Microsoft

Peter Klein, Microsoft's new CFO

(Credit: Microsoft)

Microsoft Chief Financial Officer Chris Liddell is leaving the company at the end of the year, the company announced Tuesday.

Liddell has been Microsoft's CFO since 2005, but the past 18 months have been especially long, as Microsoft debated whether to acquire Yahoo and navigated the choppy waters of the recession with its first-ever companywide layoffs. He will be replaced by Peter Klein, who had been serving as CFO of the company's Business Division, which develops and sells Microsoft Office.

In a statement, Liddell said he was looking to do something with his career beyond serving in the chief finance role.

"Chris and his finance team have accomplished a great deal over the past four and a half years. The team is deep and strong, and has an excellent record of building value for our shareholders," CEO Steve Ballmer said in prepared remarks distributed by Microsoft.

As of the close of Tuesday's stock market, the value of Microsoft's stock had increased by 18 percent since Liddell made his debut as CFO.

This story was clarified on Wednesday to reflect that the layoffs referenced above were Microsoft's first companywide layoffs. In the past, the company has cut jobs in specific units.

Last week, Microsoft showed off some browser technology that could help Internet Explorer leapfrog the competition. But if Mozilla succeeds in its hope, Microsoft could be playing catch-up instead.

The technology in question is hardware-accelerated graphics and text using interfaces called Direct2D and DirectWrite that provide an easy way to use graphics cards' computing power. They're built into Windows 7, and Microsoft is bringing them to Windows Vista but not Windows XP.

The performance boost from Direct2D and DirectWrite was the centerpiece of Microsoft's demonstration of Internet Explorer 9 goodies shown last week. Online maps flashed on the screen quickly and tracked mouse movements responsively; text was clearer and changed sizes more gracefully.

But the day of Microsoft's demo, Mozilla evangelist Chris Blizzard had this to tweet: "Interesting that we're doing Direct2D support in Firefox as well--I'll bet we'll ship it first."

There's work to back up his rhetoric. On Sunday, Bas Schouten, the programmer who's been leading the work for Mozilla, posted a prototype of Firefox using the Direct2D and DirectWrite.

However, any Firefox fans tempted to crow about a victory should be cautious. Mozilla wouldn't commit to including the technology, much less to a release schedule such as Firefox 3.7 due in the first half of 2010. "We are currently investigating Direct2D for Firefox, but do not have a target for shipping it in Firefox at this time," the organization said in a statement..

Several Web pages arrive significantly faster using Direct2D rendering technology in Firefox.

(Credit: Bas Schouten)

The race is on
Microsoft declined to comment for this story, referring readers just to last week's blog post about coming Internet Explorer 9 features. "While we're still early in the product cycle, we wanted to be clear to developers about our approach and the progress so far," the company said while sharing a Direct2D demonstration video.

There's no doubt the race is on, though, given the potential benefits of the new interface and the commercial success of Window 7. Microsoft is lighting a fire under its developers, but the company's browser has lagged Firefox and other rivals in many technological areas for years, and many Web developers loathe earlier versions of IE still widely used. IE's market share has steadily eroded, though it remains dominant overall.

The attention is giving Google ideas, too. In a Chrome issue logged Sunday, Chrome programmer Peter Kasting pointed to Schouten's blog post on the subject as "motivation."

"If we can speed up the rendering time, the most noticeable benefit will probably be smoother-feeling scrolling," Kasting said. He also directed attention in October to DirectWrite support in Chrome, though cautioning that it might not work with the browser's present "sandbox" design to isolate elements of the browser for security reasons.

Mozilla has its own results to show off, too. Schouten offered a graph showing improved performance displaying a variety of Web pages. Facebook, Google, and Twitter rendered on the screen in half the time using the Direct2D; Slashdot and a Wikipedia entry were barely changed. One taxing page using the Scalable Vector Graphics format (SVG) to show movable, resizable graphics showed more than twice as fast, dropping from about 11 milliseconds to less than 4 milliseconds.

Microsoft's DirectWrite permits smoother display of many fonts.

