Beyond Binary

The Russian government is exploring whether Microsoft deserves closer scrutiny under its antitrust laws, specifically whether the software maker should be added to a government-maintained list of companies with high market share.

A copy of the Russian edition of Windows XP Starter Edition. Russia was among the places where Microsoft tested the low-cost version of Windows aimed at first-time PC buyers.

(Credit: Microsoft)

Being added to the list itself doesn't mean the company is under investigation, but rather that it must comply with laws governing firms that have a significant market share. Unlike in some regions, Russia starts keeping an eye on companies with even a relatively low share. Anything upwards of about 35 percent share could land a company on the list.

"Russian authorities have opened an inquiry into the PC operating system sector," Microsoft told CNET News in a statement. "We are cooperating fully with their review."

Why the company is just now being considered for the list is unclear.

Russia hasn't been a major regulator of Microsoft in the past. The company has faced scrutiny and oversight in the past in Japan and Korea, in addition to its well-documented battles with regulators in the U.S. and Europe.

Most recently, the E.U. has issued a preliminary finding that Microsoft's inclusion of a browser within Windows violates its antitrust laws. Microsoft has said that the E.U. might force the software maker to distribute other browsers and even disable some Internet Explorer code if a user opts for one of those rivals.

Russia has passed China to become the largest generator of spyware and other malicious code, according to a report set to be released on Friday.

(Credit: PC Tools)

Security software maker PC Tools says that Russia now accounts for 27.9 percent of such software, compared with China's 26.5 percent. The U.S., which had been the second largest producer in prior surveys, is now in third place, accounting for a hair less than 10 percent of malware.

Russia is also known as a hotbed for junk e-mail, known as spam.

PC Tools said that the death of Russian Business Network, a well-known malicious software distributor, has not slowed that country's production of malicious code.

"The vacuum left by the RBN has been filled by other malware distributors," PC Tools malware analyst Sergei Shevchenko said in a statement. "The bottom line is that there are more viruses and spyware coming out of Russia now than ever before and the complexity of this malware is also increasing."

In fact, he said, the now-defunct organization was easier to track than the smaller outfits that are filling its shoes. "Now we are seeing Russian malware hosting services being advertised for servers in Malaysia, China, Panama, Singapore, Thailand, Turkey and India."

For-profit attacks have been on the rise, particularly those targeted at small groups or individuals.

Below is a list of the top 10 malware-producing countries, while PC Tools has an interactive world map on its site.

1. Russia - 27.89 percent

2. China - 26.52 percent

3. United States - 9.98 percent

4. Brazil - 6.77 percent

5. Ukraine - 5.45 percent

6. United Kingdom - 5.34 percent

7. France - 3.81 percent

8. Germany - 2.14 percent

9. Sweden - 1.6 percent

10. Spain - 1.37 percent

As if the Microsoft vs. Google battle didn't already resemble a game of Risk, the software giant announced plans to move into Irkutsk.

The software maker confirmed Monday that it has signed a memorandum of understanding with the regional Siberian government, but said that it is too soon to say whether Irkutsk will be the site of a planned data center in Russia.

"Though Microsoft Russia is working on potential data center construction in Russia, we are still far from final site selection," the software maker said in a statement.

Microsoft has been on a building spree of late, recently announcing plans to move into Chicago, to go along with existing efforts in Quincy, Wash., San Antonio, Texas, and Dublin, Ireland.

Building all of these massive server farms is necessary, not only for the Windows Live effort, but also as Microsoft adds services components to other products, such as Office, SharePoint, and Exchange.

"All of the Microsoft product groups are going to have to have some online component to them," said Mike Manos, Microsoft's senior director of data center services. "One of the outgrowths of that has been the data center program." His role, he said, is making sure that the company's server capacity is not the "binding gate" to the company's expansion.

"You never want to have infrastructure be the reason you can't grow your business," he said in a recent interview.

Manos said that Microsoft has 35 different criteria when choosing a site, things like access to water and power, electricity prices and data fiber capacity. The company has created a heat map of the world, down to the local level.

"It literally colors the world from red to green," Manos said.

Each of the sites Microsoft has chosen so far has unique attributes, he said. In San Antonio, for example, the company makes use of recycled water. That's better for the environment he said, but is also green in another sense.

"Data centers consume a lot of water," Manos said. "Using gray or recycled water is not as expensive as using water out of the municipal system."

In Chicago, Microsoft's data center is being built at the site of a dilapidated warehouse. It's also being built by an outside company, Ascent, which had picked out the site and approached Microsoft about being one of several tenants. In the end, Microsoft negotiated to be the site's only tenant and to have control over how the facility is built.

"By and large, the movement forward is for us to build and operate our own (data centers)," Manos said. "Where it makes sense to lease we take a look at it. At the size and scale we are at, co-location doesn't make sense."

Another plus of Chicago, Manos said, is the ability to use the Windy City's frigid winter weather to provide natural cooling--a benefit that Siberia could certainly offer as well. As for the potential Irkutsk location, it has the added benefit of giving a new threat to Microsoft managers. Mess up, and you really might be sent to Siberia.