Beyond Binary

When Microsoft announced the Windows 7 Family Pack option, it said that the three-user bundle of Windows 7 Home Premium would be available only for a limited time.

That time, it appears, is drawing to a close. As noted by WindowsITPro, supplies are drying up fast.

"The Windows 7 Family Pack was introduced as a limited time offer while supplies last in select geographies," Microsoft said in a statement. "Response has been very positive and in some cases, the offer has sold out. "

The company wouldn't say how many copies have sold or how many it allocated for the family pack option. It also said it has no current plans to extend the offer.

Microsoft's own online store appears to be sold out, though those in Orange County, Calif. or Scottsdale, Ariz. could check out the retail spots.

Amazon itself is sold out, although some other sellers are offering it on Amazon's site, but at prices well above its suggested price.

Computer users had been asking Microsoft since the days of Vista and longer to offer a discount to those trying to outfit more than one PC with the latest version of Windows. Microsoft finally confirmed in July that it would have a family pack option.

When it announced full details later that month, though, Microsoft said that the $149 package would be available "while supplies last." At the time I pressed them for more details and the company would not say how many copies it planned to sell nor how long the offer would last.

Apple, by contrast, has offered its Mac OS X family pack since 2002. That version covers up to five computers in a household.

Microsoft said that a configuration change that was mistakenly moved from testing onto the live Bing.com site was to blame for an outage Thursday that left Microsoft's search engine completely inaccessible for more than half an hour.

A Microsoft representative told CNET on Friday that the problem appears to have come when something being tested was moved onto the live site.

"A configuration change was mistakenly propagated to production from staging," the representative said. "It was supposed to stay in the test environment--it was a mistake."

In a blog posting that went up late on Thursday night, Microsoft Senior Vice President Satya Nadella said that a change made during testing had "unfortunate and unintended consequences."

"As soon as the issue was detected, the change was rolled back, which caused the site to return to normal behavior," Nadella said. "Unfortunately the detection and rollback took about half an hour, and during that time users were unable to use bing.com."

And here I thought Microsoft was just trying to be energy efficient by running Bing only 23 hours a day.

Nadella said that Microsoft is exploring what went wrong to make sure it doesn't happen again. The outage came just a day after Microsoft announced a variety of changes to Bing, including added detail for some results and improved mapping tricks.

On the plus side, though, as ZDNet colleague Larry Dignan pointed out, at least people noticed there was an outage. It's all about mindshare, right?

In what could be a blow to its image, Microsoft's main Bing search site suffered through an outage on Thursday evening.

Visitors to Bing.com were getting a browser error message rather than a search bar. Service was down for at least 45 minutes before being restored around 7:10 p.m. PST.

Microsoft acknowledged the issues on its Twitter feed and said it was looking into the matter. It later offered the following explanation, posted to a Bing blog by Satya Nadella, senior vice president of the Online Services division:

The cause of the outage was a configuration change during some internal testing that had unfortunate and unintended consequences.

As soon as the issue was detected, the change was rolled back, which caused the site to return to normal behavior. Unfortunately the detection and rollback took about half an hour, and during that time users were unable to use bing.com.

We strive to maintain a high standard of operational excellence at Bing. We are running a post mortem to find out how our software and processes need to be improved to prevent anything like this from happening again.

A Microsoft representative did not immediately return an e-mail seeking comment.

The outage comes after a big week in which Microsoft announced new search abilities for Bing as well as improved mapping.

Updated at 7:13 p.m. PST to reflect site's return. Updated at 11:13 p.m. PST with Microsoft statement.

SAN FRANCISCO--Although Microsoft would rather everyone ran out and bought a Windows Mobile phone, the software maker is aware of reality. And, since it wants people to use Bing on their phones, it knows it needs to have software that works on other devices.

"Everyone understands the popularity and the pervasiveness of the platform," said Microsoft principal group program manager David Raissipour, following a Bing event Wednesday. "We are actively working on it."

Raissipour confirmed Microsoft is working on a mobile Bing application that will combine a number of features--more than just mapping and search. However, he declined to say what all of those features are or when the software will be ready.

I probed as to whether some of the cool mapping technology Microsoft showed on Wednesday might make it onto phones. Raissipour said such mapping requires a rich platform, but could potentially be done without Silverlight, if necessary. So, what about the iPhone?

"It's certainly possible," Raissipour said. "That's a rich platform."

Microsoft already has native mobile applications for many Windows Mobile phones, BlackBerry devices, and a number of Verizon feature phones. The company is also exploring what it might be able to do on Android, particularly on non-Google branded Android devices. In the meantime, the company has its mobile m.bing.com Web site.

I also had a chance to catch up with overall search engineering chief Satya Nadella to ask some overall Bing questions.

In particular, I wanted to see just how many people are actively choosing to go to Bing.com, as opposed to just searching via MSN or a browser tool bar. With Bing's predecessor, Live Search, very few people actually went to the Live.com page.

"It's still a small percentage," Nadella said, but noted that it has succeeded in getting a fan base, which was a key early goal of the product.