(Credit: Microsoft)

What actually changes?
Direct2D replaces an older technology called Graphics Device Interface (GDI) used in Windows XP. Both offer a way for programs to tap into computing hardware without having to worry about the particulars of video card capabilities and settings, but Direct2D taps into hardware acceleration features.

The technology lets programmers control basic elements such as transparent boxes, curved lines, and resizable photos. Out of these, user interface elements are constructed; Direct2D calls upon a computer's graphics processor to speed that up. It's particularly helpful for dynamic situations that change element properties such as color, size, or opacity.

DirectWrite offers a similar graphics chip boost to the task of displaying text. That may not sound computationally intense, but some parts of it are. In particular, DirectWrite offers a more sophisticated mechanism for displaying text to take advantage of something called sub-pixel positioning of letters.

Each pixel on an LCD screen is actually made of three tiny slices--for red, green, and blue components--and sub-pixel technology subtly draws letters using pieces of these pixels to make the overall appearance smoother. The older GDI permitted some sub-pixel positioning, but only smoothed letters in the horizontal direction; DirectWrite smooths curves vertically as well.

Using the graphics chip in Direct2D and DirectWrite operations brings several advantages. Performance is the first: some operations are faster or smoother, and having more power on hand lets programmers tackle more ambitious projects. Second, the general-purpose central processor, relatively inefficient at handling graphics tasks, is unburdened, freeing it up for other tasks and saving battery power.

Firefox already has a graphics system of its own called Cairo. Schouten has been adding a Direct2D and DirectWrite.

Firefox is of course a browser that doesn't just work on Windows. The DirectWrite technology helps that operating system catch up to its rivals, said Mozilla's John Daggett in a blog post Sunday. "Platform APIs [application programming interfaces] on Mac OS X and Linux already do a good job rendering Postscript CFF [Compact Font Format] fonts," he said. "This just brings them up to parity under Windows 7."

Direct2D is used elsewhere in the browser. "We've made significant progress and are now able to present a Firefox browser completely rendered using Direct2D, making intensive usage of the GPU," or graphics processing unit, Schouten said. And because Cairo is used by other open-source software, other projects will benefit from the work, he added.

The Direct2D work is Mozilla's second hardware acceleration effort; the company also is working on one using a different hardware acceleration interface called OpenGL for mobile devices using Nvidia's Tegra chips, according to Mozilla.

This Mozilla demonstration of photos and Scalable Vector Graphics (SVG), with transparency and click-and-drag resizing, works more than twice as fast Direct2D graphics.

(Credit: Screenshot by Stephen Shankland/CNET)

The interactive Web
Microsoft went out of its way to emphasize that the Direct2D and DirectWrite work will help existing Web pages without programmers having to change a line of code. Dean Hachamovitch, general manager of Internet Explorer, contrasted that to other hardware acceleration efforts including Native Client and O3D from Google and WebGL from Mozilla and the Khronos Group.

Native Client, O3D, and WebGL are part of a long list of developments designed to transform the Web into a foundation not just for static pages but also for interactive applications. Those technologies, though, require new programming skills and tools.

Mozilla, Google, Apple, and Opera have been pushing this interactive Web agenda, and Microsoft is showing signs of interest, too. However, for now, Microsoft emphasizes that Direct2D support will help the existing Web. But the browser makers have their eyes on interactive technology as well. Direct2D will help with complex sites that use 2D graphics interfaces such as SVG and Canvas, Mozilla said.

Added Schouten, "As Web sites become more graphically intense, dynamic graphics will start playing a larger role, especially in user interfaces."

Steven Sinofsky may not be talking about Microsoft's future Windows plans, but the Windows Server team appears to see more value in letting customers know its road map.

In at least two slides apparently shown at the Professional Developers Conference in Los Angeles this week, Microsoft suggests that a major release update to Windows Server is due around 2012, with one of the slides confirming the Windows 8 code name.

I've asked both the desktop and server teams for more context on the slides, which were noted this week by blogger Stephen Chapman. A similar slide cropped up--that time in Italian-- in August.

For his part, Sinofsky sat completely stone-faced when I asked him in our interview Wednesday where Microsoft was at relative to Windows 8--later noting that he hadn't even used the word Windows next to the numeral 8.

