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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Gerald Walls who wrote (23990)	6/10/1999 8:29:00 PM
From: t2	Read Replies (3) \| Respond to of 74651

Government witness Felton could not remove IE in court experiment today. Why did the government object to the demonstation? Judge calls demonstation "inconclusive" but also stated that the MSFT lawyer made his point. I don't understand why he labeled it inconclusive when it did not work. A key was that the security issue with respect to the browser is simple--don't hook up to the net. That is what the MSFT lawyer got Felton to admit. Problem solved!! quote.bloomberg.com This the updated version of the story with afternoon testimony. Microsoft Judge Asks Whether Browsers Hurt Security (Update2) Microsoft Judge Asks Whether Browsers Hurt Security (Update2) (Adds details of Microsoft computer demonstration in third section and fourth sections, closes shares.) Washington, June 10 (Bloomberg) -- The judge in Microsoft Corp.'s antitrust trial introduced a new challenge to the company's defense, questioning whether bundling browser software with the Windows operating system might increase the risk of crippling computer viruses. Are there ''any security issues involved in the choice of a browser or whether to get a browser at all,'' U.S. District Judge Thomas Penfield Jackson asked a government expert witness. ''It seems self-evident to me that the presence of a browser in the operating system increases the chances of penetration by a virus,'' the judge said. ''If you are a corporate system administrator concerned'' that novice users might accidentally introduce a virus into a computer network, ''you might well choose not to have a browser in order to prevent that means of spreading a virus,'' replied Edward Felten, a Princeton University computer scientist. ''There is no foolproof security technology'' to prevent unauthorized computer intrusions, said Felten, an expert on Internet security. The exchange suggested Jackson is focusing on an important element of the case against Microsoft by the U.S. Justice Department and 19 states: That Microsoft denies choice to consumers, in this instance large companies, by forcing them to take an Internet browser along with Windows 98. The task for Jackson is to decide whether Microsoft is a monopolist that is abusing its dominance in the operating system market. The Windows systems run about 90 percent of the world's personal computers. Repelling Netscape The government contends that Microsoft illegally defended its Windows product's preeminence, repelling a challenge from Netscape Communication Corp.'s rival Navigator browser by integrating its Internet Explorer browser into Windows. A computer industry consultant testified earlier in the trial that large companies would prefer an operating system with Navigator or no browser for a variety of reasons. The browser made by Netscape, now part of America Online Inc., was seen by Microsoft as a threat to Windows, according to company and government witnesses. Microsoft witnesses, including Vice President James Allchin, have testified that integrating Web browsing into the personal computer operating system helped create a new, better product. Felten, the last of three government witnesses to testify in the trial's rebuttal phase, reiterated assertions that there was no technical justification for including Web browsing functions in the operating system. ''Microsoft can deliver a version of Windows 98 from which the Internet Explorer browser has been removed and deliver it in such a way that does not affect the non-Web browsing functions of Windows 98,'' he said. Live Demonstration Over government objections, Microsoft performed a live computer demonstration in the courtroom to rebut Felten's claim that a program he devised removed Internet Explorer from Windows 98 without disabling the operating system. Felten testified that Windows 98 ran slightly faster without Internet Explorer and used 20 percent less memory. Government attorney Steve Holtzman argued the experiment was invalid because the Toshiba Corp. laptop computer used in the demonstration was loaded with a second Web browser, an Internet Explorer-based application called Encompass. ''As much as I respect your technical knowledge, you can't prove the authenticity of this,'' Jackson told Microsoft lawyer Steven Holley. The judge relented, though, and allowed the demonstration, saying, ''Mr. Holley really wants to run this program.'' Placing the laptop computer on the witness stand, Holley asked Felten to remove Internet Explorer from Windows 98. Once that was accomplished, Holley had Felten invoke a command -- and Internet Explorer reappeared on the computer screen. 'Let's browse' ''Let's browse around a little to see if you are not using Internet Explorer,'' Holley said. A program bug could explain why Internet Explorer was revived, Felten said. ''That's a pretty big bug,'' Holley said. ''Bugs come in all sizes and shapes,'' Felten replied. The judge halted the argument, suggesting he regarded the demonstration inconclusive. ''You've made your points. Any further experimentation is not going to change the minds of either one of you,'' Jackson said. Internal Debate? The government introduced a 1997 e-mail by Allchin that suggested there was debate within Microsoft about the wisdom of including Internet Explorer in Windows 98. Allchin wrote that Microsoft Senior Vice President Joachim Kempin opposed including Internet Explorer 4.0 in Windows 98, then code-named ''Memphis.'' ''I think he wants a 'Memphis-like' product (with all the new hardware support) minus IE 4.0 in June. He said IE 4.0 can be added next year,'' Allchin wrote. Kempin's views were significant because he was in charge of dealing with computer makers, Felten said. ''Mr. Kempin appears to think there would be a demand for such a product'' that didn't include Internet Explorer, the computer scientist said. Shares of Microsoft fell 2 7/16 to 79 7/8. NYSE