To: Judi Simpson who wrote (27967 ) 7/3/2002 9:12:29 AM From: SIer formerly known as Joe B. Respond to of 110603 Microsoft Unwraps New Initiative, Code Names Tue Jul 2, 9:00 PM ET By Reed Stevenson story.news.yahoo.com SEATTLE (Reuters) - Microsoft Corp. over the past week has quietly unveiled details about a key new security initiative code-named Palladium, giving the first glimpse into its plan to deliver on its promise of "Trustworthy Computing." Named after a protective statue of the Greek goddess of wisdom, "Palladium" is being used to describe a broad-based security system for the Windows operating system that will involve both hardware and software. As Microsoft wraps up its antitrust case and settles into marketing its newest Windows operating system and seven-month-old Xbox ( news - web sites) video game console, the cash-rich software giant is directing attention toward its next generation of products, including Palladium and others carrying code-names such as "Longhorn" and, reportedly, "Freon." John Manferdelli, product manager for the Palladium business unit, said in an interview published on Microsoft's Web site that the new initiative "will give individuals and groups of users greater data security, personal privacy and system integrity." Microsoft co-founder Bill Gates ( news - web sites) had outlined a promise of "Trustworthy Computing" in a widely publicized, companywide memo in January. The palladium was famed in ancient Greece for safeguarding Troy. Legend had it that as long as the statue was kept safe, the city could not be captured. Instead of storing sensitive information such as passwords on software, Palladium will also aim to protect information at the hardware level -- for example, encrypting keystroke or video display signals carried over wires. To achieve this, Manferdelli said that Microsoft is calling for industrywide collaboration with hardware makers and is already working closely with chip giants Intel Corp. and Advanced Micro Devices Inc. on the new security architecture. With a cash war chest of more than $30 billion, the Redmond, Washington-based company is trying to move beyond software and into a new realm of services and hardware that will keep it growing. NEXT WINDOWS, XBOX IN THE WORKS Palladium will most likely be an integral part of the next version of Windows, which is code-named "Longhorn." In a detailed interview with Fortune Magazine this week, Gates provides a broad view of what Longhorn will hope to accomplish once it succeeds the current Windows XP ( news - web sites) (once code-named Whistler) operating system sometime after 2005. Gates explains that Longhorn will be much more intelligent in that it will recognize users and tasks seamlessly, and tailor itself to specific situations and needs. "Why can't I tap into all my stuff at home or at work from any device that's mine, and have it just be available because it knows I'm me?" Gates asked in the Fortune article. Another pet project mentioned in the article is "Broadbench" a huge video screen that is supposed to be as big as -- and eventually evolve into -- a desk. Beyond software and office hardware however, Microsoft has already laid bare its ambition to penetrate the entertainment hub of the home, the living room, with its Ultimate TV digital television recording system and Xbox video game console. "Freon" is the code name for a future version of Xbox that will combine the Xbox machine's gaming abilities with the ability to record and play back programs on a hard drive, according a report in the Wall Street Journal on Monday. A Microsoft spokeswoman did not confirm the new Xbox code name or the project, which reportedly takes aim at Sony Corp ( news - web sites).'s lead in digital TV recording with the TiVo ( news - web sites) system and its unmatched success with the PlayStation series of video game machines. Xbox had the code name "Midway," after the World War II naval battle in which the United States effectively ended the threat of a further Japanese invasion in the Pacific. While Freon appears to be far off, another code name that is close to becoming a product is "Mira" the so-called "smart display" that allows users to detach flat screen monitors from their personal computers but still access their PC and the Internet from another room using a pen and wireless connection. Mira-based products will debut this fall, alongside the portable Tablet PC, Microsoft has said.