News regarding the release of Microsoft Vista
and Office 2007

You need to remember that Microsoft has a spin machine that rivals no other. MS also has supposed "independent" sites and people publishing studies and reports that are pro Microsoft. Once you examine the statistics and statements, you find that the statistics are made up and the statements are often outright lies. It is hard to determine if a report is actually the real deal or spin anymore. Honesty and fairness are not at the top of the list in goals on these. These sites also churn out a fair amount of "FUD", Fear, Uncertainty and Doubt. MS has a vested interest in making the newest release of whatever make them money. They do this by creating buzz and making you want to have the next version so bad that you'll do anything to get it. This means that they try to drown out the cries of the whistle blowers any way they can, any time they can and with any disinformation they can. They fear objective reporting. They need you to believe.

So far, Vista has been delayed for a couple of years due to security flaws. At one point, about 60% of the core code was rewritten and the senior management fired or reassigned. Every time Vista is released for testing, security flaws are found that send it right back into development. Microsoft is now under such pressure to release Vista by the new January 30, 2007 deadline that (supposedly) it will be released whether it is secure or not. Service pack three (SP3) for XP is delayed because of the fear that people will just stick with XP with its lower hardware requirements and greater security than Vista. Microsoft is afraid that the new operating system will be another Windows ME. The goals of the reorginization in the first quarter of 2006 have been abandoned. With almost a year gone by from the second eWeek article reprinted here, the statements made are laughable.

Below are a few articles reprinted for clarification and to backup what is being said elsewhere on this site.

From eWeek.Com March 23, 2006

Ripples from the latest management shake-up at Microsoft are being felt throughout the all-important STU (Security Technology Unit).

Mike Nash, the corporate VP who guided Microsoft through some of its biggest security crises and led an aggressive effort to reshape the company's embarrassing image, is leaving his STU office and handing the keys to Windows Server veteran Ben Fathi.

Nash's exit ends a topsy-turvy tenure that coincided with the Blaster, Slammer and Sasser network worm attacks; the release of the security-centric Windows XP SP 2 (Service Pack 2) operating system makeover; the repairing of Microsoft's relationship with hackers; and the latest Vista delay that is partly due to lingering security testing concerns.

The 43-year-old Nash, who joined Microsoft in 1991 and was the first product manager on the original Windows NT marketing team, is leaving for a preplanned sabbatical and will be reassigned to a new post, according to a staff memo distributed on March 23.

When Nash assumed the role as security head honcho, Microsoft was the laughing stock of hacking community. The company bluntly refused to acknowledge software flaw warnings and released patches on an ad-hoc schedule, infuriating IT managers who struggled with the testing and deployment of updates.

All that would change in 2003 after three separate Windows worm attacks—Slammer, Sobig and Blaster—crippled networks around the world, forcing Microsoft to do an overhaul of its security response process.

Nash, a hands-on executive who camped out in the MSRC (Microsoft Security Response Center) war room and barked instructions during worm outbreaks, also managed the mandatory implementation of the SDL (Security Development Lifecycle).

He was also in charge of the delivery of Windows XP SP2 to more than 260 million machines and the creation of a security response process that is the envy of all software vendors. (ED Note: This envy was short lived. Soon after, Microsoft went back to it's former way of dealing with security threats.)

Along the way, there were hiccups—and product shipment delays—that rested on Nash's shoulders. Zero-day flaw warnings and the constant release of fixes for critical vulnerabilities continue to haunt Windows users and, as Nash himself admitted in a Slashdot Q&A, the company was slow to react to the spyware epidemic.

From eWeek.Com March 23, 2006

(Updated: Just days after announcing a delay in when Windows Vista will ship, Microsoft significantly restructures its Platforms & Services Division.)

Just days after announcing a delay in when Windows Vista will ship, Microsoft has significantly restructured its Platforms & Services Division and appointed Steve Sinofsky, who has headed the Office team until now, to lead the Windows and Windows Live groups, giving him broad responsibility for planning future versions of Windows.

While the Redmond, Wash., company is saying the reorganization is designed to better align the existing Windows and MSN assets with Microsoft's overall Live strategy, some sources tell eWEEK that the delay in the release of Windows Vista was the catalyst for the move, more so than Microsoft's stated goal of "ensuring the company delivers a full range of software-based services to consumers and businesses around the world."

Sinofsky is credited with running a tight ship and sticking to internal and shipping deadlines, a characteristic Microsoft is no doubt hoping he will bring to the Windows development teams going forward.

Kevin Johnson, co-president of Microsoft's PSD along with Jim Allchin, intimated as much, saying in a statement that one of the goals driving the change was to "increase Microsoft's agility in delivering innovation to customers."

The restructured PSD organization will continue to be led by Allchin and Johnson until Allchin retires next year as planned, at which time Johnson will become sole president of the division.

