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James
News about XP:

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As Microsoft Corp. (MSFT) gets ready to launch its newest operating system, Windows XP, a battle is raging over how much leeway it will give computer makers to change the look of the main screen.

Now xSides, a tiny Seattle company, is entering the fray with technology that literally pushes Windows aside and could provide such Microsoft rivals as Internet and media titan AOL Time Warner Inc. (AOL) with valuable screen space completely free of the software giant's influence.

Microsoft has heretofore exercised strict control over the initial start-up screens of new computers, barring PC makers from removing icons for its programs.

For Windows XP, due out Oct. 25, the picture is muddier. Microsoft is encouraging PC makers to ship the product with no icons at all, saying it is a cleaner look.

Still facing pressure from the U.S. government's antitrust lawsuit, Microsoft recently appeared to back off somewhat from using Windows to promote its other software, saying it would let PC companies remove icons for its Internet Explorer Web browser.

But on Thursday the company disclosed that if PC makers do put icons on the screen, they must include ones for Microsoft's browser, MSN Internet service and digital media player.

NEW SPACE

Icons are a key way for Microsoft and rivals to reach consumers as the companies start rolling out a new generation of subscription services built around such products as instant messaging, music and photography.

These fingerprint-sized screen icons are a valuable channel for signing up customers, and with its lock on Windows, Microsoft has been the chief gatekeeper.

XSides Chief Executive Bob Steinberg, who as a lawyer successfully represented another company in a lawsuit against Microsoft in 1994, says his firm is set to change that.

While most PC software runs on top of Windows, xSides bypasses Windows to talk directly with the hardware, Steinberg said in a recent interview.

By intercepting the video signal, xSides is able to re-size Windows -- without Windows' knowledge -- so that it takes up less screen space, Steinberg said.

XSides could erase Windows entirely, but it doesn't go that far. It just creates a new strip under the "taskbar" or down the right side of the screen, where open programs are displayed.

XSides can then add things to the new, non-Windows space: advertisements, icons, or even full-blown applications like instant messaging and e-mail, Steinberg said.

"It enables us to put anything we want underneath the taskbar. Windows has no idea it is where it is now because we take over the cursor, the keyboard, the so-called mouse events, and that allows us to be outside of the control of Windows," Steinberg said.

Browsers and other Windows-based programs can be launched from within the xSides space, completely out of Windows' control, Steinberg said.

"XSides provides a thing now to sort of level the playing field," Steinberg said.

A Microsoft spokesman said he was aware of the company but was not familiar with its products and therefore could not immediately comment.

ATTENTION AOL, PC MAKERS

Analysts say xSides could be an attractive partner for AOL as it seeks to grab consumers' attention.

Such speculation was fueled in May when technology Web site BetaNews published an internal AOL memo that detailed ways to ensure its services win a place on new PCs with Windows XP.

No. 4 on the list read: "Replace the default desktop. Partner with an OEM to replace the default desktop environment and default Microsoft functionality with a custom solution (e.g., xSides)." OEM, or original equipment manufacturer, refers to computer makers.

XSides says it has several customers and backers, including communications chip company Broadcom Corp. (BRCM), but Steinberg would not say if he was working with or courting AOL.

Asked if AOL was working with xSides, AOL spokesman John Buckley said, "The linkage has been because of that memo. I do not know of any kind of an actual relationship with them."

But analysts said AOL was almost certain to have at least talked to xSides.

"I believe very strongly in the possibility of a strategic partnership or even a straight-out acquisition of xSides by AOL," said David Smith, an analyst with the Gartner Group.

"That would give them the ability to take over part of the screen where Microsoft has no control," Smith said.

XSides could also partner with PC makers that, in a time of falling prices and profit margins, could shelve their fear of irritating Microsoft and install xSides and rent out the extra space to Microsoft rivals.

"The PC manufacturers frankly are likely to be a little nervous about going this route. But all it will take is one and the others will realize here's how to maximize your margin opportunity," said Chris Le Tocq, an analyst with Guernsey Research.

Several other companies make software that modifies the look of Windows, letting users customize the screen with new icons and themes.

WindowsX by Stardock and Talisman by Lighttek Software are examples of these products. However, these programs run on top of Windows to create a new Windows "shell" whereas xSides doesn't interact with Windows at all.

Another potential area of competition is with so-called corporate portals, which are gaining popularity with companies that want employees to have the same program and information.

These corporate portals also change the look of the desktop to fit each company's needs, piecing together the most useful programs in a new interface.

Computing heavyweights such as International Business Machines Corp.(IBM), Oracle Corp.(ORCL) and Microsoft are pursuing corporate portal customers.

NO STRANGER TO FIGHTING MICROSOFT

Steinberg is no stranger to taking on the world's biggest software company.

As a lawyer, in 1994 he won a $120 million verdict against Microsoft for Stac Electronics, now Previo Inc. (PRVO), which charged the software giant infringed its technology. Microsoft ended up paying $40 million in cash and investing $40 million in Stac.

"There is a lot of voltage when you're fighting Microsoft. It was the most exciting period of my life," Steinberg said.

Apart from taking on Microsoft, xSides and its 80 employees have their work cut out for them.
Mr Chunder
I find myself removing all the OEM and default MS installed "extras" and installing what I want to use.

I think everybody should do this. MS and the PCMakers and people like xsides can argue all they like.

Still, fair play to xSides for arguing with Microsoft, especially since they seem to find it entertaining.
akashik
Quote:
Originally posted by Mr Chunder
I find myself removing all the OEM and default MS installed "extras" and installing what I want to use.


Same. Whenever I reformat or get a new PC I usually put aside a good hour or three to go through it from top to bottom slashing and burning as I go.. amazing how much disk space you can free up once all the flotsam is gone..

Greg Moore
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