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Thursday, October 30, 2008

Microsoft Hopes to Learn From Vista's Mistakes

LOS ANGELES -- Microsoft Corp. gave the first extensive public demonstration of the next release of its Windows operating system as it seeks to avoid some of the stumbles that occurred with the last version, Windows Vista.

At a technical conference here, the Redmond, Wash., company also provided programmers with a test version of the software, dubbed Windows 7. The move is an important step to drum up support among independent developers.

Microsoft said it would also further embrace a growing shift towards online software by making a future Web-based version of its Office suite of productivity applications available free. It is a move to counter efforts by Google Inc. and others to encroach on Microsoft's turf with free word processing, spreadsheet and other programs.

Microsoft's Windows Vista received a critical drubbing when it was released nearly two years ago. Vista was criticized for the sluggish performance of the software and initial incompatibilities with digital cameras and some other devices. Microsoft says the incompatibilities have largely been corrected with updates to Windows Vista.

At the same time, Windows Vista endured attacks from rival Apple Inc. in a long-running advertising campaign for Apple's Macintosh computers. Microsoft recently began an ad campaign for Windows, partly to correct the negative perception of the software.

Microsoft said Windows 7 will come with improvements including a feature called "libraries" that will give consumers a way to easily access music, videos, photos and other documents that are located on many different storage devices, whether other PCs are connected to a home network or removable drives.

Another feature called "homegroup" will make it easier for users with, say, a laptop to move their machine between office, home and other locations. The feature will automatically configure the laptop, for example, to work with a local printer so users don't have to manually adjust their printer settings.

Microsoft executives said they are designing Windows 7 to run more speedily than Vista. They're working closely with hardware makers to ensure the software has no trouble recognizing and working with devices like printers, cameras and other products. "That's critical for us," said Bill Veghte, senior vice president for Microsoft's Windows business.

Microsoft has said it expects to ship Windows 7 for consumers by January 2010.

Microsoft's move to make Web-versions of its Office suite, including Word, Excel and PowerPoint, for free online represents a gamble that it can expand its audience for the software without cannibalizing one of the company's biggest cash cows.

Microsoft Senior Vice President Chris Capossela said he doesn't believe people will choose to use the free online version of the software instead of buying the software and installing it on their PCs. That's in part because the online versions won't be as responsive for large, complex files -- for example, Word documents with lots of pages of text and photos.

Instead, Mr. Capossela says Microsoft sees the Office Web applications as an opportunity to make at least some revenue through advertising from consumers who wouldn't otherwise purchase the software.

Earlier this year, Microsoft made an online version of Office available, but it only allowed users to view Office files. The new version will also allow users to edit and compose files.