"As we launch new Windows Live services and finalize Windows Vista, we're looking ahead to how we deliver the best possible experience for customers, now and into the future. Today we are enhancing the leadership team and structure across the division to ensure we have the right organization to support our technology vision," Johnson said in a statement on March 23.

The new PSD is made up of eight new and existing groups: the Windows and Windows Live Group, led by Steven Sinofsky, senior vice president; the Windows Live Platform Group, led by Blake Irving, corporate vice president; the Online Business Group, led by David Cole, senior vice president; the Market Expansion Group, led by Will Poole, senior vice president; the COSD (Core Operating System Division), led by Brian Valentine, senior vice president; the Windows Client Marketing Group, led by Mike Sievert, corporate vice president; the Developer and Platform Evangelism Group, led by Sanjay Parthasarathy, corporate vice president; and the Server and Tools Business Group, led by Bob Muglia, senior vice president.

Allchin will also work closely with Valentine to deliver Windows Vista, Microsoft said, adding that Valentine's mission remained focused on shipping Vista. Sinofsky will assume responsibility for the process and planning of future versions of Windows, the company said.

A Microsoft spokesperson declined to say who would replace Sinofsky and head the development of the Office suite of products. Sinofsky will "stay involved in transition mode through May. Jeff Raikes, the president of Microsoft's business division, will be working with Sinofsky and his team to develop the best leadership structure for the future of Office," she told eWEEK.

Sinofsky will work closely with chief technology officer Ray Ozzie and Blake Irving to support Microsoft's services strategy across the division and company.

In addition to these changes, Mike Nash will be moving from his job as lead for the Security Technology Unit to a new role that is not being announced at this time. Ben Fathi will succeed Nash in leading security efforts.

Yusuf Mehdi, senior vice president, is taking on a new role as chief advertising strategist, where he will have a key part in shaping Microsoft's strategy for targeting the growing online advertising market, and will report directly to Johnson.

Martin Taylor, appointed a corporate vice president, will transition from the Server and Tools business to lead Windows Live and MSN Marketing. Taylor will run product management and marketing for Windows Live services, MSN.com and the company's Live Platforms, focusing on developing the brand and bringing new service innovations to customers, Microsoft said. Taylor was responsible for leading Microsoft's controversial "Get the Facts" anti-Linux research campaign.

Will Poole, who previously ran the Windows Client business, will be moving to lead the newly created Market Expansion Group within the Platforms and Services Division, focused on emerging markets and new form factors.

"Establishing an organization with product marketing and research and development responsibilities will bring focus to this key growth area for Microsoft and its potential customers around the world through products such as Windows XP Starter Edition and the recently launched Ultra-Mobile PC devices," the company said.

From CNN.COM Thursday, June 29, 2006

SEATTLE, Washington (AP) — Microsoft Corp. said Thursday it would delay the release of its Office business software suite, citing “product performance” issues.

In a statement released by the company’s Waggener Edstrom public relations firm, Microsoft said it would now release the product to big business customers by the end of the year, instead of in October as planned…

Microsoft has made early versions, or betas, of Office 2007 available for technical experts to download and test. In the statement, Redmond-based Microsoft said the delay was due to “internal testing and the beta 2 feedback around product performance.” The company declined to comment further.

The release of the next version of Office, which includes popular programs like Outlook, Excel and Word, is important for Microsoft because, despite its expansion into myriad other fields, the company still depends on Office and Windows for the bulk of its profits.

But Microsoft faces a tough challenge in convincing users to upgrade from previous versions of Office, which may seem just fine to many users. The company also is hoping to sell users on a slew of other related products for things like note-taking and advanced communications, as a way to grow revenue amid a more saturated market for the traditional Office software.

The new version of Windows, called Vista, also has faced a number of delays. It is currently scheduled to be released in January, missing the all-important holiday season.

From Forbes.Com November 30, 2006

Windows Vista is big for Microsoft's bottom line. It's also really big.

On Thursday, the software giant will launch the long-awaited, newest version of its operating system, Vista, for business customers. (ED Note: It was delayed until at least 1Q 2007) They'll also release new corporate versions of their Office products, like Word and Excel, and their Exchange e-mail server software. Chief Executive Steve Ballmer will speak at a launch event Thursday morning in New York, and some of Microsoft's (nasdaq: MSFT) largest customers will be listening.

But how soon will they upgrade?

Vista's magnitude is one reason for skepticism. It's Microsoft's largest, most complex operating system ever, and upgrading from the current version, Windows XP, is a big step. Corporate information technology departments have to figure out whether it's worth the return on investment to test, purchase, install and support the new version. And many will have to update their computer hardware just to meet Vista's recommended setup.