When it comes to the data that Microsoft is including at the top of some search results, in general, Nadella said Microsoft is not paying for the content, nor are companies paying to get their information included.

The benefit to Microsoft is that it displays more useful results while content providers get a link high up in the results page. "It's kind of like SEO [Search Engine Optimization] for structured data," Nadella said. As for those new mapping abilities, I encourage you to check them out for yourself and read . In addition, though, here's a video I did with Microsoft's Blaise Aguera y Arcas, where he walks through the new features.

Although Microsoft and Yahoo have only just inked their final search deal and still need regulatory approval, Microsoft's Yusuf Mehdi talked on Tuesday about the economics that the deal will bring.

Speaking at a Credit Suisse technology investor conference in Arizona, Mehdi said that both Microsoft and Yahoo should see a double-digit increase in revenue per search, once the two companies have a single paid search system.

Putting their two separate paid search systems together will take longer than just setting up Yahoo to use Bing's algorithmic search.

"That is going to take some time," Mehdi said in the speech, which was Webcast on Microsoft's investor site. Just closing the deal has taken quite awhile. There was the months of talks of an outright acquisition, then the eventual search deal announced in July, and then several more months spent ironing out the final details.

Now Microsoft is waiting on regulatory approval on the deal, but Mehdi said he remains optimistic that it will get the nods it needs in time to close the deal early next calendar year.

The integration is also going to be expensive Mehdi acknowledged, reiterating a past estimate that Microsoft will spend $100 million to $200 million in transition costs during the first year. Mehdi said the company has not said how much it expects to spend in the second year, but said that after that, the deal should be a boon to Microsoft's financial results.

As for Bing, Mehdi said executives are pleased with the results for its first six months, citing ComScore U.S. search query market share figures that show Microsoft growing from 8.4 percent to 9.9 percent over that period. That said, Mehdi acknowledged that "we have a very long ways to go against a tough competitor."

Several Microsoft executives will be in San Francisco on Wednesday to talk about some new moves in search, including some developments in mobile and mapping. Google, meanwhile, is planning a search event of its own on Monday.

Microsoft said Tuesday that its investigation has turned up no evidence that anything in its November security updates should be causing users to encounter a so-called "black screen of death."

"Microsoft has investigated reports that its November security updates made changes to permissions in the registry that that are resulting in system issues for some customers," Microsoft security response communications lead Christopher Budd said in a statement. "The company has found those reports to be inaccurate and our comprehensive investigation has shown that none of the recently released updates are related to the behavior described in the reports."

Microsoft said it was not contacted by British security firm Prevx before that company went public with its claims. Microsoft said it has reached out to them to let them know the results of its investigation.

The company said on Monday that it would look into the matter, but issued an update later in the day saying it could not verify any issues.

"Our support organization is also not seeing this as an issue," Budd said on Tuesday. "The claims also do not match any known issues that have been documented in the security bulletins or (knowledge base) articles.

Update, 3:15 p.m. PT: Prevx posted an updated blog saying that it has done additional testing.

"Having narrowed down a specific trigger for this condition we've done quite a bit of testing and re-testing on the recent Windows patches," the comapny said. "Since more specifically narrowing down the cause we have been able to exonerate these patches from being a contributory factor."

The company also offered up a mea culpa to Redmond and said it also recommends users keep patching their systems promptly. "We apologize to Microsoft for any inconvenience our blog may have caused."

Borrowing a tactic it has used to tout Internet Explorer, Microsoft on Tuesday launched a music tie-in to help promote Windows 7.

Dubbed Section 7, the site offers discount concert tickets and is being done in conjunction with music promoter Live Nation. Among the things the site features are $7 concert tickets and $7 merchandise for select artists.

"Section 7 offers music lovers a host of insider benefits, including exclusive ticket buying options, discounts, and opportunities to meet their favorite artists, fan clubs, great deals on tickets, merchandise and more," Microsoft said in an e-mail.

The first 37,000 people who sign up also get a voucher for a free pair of tickets to a concert at a Live Nation club or theater.

Microsoft says it is trying to "simplify the music experience one concert at a time." That seems a stretch, but hey, free concert tickets sounds pretty good. Locations are limited, though, so not everyone will have a local option.

MISSION VIEJO, Calif.--On my way to last month's Professional Developers Conference in Los Angeles, I took a small detour to Orange County to check out the recently opened Microsoft Store there.

Although I had heard plenty about Microsoft's nascent retail effort, I wanted to get a firsthand look.

At a glance, it's easy to understand why the store draws so many comparisons to Apple's stores. The outside of the store features an expansive glass window with a stylized Microsoft logo at the top. Inside, products are sorted into themed sections, with a help desk and theater in the rear, and all around are T-shirted enthusiasts ready to answer any and all questions.

From that standpoint, it's nearly a carbon copy. But even as it mimics much of the Apple approach, Microsoft finds ways to customize its message to its different role in the world. When it comes to laptops, for example, Microsoft is eager to lay out dozens of choices to highlight the variety of prices, sizes, and options available to those buying Windows.

