Full Court Press: Microsoft

Bill Gates, Microsoft's chairman and chief software architect, took the stand for the first time in the four-year-old antitrust case and acknowledged under oath that Microsoft has developed a modular version of Windows XP called Windows XP Embedded, which allows users to add or remove Internet Explorer, Windows Media Player and other Internet middleware.

Gates maintained throughout his testimony that there is no way to isolate the Internet components from Windows without crippling the operating system, but when asked if Windows XP Embedded could be installed on PCs, he responded, "You could configure it for that."

That testimony appeared to contradict Gates' written testimony that a stripped-down version of Windows is technically impossible because of the interdependencies between the OS and Internet middleware.

Gates also admitted he objected to a stripped-down version of Windows because it would allow competitors and partners to create customized versions of Windows, which he said would cause massive fragmentation and confusion in the distribution channel and consumer base.

Gates said there is an effort under way at Microsoft to identify and expose "certain" software interfaces between the OS and Internet middleware components as part of his tentative consent decree with the U.S. Department of Justice.

The nine state attorneys general who oppose the company's settlement agreement with the Justice Department said Microsoft should be forced to produce a modular version of Windows that gives users free choice over Internet add-ins.

While some channel players say OS fragmentation like that seen in the Unix market is a possible downside, others say that claim is exaggerated.

"I don't believe Microsoft would have such an impossible task in building different products for different markets," said Augusto Fazioli, president of IrisCube, a solution provider in Milan, Italy. "Many companies in other industries do it."

One pro-Linux solution provider said he favored the states' involvement. "Getting the government involved in this case is going to speed up the inevitable, which is the gradual erosion of Microsoft's lock on the desktop," said Jeff Gallimore, principal at Excella Consulting, McLean, Va. "You're already starting to see major corporations implement pilots of low-cost Linux desktops and having success."

At least one Microsoft solution provider said some of Gates' predictions of eroding industry standards and the PC ecosystem over time could ring true. "His testimony has been soaked with real-world examples that show he understands the ramifications of how the states [want to affect his business," said E. Andre Carter, CEO of Irimi, a mobile and wireless consultancy in Washington, who also works for pro-Microsoft lobbying group Americans for Technology Leadership. "The storm comes after the first drop [of rain."