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Microsoft To Debut 'windows Vista'


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SEATTLE (Reuters) - Microsoft Corp. (Nasdaq:MSFT - news), the world's largest software maker, said on Friday it will call the next version of its operating system "Windows Vista" as it prepares to release a wave of new products after posting its slowest-ever year of growth.

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Windows Vista, formerly known by its code-name Longhorn, is scheduled to launch in the second half of 2006, five years after

Windows XP, the longest time lag between releases of its flagship operating system that runs on nine out of 10 personal computers worldwide.

 

Microsoft has promised numerous enhancements in Windows Vista, including better security, graphics and computing over the Web.

 

"It's in the consumer area that they have the best hope of rapid adoption," said Rob Helm, analyst at independent researcher Directions on Microsoft.

 

Brad Goldberg, general manager, Windows product development at Microsoft, said the new name was aimed at "communicating the idea of clarity."

 

More details on Vista will be released at a developer's conference in September, Goldberg said, and a beta, or test version, will be released by Aug. 3.

 

New products, including Windows Vista, the next version of Office, new database software and the

Xbox 360 video game console are expected to help Microsoft return to double-digit growth after the company said on Thursday that yearly revenue grew 8 percent to $39.79 billion, the slowest yearly growth since Microsoft went public in 1986.

 

Shares in the company fell 2.6 percent to $25.75 on Nasdaq on Friday after it said earnings for the current fiscal quarter would be just below Wall Street's expectations.

 

Analysts brushed off the slower revenue growth and first- quarter outlook, saying long-term contract renewals would help the company return to double-digit growth.

 

Unearned revenue, which reflects long-term contracts that have been signed but not recognized as income, were $350 million higher than Microsoft had projected at $9.17 billion, indicating strong business demand for future products.

 

"Office 12 seems to be driving unearned," said Sanford C. Bernstein & Co. analyst Charles Di Bona, referring to the next major release of Microsoft's family of business programs.

 

Microsoft's unearned revenue balance for the business division that included Office grew the fastest in the latest quarter, rising $542 million to $2.8 billion.

 

Di Bona said investors may have also been concerned over an increase in marketing spending in the latest quarter that cut into Microsoft's operating profit, but said the stock remained undervalued at current prices.

 

At current prices, Microsoft is valued at 16 times projected earnings, compared with the average 24 times earnings valuation seen for the broader software sector.

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Test Version of Windows Vista Released

 

By ELIZABETH M. GILLESPIE, Associated Press Writer Wed Jul 27, 3:27 PM ET

 

REDMOND, Wash. - Microsoft Corp. released the first major test version of the Windows Vista operating system on Wednesday, giving a limited number of programmers and technology professionals the opportunity to test drive the highly awaited — and much delayed — program.

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The "Beta 1" of Windows Vista, formerly code-named Longhorn, was being delivered to more than 10,000 developers and others who will test the software and provide feedback. It's the successor to

Windows XP, which launched in October 2001.

 

The beta version does not have all the features that will be in the final product scheduled to hit store shelves in late 2006. Rather, it focuses on fundamentals such as security and overall manageability.

 

It includes new user account protection so that users are given only the privileges required to do their work. This mirrors a similar security scheme used by Apple Computer Inc.'s Mac

OS X and the

Linux operating system.

 

The beta also includes data protection technology that is expected to reduce the risk that data can be viewed by unauthorized users — even if it's on a stolen or lost laptop. The technology relies on encryption keys stored in a specialized chip.

 

It also ships with Internet Explorer 7 — an update to Microsoft's ubiquitous Web browser that will include protection from malicious Web sites and viruses.

 

Vista also comes with an outgoing firewall, as well as incoming filtering. Windows XP and Service Pack 2, a major security upgrade released last summer, only have in incoming firewall.

 

Microsoft also said the test version includes numerous performance improvements, including faster startup and an improved "sleep" state that combines Windows XP's standby and hibernate modes.

 

Eventually, Vista's features will include better ways to visualize data, such as seeing through windows that are stacked atop each other, more natural file organization and faster searching. Microsoft said Beta 1 includes an early look at some of those new designs.

 

The next beta of Windows Vista is scheduled to be released later this year. Microsoft plans to make that version available to a much wider audience.

 

Wednesday's release actually arrived slightly earlier than originally expected. When the Vista name was announced last week, the company said the beta would ship by Aug. 3.

 

But the final version has repeatedly missed deadlines. The successor to Windows XP was originally scheduled to ship in 2004 — a target that also was pushed back to 2005 and, now, 2006.

 

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On the Net:

 

Microsoft: http://www.microsoft.com/windowsvista/default.mspx

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