2005 not business as usual
for Microsoft
In 2005, it was hardly business as usual for the world's largest software maker.
Microsoft moved closer to shipping the long-anticipated updates to its flagship Windows and Office products. But the company's strategic focus shifted toward a new industry model--Web-based services--and an increasingly dangerous new competitor: Google.
References to Google and a budding rivalry were clearly evident in comments made by Chairman Bill Gates and CEO Steve Ballmer. Where once Microsoft lavished its greatest attention on rivals like IBM and Sun Microsystems, now Google, Salesforce.com and a growing number of open source companies--and the technology model they represent--are Microsoft's prime concerns.
Evidence of those worries surfaced in October, when Microsoft announced a sweeping reorganization that emphasized the growing importance of online services delivered via the company's MSN unit.
As part of the restructuring, Ray Ozzie, who earlier in the year came to Microsoft through the acquisition of Groove Networks, was tasked with driving the move toward services. Ozzie's ascendancy was confirmed in November when a call-to-action memo detailing the company's services plan--later amplified in an all-hands memo by Gates himself--became public.
Microsoft in November announced its initial foray into services with two offerings, Windows Live and Office Live, to augment the company's cornerstone products. A similar plan linked to server software has also begun to take shape.
When Microsoft wasn't battling Google in the marketplace, it was combating the company in the courtroom. The two companies engaged in a highly publicized legal spat over Kai Fu Lee, a former Microsoft researcher who defected to Google.
There were many moves on the personnel front in 2005. Leading the list: Jim Allchin, a top company executive and the man behind Windows for the past 15 years. Allchin will retire at year's end.
In August, Microsoft announced the hire of a new COO, Kevin Turner, a former Wal-Mart executive. And reverberations continued from October's reorganization. In December, the company said it was retooling its entertainment division.
On the product side, an update to Microsoft's client version of Windows, developed under the Longhorn code name and now officially called Vista, inched toward release next year. Microsoft also began testing a new file system, originally intended as part of Longhorn but now expected to debut separately.
Office 12, an ambitious update of one of Microsoft's most profitable products, entered beta testing in November with a final release due next year. At the same time, a closely watched drama was playing out in the Commonwealth of Massachusetts, where state agencies debate whether to ditch Office for software based on the OpenDocument format. And Microsoft submitted its own 1,900-page document to an Ecma committee to standardize Microsoft Office document formats.
SQL Server 2005, a long-awaited new version of the company's database software, finally debuted in November alongside a revamped Visual Studio tools bundle.
On the server front, Microsoft shipped an update to Windows Server 2003 as promised, but said a high-end version, aimed at supercomputer-class applications, remains in beta testing.
In the security area, the Zotob worm slammed Windows 2000 systems in August, disrupting business at companies including CNN, the New York Times and DaimlerChrysler. Zotob exploited a serious flaw in Windows and appeared only days after Microsoft released a fix for the bug.
On the product side, Microsoft released test versions of software to help consumers fend off spyware and viruses, called Windows AntiSpyware/Windows Defender and OneCare. It is also eyeing the enterprise market, with a new product, code-named Microsoft Client Protection, expected to debut in 2006.
--Mike Ricciuti
2005 Highlights
Lawsuit is response to defection of Kai-Fu Lee, who has been focusing on new search technologies for Redmond.
July 19, 2005
Microsoft gives the oft-delayed operating system an official name, and says a test version is on track for release next month.
July 22, 2005
Network worms are shutting down computers running Windows 2000, security experts warned.
Aug. 16, 2005
Papers in a case involving Google's hiring of a Microsoft exec say Microsoft's Ballmer vowed to "bury" Google's Eric Schmidt.
Sept. 2, 2005
Mirroring efforts at Google, Yahoo and elsewhere, software maker to offer developers tools to build online applications.
Sept. 8, 2005
Growing clout of Web-based development is much in evidence as Microsoft courts developers. But is Bill Gates losing sleep? Nah.
Sept. 13, 2005
Company creates three divisions with presidents in charge and focuses on hosted services.
Sept. 20, 2005
Search giant's expanding roster of Windows-free Web services may be factor in shuffle. Software on demand is an issue too.
Sept. 20, 2005
Ten years ago, execs feared the Internet could become a software platform that threatens Windows. They were right.
Sept. 23, 2005
State finalizes policy calling for desktop applications supporting OpenDocument standard format. Microsoft Office is excluded.
Sept. 23, 2005
The software maker releases an update that adds an improved version of Internet Explorer 7 and other features.
Oct. 17, 2005
Microsoft's chairman launches Web-based tools tied to its Windows and Office products.
Nov. 1, 2005
Analysts say Redmond's push into services is needed--but it risks rendering obsolete the company's ultra-profitable way of doing things.
Nov. 1, 2005
Software giant gives selected testers the first look at the next version of the ubiquitous desktop suite.
Nov. 16, 2005
Behind the headlines:
Ozzie memo: Internet services disruption Gates memo: Brace for services wave Microsoft eyes ads as consumers close wallets Microsoft eyes making desktop apps free Microsoft's big bang could be its last Microsoft shuffles execs as reorg continues Key executives resign from Microsoft New Windows file system enters testing Windows server update ready to ship Microsoft CRM update aims at firms big and small Microsoft taps Wal-Mart exec as new COO Courtroom showdown for Microsoft and Google Microsoft eyes services for business Microsoft settles with Google over executive hire
Oh, and other news....
More happiness from the Microsoft world:
"Windows Security Flaw Is 'Severe'
PCs Vulnerable to Spyware, Viruses
By Brian Krebs
Special to The Washington Post
Friday, December 30, 2005; Page D01
A previously unknown flaw in Microsoft Corp.'s Windows
operating system is leaving computer users vulnerable to
spyware, viruses and other programs that could overtake their
machines and has sent the company scrambling to come up with
a fix.
Microsoft said in a statement yesterday that it is investigating
the vulnerability and plans to issue a software patch to fix the
problem. The company could not say how soon that patch would
be available."
- Poor MS
- by tanis143 January 1, 2006 9:53 AM PST
- For years MS has been the king of the hill. Now they see the hill they have is slowly turning into a bump in the road. With more and more support for opensource software its becoming harder for them to claim they are the best simply because they have more market share. Linux is starting to become known to the masses. Gamers and programers are finding ways to make the latest games run under linux. Pretty soon MS will have to provide a better product because Linux will offer a package thats comparable with less bugs, cheaper price (free, cant beat that!) and better performance.
- Like this Reply to this comment
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(9 Comments)Right now I'm working on getting wine to work with the games I like, as soon as I do, bye bye Windows XP, hello Linux!