Mike

Microsoft on Monday plans to rebrand its flagship productivity suite as "Office System," in an attempt to reposition the software as a base on which businesses can custom-build products. As previously reported, concurrent with the rebranding, Microsoft officially launched Office 2003 Beta 2, which will be available to about a half million beta testers and businesses. Microsoft delivered the software late last week to the 12,000 people who tested Beta 1, which was released in October. Microsoft plans to ship Office System during the summer.

As part of the rebranding, Microsoft is adding Office to the name of the individual applications. For example, Word 2003 would now be called Office Word 2003, or Outlook 2003 would be Office Outlook 2003. Office System represents the brand covering the whole family of products, which includes Office 2003, Publisher and Visio, among other desktop software.

Mike

Intel is hoping to goose notebook sales through the channel next week when it launches its new Centrino mobile architecture, but solution providers say the technology's success will hinge on extended battery life, aggressive price points and a clear marketing message.

A variety of notebooks and tablet PCs based on Centrino,a combination of a mobile CPU called the Pentium-M, a chipset and 802.11b wireless components,are slated to be unveiled here at a launch event Wednesday amid a $300 million marketing campaign from Intel. The Centrino package is slated to include ultra-low-power 900MHz to low-power 1.6GHz CPUs.

Mike

The creation of a small- and midsize-business solutions and partner group to be headed by Microsoft's outgoing sales chief is viewed by partners as a big win,so long as his sales replacement is channel-friendly.

Microsoft Worldwide Vice President of Sales, Marketing and Services Orlando Ayala confirmed a CRN report last week that he will step aside from the No. 3 role to focus on the small- and midsize-business market and channel. Ayala's new position as group vice president of small and midmarket solutions and partners is effective July 1, although he has assumed many of those duties already.

Mike

Bungie reveals that the much anticipated sequel to Halo won't make it to stores this year. Bungie, the developer of Halo for Xbox, has updated its official site with news that Halo 2 will not be released in 2003.

"This game is a vast undertaking, considerably more complex than any of our previous efforts, and there is just no way to squeeze all of the necessary work into this calendar year. We know many of you were hoping to get your hands on Halo 2 during the holiday season, and we're sorry to disappoint you - but making this game as good as we possibly can is our paramount concern," said a Bungie representative. "Microsoft understands and supports our decision, and we hope you will too. Our ultimate goal is to make Halo 2 a great game; when the game comes out next year, we think you'll agree we made the right choice."

Mike

Microsoft has had some trouble holding on to its software lately, with versions of popular programs finding their way on to the Internet before their intended release. An early test version of the next major release of Windows leaked onto the Net, offering a glimpse of the company's plans for the new software. The leaked version of the upcoming desktop operating system, code-named Longhorn, hints of major changes under the Windows hood, including a new file system with enhanced storage capabilities. Known as Windows Future Storage, the new means for storing, accessing or indexing files will replace NTFS and FAT32, the predecessors used by Windows XP.

Microsoft did not identify the source of the leak, which is still circulating on the Web and on Internet relay chat, but say the leaked version of Longhorn is authentic.

Mike

Solution providers challenged a top Microsoft channel executive during a public appearance last week, seeking answers to why the developer provides pricing advantages to large computer makers but not to the systems builder channel. The exchange, during a keynote address by Margo Day, general manager of Microsoft's U.S. Partner Group, galvanized systems builders last week at the Intel Solutions Summit here.

In her presentation, Day spelled out some details of the upcoming Windows Server 2003 launch, noting that Microsoft plans to roll out several flavors, including a Data Center Edition, Enterprise Edition, Standard Edition, Web Edition and Small Business Edition, on April 24. Day also repeated the vendor's plans to release in the fall new versions of Office and Exchange that lend themselves to potentially lucrative server, desktop and network upgrades.

Mike

Unix developer The SCO Group has filed a lawsuit against IBM charging it with misappropriation of trade secrets, unfair competition and other illegal actions related to IBM's Linux business. The suit seeks at least $1 billion in damages. IBM obtained its Unix license in 1985 from AT&T, which developed the operating system, SCO said in a statement. In 1995 SCO purchased the rights and ownership of Unix and thus became the "successor in interest" to the Unix licenses doled out by AT&T to IBM, Hewlett-Packard and others, SCO said.

Mike

Applied Digital Solutions on Friday said it filed suit against IBM, alleging that Big Blue is trying to take control of the rights to a microchip that can be implanted under human skin. Applied Digital, which has borrowed $77 million from IBM, alleged the computing giant is using its position as its lender to take control of a subsidiary that holds the intellectual rights to the Verichip, which can be embedded under the human skin and read by a remote sensor. That unit is the collateral in the loan from IBM, on which Applied Digital just missed a $46 million payment.

Mike

Intel will offer a performance boost for workstations and servers next week, with a pair of new Xeon chips. The Santa Clara, Calif., chipmaker is expected to launch the new chips, running at clock speeds of 3GHz and 3.06GHz, on Monday. Though they've yet to be officially unveiled, the new Xeon chips first appeared in workstations in early February.

Dell Computer and Hewlett-Packard, for example, have been selling 3.06GHz Xeon workstations since about Feb. 3. But a number of brand-name computer manufacturers are expected to announce on Monday plans to offer the chips in their server lines.

Mike

Microsoft is on a quest to conquer the world of VM (virtual machines). With its acquisition of San Mateo, Calif.-based Connectix and its flagship virtual-machine software, Microsoft embarks on a strategy to fuel server consolidation and build momentum around its forthcoming Windows Server 2003. The Redmond, Wash.-based software giant's acquisition immediately gives it Connectix Virtual PC for the desktop that allows users to run multiple versions of Windows, Macintosh, and Linux operating systems on the same box.