"I didn't say any of the words--Windows 8--those were all your words," he said

The 2012 time frame would roughly coincide with Windows Server's plans of having a minor release every two years or so and a major release every four years. It released Windows Server 2008 R2, a minor update, earlier this year as the desktop team released Windows 7.

In recent years, Microsoft has tended to line up its desktop and server releases fairly closely, although in this case the desktop OS was probably a more significant release than its server counterpart.

LOS ANGELES--While some have criticized Steven Sinofsky for being tight-lipped, the Windows boss insists that he is being prudent, not secretive.

"Everybody wants to know what's coming and what's next." But, he said, talking too soon, too early is actually a bad thing that just leads to frustration.

"You reacting to some nightly developer build isn't really productive to anybody," Sinofsky said in an interview at this week's Professional Developers Conference.

Sinofsky says that people don't want to show up to a restaurant and watch a potato being peeled and taste it half-cooked. For the same reason, he prefers to not talk about things until they are well, fully baked.

"It's hard to imagine what else you want to see while it's in progress," Sinofsky said. "I don't want to see the daily cuts of a movie. I want to see what the director thought at the end."

As a result, Microsoft didn't show Windows 7 until last year's Professional Developers Conference, just a year before the product was released. That's in sharp contrast to the prior version of Windows, which was first shown as Longhorn back in 2003. It ultimately suffered through numerous delays and significant changes before being released as Vista.

Windows boss Steven Sinofsky said his Windows philosophy boils down to a single word--responsibility. "There's not another project in software to work on that a billion people use and we take that really, really seriously."

(Credit: Ina Fried/CNET)

From early indications, Sinofsky would appear to be on to something. While Vista was largely panned by critics and shunned by businesses, Windows 7 has thus far had strong early sales and gotten high marks from reviewers.

It's some of the same philosophy Sinofsky took in his earlier days, when he led development of Microsoft's Office franchise.

"Normal people have stuff to do," he said.

That's also why he doesn't really look for public feedback until the software is largely done.

"We don't want feedback on a screenshot," he said.

Sinofsky shifted from Office to Windows in March 2006 and earlier this year added responsibility for the business side of Windows as well, becoming the unit's president.

He said his philosophy toward Windows really boils down to a single word--responsibility. "There's not another project in software to work on that a billion people use and we take that really, really seriously in the hallways of our dev team," he said.

Sinofsky also isn't one to be swayed by emotional arguments for or against a feature. If you want his attention--show him the numbers. He said he wants feedback, but he wants that feedback to "be based on data and not assertions or opinions or anecdotes."

During his PDC talk on Wednesday, he referred to the other approach as "testosterone-based engineering."

"It turns out we did a lot of things by that method," Sinofsky said. Often times, decisions on which features to include in the next version of a product were made that way. People, Sinofsky said, would basically just ask their friends.

"Let me get this straight," Sinofsky said. "You are going to ask your 10 friends who all go to Fry's and build their own gaming machines and that's going to be the way we decide which features go in the product?"

That, he said, "seems a little homogeneous. It seems a little limited in its reliability."

But these days, Microsoft has a better option, gathering lots and lots of data from real-world use. Quite often, he said, the data will show things that might not be intuitive to Redmond's engineers.

As an example, he showed a graph at the conference that showed the huge variety of graphics resolutions that Windows users were operating at, including a significant number with VGA-resolution displays. Folks in Redmond initially assumed they didn't really need to worry about such low-resolution screens.

True to form, Sinofsky was emphatically silent when my questions drifted toward the future. I asked whether we might see a beta of Internet Explorer 9 at Mix and he literally just sat there silent until I asked the next question.

Later on in the interview, the mere mention of Windows 8 got the same stone-faced glare.

"I won't ask you what's in Windows 8, but can you talk at all (about it)? You mentioned that you are a few weeks into designing IE 9," I said. "Are you a similar amount into Windows 8?"

Silence. More silence.

"I didn't say any of the words--Windows 8--those were all your words," he said. "Next."

Sinofsky did have some interesting things to say when I asked for his take on competitors like Google and Apple.

"You have to take it very seriously," he said of the competitors. "That's always, always true in the software world. In the software world it doesn't take a lot to have a dramatic shift in how people perceive you or how they act. It's just very important no matter what your perceived or real or measured share is at one moment, it doesn't take a lot to change it down the road."