The company is starting small--opening just two stores so far, this one and another in Scottsdale, Ariz. The goal, Microsoft said, is to better understand what customers want at retail and, ideally, persuade larger retail chains such as Best Buy and Office Depot to adapt some of the more successful techniques to their stores.

Apple, by contrast, has become its own most significant channel with its online and retail stores, even though its computers and iPods can also be found at places like Best Buy. From a dollars perspective, Apple's retail stores alone accounted for $1.87 billion of the company's $9.87 billion in total revenue during the most recent quarter. Next year alone the company plans to open 40 to 50 stores, with more than half of them overseas.

But if its scale is different than Apple's, its goal is largely the same: to offer the best possible experience when buying its flavor of PCs and accessories, as well as to be, well, cool.

To that end, Microsoft has pulled out every tool in its arsenal, from PCs to phones to the Xbox 360, as well as a huge "video wall" made up of dozens of 42-inch flat screens connected to form a single, though constantly changing, image or video display.

But by far the biggest draw is a product that isn't even for sale--the Surface tabletop computer.

During the several hours I spent at the store, it was that device, more than the laptops, that drew people in and captured their attention.

Josh Griffin stopped in at the store with his three kids, with all four quickly heading to the Surface.

"This is cool," said Griffin, who came into the store to check out Windows 7 among other things. "I've read about Surface before, but never been able to see it. It's actually a little cooler than I thought it would be."

The three kids began carving virtual pumpkins on the Surface while we chatted, but eventually Griffin turned his attention back to the tabletop computer.

"Can I do one?" Griffin asked his kids, trying only somewhat successfully to elbow his way in.

Surface, though, isn't the only thing worth pointing out.

Microsoft has taken an interesting approach to selling PC software--the category it is best known for. Although Microsoft stocks dozens of software products on its back shelves, hundreds more titles are available on-demand. Customers can browse on a touch screen through the various options and once they select a product, it can be burned to disc in the back of the store, complete with a professional-looking disc label, DVD case, and manual.

"We're like legal pirates," said Steven Precious, COO of Tribeka, the company whose system Microsoft uses in its stores. Precious just happened to be checking in on the Mission Viejo store while I was there.

The software maker also uses its position as retailer to influence what software is loaded onto the PCs it sells. While Microsoft the operating-system vendor is required by antitrust decrees to allow computer makers to install whatever software they wish, Microsoft the retailer is allowed far more say.

As a result, PCs sold at the Microsoft Store come with what Microsoft calls its "signature" software collection--a bundle that includes Windows Live products, Zune jukebox, Bing search engine and Microsoft Security Essentials antivirus software.

Having its own stores also allows Microsoft to try to match other areas in which Apple benefits from its direct contact with consumers, such as offering in-store support. Where as Apple has its "genius bar," Microsoft has an "answers desk." Both Apple and Microsoft offer a theater in the back for various trainings.

Microsoft is also trying to match Apple's passionate workforce. The retail store employees are made up of Windows enthusiasts, some of whom moved across the country to work at a Microsoft store. As evidenced by a recent YouTube video, the staff can be accused of many things, but a lack of passion is not one of them.

One of the key questions in my mind, though, is whether business will be brisk enough to allow Microsoft to profitably operate. The software maker has said it intends to run its stores as a business, meaning that to expand well beyond its current two locations, it will need to show an ability to not just look pretty, but also make money.

Correction: An earlier version of this story incorrectly reported the amount of revenue Apple gets from its retail and online stores. Apple got $1.87 billion in revenue last quarter from its retail stores alone; the company does not break out sales from its online Apple store.

Microsoft said on Monday that it is looking into reports that its latest security updates are causing some serious problems for certain users.

The problem has been dubbed the "black screen of death" because those affected are left with a black desktop and little else on their screen.

"Microsoft is investigating reports that its latest release of security updates is resulting in system issues for some customers," the software maker said in a statement. "Once we complete our investigation, we will provide detailed guidance on how to prevent or address these issues. "

The issue was noted by British security firm Prevx on its blog on Friday, with that company also offering a suggested fix for the problem.

"The symptoms are very distinctive and troublesome," Prevx said. "After logging on there is no desktop, task bar, system tray or sidebar. Instead you are left with a totally black screen and a single My Computer Explorer window."

Prevx suggested that the black screen issue can occur on a wide range of Windows machines from Windows NT through Windows 7. In its blog, Prevx said there appear to be many causes of the black-screen issue, not all of which are related to the security update.

"In researching this issue we have identified at least 10 different scenarios which will trigger the same black screen conditions," Prevx said. "These appear to have been around for years now." As for the latest security update, Prevx said changes to the way registry keys are handled appears to be the reason it is causing black screens.

I've asked Microsoft what it recommends users should do for now and will post its answer here.

Microsoft released its latest security updates on November 10, issuing six bulletins addressing 15 flaws.

Update, 3:35 p.m. PT: A Microsoft representative said that the company continues to recommend that customers "test and deploy" the November security updates.

"Based on our investigation so far we can say that we're not seeing this as an issue from our support organization," the representative said. "The issues as described also do not match any known issues that have been documented in the security bulletins or (knowledge base) articles."