Microsoft has traveled far beyond its original iteration, released 21 years ago. The company made Windows to add a graphical interface to PCs, so computer users could point and click--like Apple Computer's (nasdaq: AAPL) Macintosh, released in 1984, instead of typing everything into a text-based system. Windows 1.0, released in 1985, came on two floppy disks and needed just 256 kilobytes of memory to run. It cost $100 at the time; adjusted for inflation, that's nearly $180 today.

Vista, which will go on sale to consumers on Jan. 30, 2007, needs 1 gigabyte of memory to tile through its three-dimensional effects--4000 times the memory required for Windows 1.0. Vista also requires 15 gigabytes of free hard drive space. Retail costs for upgrade versions will run between $100 and $259, while full versions will cost between $199 and $399, depending on feature sets. (Ed Note: An estimated 71% of computers in use today do not meet the minimum requirements to run Vista. Therefore, the cost to upgrade needs to include the cost of a new computer as well. The cost for this hardware will be about $1200-$1500.00 in todays dollars.)

The new operating system goes deeper into the computer than older versions of Windows and covers more ground. The fledgling Windows 1.0 ran on top of the text-based DOS, or disk operating system. It came with tools like a calculator, notebook, clock and calendar and wasn't yet sophisticated enough that you could tile one window on top of another. Vista runs as the computer's core operating system and packs bells and whistles for both IT managers and college students, with souped up security and data backup and the ability to record live TV or edit movies.

Consumers' collective cost to upgrade their computers' memory to support Vista will likely reach $17.5 billion, estimates Tom Trill, marketing director for Samsung Semiconductor, the world's largest memory chipmaker. Computers sold this year have an average of 854 megabytes of memory, up from 630 megabytes last year, he said. To get their old machines ready for Vista, the upgrade cost will run most people $50 to $100 per computer.

"You're talking about a lot of cost to be an early adopter," says Drew Farris, chief information officer for Iron Age Shoes, a footwear retailer. Farris estimates testing Vista itself could cost his company at least $500,000. "When I start looking at the desktop stuff, I need compatibility without risk. I'm not going to mess with what I know is a good thing until the large enterprises that have been planning the $10 million budget to test this and deploy it have done the leg work for me."

Advanced Micro Devices (nyse: AMD), a chipmaker with annual sales last year of $5.8 billion, expects to gradually shift its 5,200 desktop and laptop computers to Vista. "You won't see us wholesale replace our desktops, but we will see a fairly strong migration plan," says Margaret Lewis, director of AMD's corporate solutions.

Samsung's Trill said earlier this year that 250 million computers will be upgraded to Vista within two years, and in that span, another 400 million to 450 million new computers with Vista preloaded will be sold. (Ed Note: We now know that was wildly optimistic and was an off the cuff remark)

That's good news for Microsoft, which can afford to develop so-far unprofitable products like the Xbox videogame console and the Zune portable music player thanks to Windows' 70% operating margin. Windows accounts for 30% of Microsoft's sales and 60% of its operating income. Citigroup analyst Brent Thill estimates Windows to account for about $14.4 billion in sales in fiscal 2007. About 80% of the group's revenue comes from the sale of new computers already loaded with Windows, as opposed to retail upgrade kits.

From Internews December 26, 2006

Has Microsoft's new operating system, Vista hit an iceberg? Security experts believe a recent crop of vulnerabilities ends claims the successor to Windows is unsinkable.

After saying it would investigate proof-of-concept code released in Russia, Microsoft was hit by four more security vulnerabilities, including one involving Internet Explorer.

"Currently, we have not observed any public exploitation or attack activity regarding this issue," Michael Reavey, operations manager of the Microsoft Security Response Center, wrote in a blog entry regarding the Russian code.

Determina announced it has alerted Microsoft to four zero-day vulnerabilities it found in Vista.

In one instance, a malicious Web page or e-mail could result in hackers launching remote commands. Another flaw could elevate an attacker's privileges while two other unpatched problems target Vista's kernel causing a system to shut down.

Although Microsoft said it was investigating the security hole, the software giant's confidence in Vista remained unshaken. "I still have every confidence that Windows Vista is our most secure platform to date," Reavey wrote.

Hackers are lining up to deflate Microsoft's claim that Vista is the most secure operating system Redmond has produced. And some experts say that in terms of security, Vista and its predecessor XP are almost mirror images.

"There is little difference in effective security between XP and Vista," Ross Brown, CEO of Eeye Digital Security, told internetnews.com. The charge comes amid a raft of alerts from security vendors that have found vulnerabilities in Vista.

To meet its high sales expectations, Brown said Microsoft needs to find a new reason for consumers to switch to Vista now that its security has been deflated. "Vista is missing a compelling reason [to buy or upgrade to it]."

In November, Microsoft announced the shipment of Vista for volume licensees to corporate customers and other large organizations, and set Jan. 30, 2007, as the date the new OS will be available to consumers in a packaged retail version.