Windows 7 isn't just getting good reviews, it's also selling well, CEO Steve Ballmer told shareholders Thursday.

Delivering opening remarks at Microsoft's shareholder meeting, Ballmer said that Windows 7 was off to a "fantastic start."

"We've already sold twice as many units as any OS in a comparable time frame," Ballmer said. "Windows 7 is simply the best PC operating system that we or anyone else has ever built."

Microsoft CEO Steve Ballmer delivers a point at the company's Worldwide Partner Conference in July.

(Credit: Microsoft )

By last week, Windows 7 accounted for 4 percent of Web-accessing devices, according to Net Applications; it took Vista more than seven months to reach that level.

Addressing the overall economy, Ballmer reiterated that things seem to have stabilized.

"The economy has, at least for now, leveled off," he said.

The meeting is still going on and has just entered the question-and-answer session and I'll update this post if anything interesting comes up. So far, though, it's been mostly about local and legislative matters, rather than technological issues.

Microsoft vs. Apple
There was one fun one from a shareholder who noted that young people tend to gravitate toward Macs and that Apple seems to be outmarketing Microsoft.

"You've got a real bad image out there," the shareholder said. "You sure don't have that younger generation."

Ballmer acknowledged that there are "certainly always opportunities for improvement."

"We all watch television," he said.

That said, Ballmer noted that "96 times out of 100, worldwide, people choose a PC with Windows."

He added that even in the toughest market--the high end of the U.S. consumer market--Windows is chosen 83 times out of 100.

"That doesn't let us rest on our laurels," Ballmer said. "Apple has picked up a couple tenths of a percent of market share."

But those couple tenths matter, he agreed. He said the downturn in the economy has actually bolstered Windows' competitive position. "People understand that Macintoshes are quite a bit more expensive."

Another questioner asked why Microsoft can't better compete against Apple's iPhone and other smartphones.

"Certainly our objective is to have the leading position," Ballmer said. "I think we have a lot of opportunity to improve...Undoubtedly we've got our work cut out for us."

He did say that Microsoft has put a lot of smart people on the task.

"We've got our heads down to do our best," Ballmer said.

LOS ANGELES--As a software guy, Windows division president Steven Sinofsky readily admits that he had little idea of all that goes into building a laptop.

Like many at Microsoft, he tended to think of products as done once the software was finalized. During the past couple of months, though, he has gotten a much better idea, as his Windows team went through the process of designing and building a Windows 7 laptop in conjunction with Acer.

Steven Sinofsky, surprised the PDC crowd on Wednesday, announcing that paid attendees would get a free notebook that Microsoft helped design.

(Credit: Ina Fried/CNET)

That laptop made its debut on Wednesday, as Microsoft handed out the devices to paid attendees of the Professional Developers Conference here. It's quite a little laptop, built around an 11.6-inch swiveling touch screen that works as either a tablet or traditional notebook.

Sinofsky wanted to give attendees at this week's PDC a computer that would really show off Windows 7's capabilities, including a touch screen and top-of-the-line wireless. Oh, and it should be light. And have a glossy screen. And not cost too much.

"They look at you like, 'what are you building'?" Sinofsky said in an interview with CNET.

Sinofsky said it's kind of like remodeling a kitchen. "You start off by saying I want these cabinets this counter top and this kind of a sink and all of a sudden you've got this kitchen you can't afford and don't have the time to build. That's pretty much the first phase of building a laptop."

In the end, Sinofsky had to make a few compromises, but the process itself was an important one for the Windows team, Sinofsky said. While PDC attendees got the laptops, his team got a better appreciation for the full process of designing and building a Windows PC.

"That was part of the learning, really making sure we can walk in their shoes," Sinofsky said.

The Windows team quickly learned about some of the trade-offs that computer makers have to make, as well as some of the hidden costs. At one point, Sinofsky said, he wanted to cut out Bluetooth in order to add GPS capabilities.

There were two problems with that, though. First, taking off Bluetooth would actually cost money. It was already part of the wireless chipset and the standard chassis had a blue indicator light built-in already, meaning that it would cost more to cover up that light.

