of computing. Increasingly, people want a seamless flow of documents, data and programming code among desktop PCs and the Internet, especially as they make the shift from using software on a PC to using services on the Web.

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“These steps are being taken on our own,” said Steven A Ballmer, Microsoft’s chief executive. The move, he said, was a recognition of Microsoft’s “unique legal situation,” but it was also the company’s effort to adapt to “the opportunities and risks of a more connected, more services-oriented world.”

Microsoft’s first step will be to put on its Web site 30,000 pages of technical documentation detailing how its Windows desktop and Microsoft server programs communicate and share information. Until now, that information was treated as a trade secret and was available only under a special license.

Ray Ozzie, Microsoft’s chief software architect, said that by sharing more information, Microsoft would make it easy for others to write Internet programs that tap into personal information on a PC.

That, Ozzie added, should bring new sets of Web services that, for example, might match a person’s calendar information with a doctor’s schedule. Then smart software could make an appointment. At home, he noted, someone’s digital collection of music, movies and family photos would be more easily shuffled to different devices and screens.

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“The Internet opens up a world of potential innovation,” Ozzie said. “And I think we’ve just scratched the surface.”

Microsoft announced other plans to open up its technology, like allowing developers to add more non-Microsoft document formats to its Office word processing and spreadsheet programs. Microsoft also made commitments to increase its support for industry standards and work with open-source software developers.

European regulators and others have long accused Microsoft of using its dominance in PC operating systems and software to lock out competitors. Last October, after a nine-year confrontation and a ruling against the company by Europe’s second-highest court, Microsoft agreed to share information with rivals on terms it had long resisted.

After the Microsoft announcement on Thursday, the European Commission issued a skeptical statement. The commission said it “would welcome any move towards genuine interoperability,” or allowing software programs from different companies to work smoothly together. But the commission noted that “today’s announcement follows at least four similar statements by Microsoft in the past on the importance of interoperability.”

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