Unboxing the free PDC laptop (photos)

And with Sinofsky's ideal laptop already containing multiple flavors of Wi-Fi, Ethernet, wide-area networking and three audio paths, there just wasn't room for GPS.

"They were like, look we're running out of room here," Sinofsky said.

Other things Sinofsky did get. Although most laptops with touchscreens have matte finishes, Sinofsky said "We really wanted a glossy screen."

Sure enough, the PDC has a glossy touchscreen.

That's just a part of what Sinofsky talked about in our interview on Wednesday. Look for more from our chat in the coming days.

With Internet Explorer 9, Microsoft showed Wednesday it's trying to retake the browser initiative.

IE remains the Net's dominant browser. But perversely, it became something of a technology underdog after Microsoft vanquished Netscape in the browser wars of the 1990s and scaled back its browser effort.

That left an opportunity for rivals to blossom--most notably Firefox, which now is used by a quarter of Web surfers, but also Apple's Safari, which now runs on Windows as well as Mac OS X, and Google's Chrome, which aims to make the Web faster and a better foundation for applications.

Microsoft has been pouring resources back into the IE effort, though, and at its Professional Developers Conference in Los Angeles, some fruits of that labor were on display. In particular, Windows unit president Steven Sinofsky showed off IE 9's new hardware-accelerated text and graphics.

The acceleration feature takes advantage of hitherto untapped computing power in a way that's more useful than other browser-boosting technology--Google's Native Client to directly employ PC's processor and Mozilla's WebGL for accelerated 3D graphics, for example--according to Dean Hachamovitch, general manager of Internet Explorer.

"This is a direct improvement to everybody's usage of the Web on a daily basis," Hachamovitch said in an interview after Sinofsky's speech. "Web developers are doing what they did before, only now they can tap directly into a PC's graphics hardware to make their text work better and graphics work better."

A friend pointed out to me the similarity between Microsoft's icon set for the new Office 2010 beta and Adobe's icons for its Creative Suite. Looking at the two sets, it's clear that they are alike in some ways, but that Adobe has gone for the more graphically "pure" design while Microsoft has favored a busier image.

New icons from the Microsoft Office 2010 beta on the left, and Adobe's program icons, introduced two years ago in CS3.

(Credit: Screenshot by Seth Rosenblatt/CNET)

Microsoft's icons retain the rounded edge introduced in the 2007 version, but the introduction of the single, graphically recognizable letter is an obvious nod to Adobe. Ignoring the size discrepancies in my screen capture above, what seems to make Adobe's icons pop off the screen more than the cleanness of the image are the color choices: Adobe's orange and red are more vibrant than the muted shades for Microsoft Office. However, the darker bottom of Adobe's darker-colored icons doesn't seem to play well with the solid-black lettering. In contrast, Microsoft's decision to give the letters gradient shades makes the icons softer, but they appear to stand out more from a cluttered field.

With the larger taskbar in Windows 7, though, the icons may stand out enough anyway. How important do you think icon design and choice is to your software? Let us know in the comments.

LOS ANGELES--Microsoft announced on Wednesday that the beta of Office 2010 is now publicly available from the company's Web site and from CNET Download.com.

Among the features new to the beta is a social networking connector that allows users to bring in Windows Live and other social networking feeds into Outlook. LinkedIn is the first that will take advantage of it--early next year--but there is a software development kit for others to do so.

"I hope that you will all download it," Microsoft senior vice president Kurt DelBene said at Microsoft's Professional Developers Conference here.

Microsoft has posted an article noting that Office Mobile 2010 is also in beta and available for Windows Mobile 6.5 phones via the Windows Mobile Marketplace.

The public beta also includes the ability for businesses to start testing the browser-based Office Web Apps within their enterprises. The beta versions, unlike the technology preview of the Web Apps includes editing in Word as well as the OneNote Web app.

The consumer version of the Web apps, however, remains in technology preview in Windows Live. There's no specific timeframe for when the Office Web Apps will hit Windows Live.

Office 2010 is due out in final form in the first half of next year.

The company is talking more about Office 2010 as part of the Professional Developers Conference keynote that is still taking place. Click here for CNET's live blog of that talk.