Neowin.net

While Microsoft is focusing much of its energy these days on developing Web services and on tightening the security of its software, it hasn't stopped exploring new markets.

The Redmond, Wash.-based company plans to make deeper forays into the areas of security software and storage through two upstart divisions, according to Group Vice President Jim Allchin.

A new storage business unit, run by Bob Muglia, is "looking at products that corporate customers might use," Allchin said in an interview with CNET News.com. "They pay a lot (for storage) and are concerned with storage...That whole world is super-confusing, and there are some things we can do that customers would love."

Allchin didn't provide details about what types of storage products Muglia's division is planning, saying only that the division is "at ground zero right now."

The unit is charged with developing "a cohesive product and business strategy for the evolution of Microsoft file systems, network attached storage (NAS), storage area network (SAN), backup, continuous availability, and storage resource management," according to Microsoft's Web site.

News source: News.com

In Tuesday's motion, the states also asked the judge to appoint a technical expert to help provide "impartial opinions on the complex, highly technical issues raised by the parties."

Microsoft has rejected both requests when approached directly by the states.

Microsoft spokesman Jim Desler said the company had proved during the trial that it is impossible to remove software features from Windows without damaging the operating system.

"They're trying to relitigate issues that they did not prevail upon in the court of appeals," Desler said. "And, in doing so, they're trying to complicate this case unnecessarily."

Desler said state attorneys general are working "hand-in-hand" with Microsoft competitors, who "will stop at nothing to get access to our intellectual property."

Microsoft reached a deal with Justice in November to settle the long-running case. Nine of the 18 states in the lawsuit agreed to sign on to the deal, but nine others are pressing ahead and asking the judge to impose stricter sanctions.

During the trial, the government accused Microsoft of using its Windows monopoly to snuff out competitors who make add-on "middleware" products, such as Netscape Communications Corp.'s Navigator browser.

In a landmark ruling on the case in June, a federal appeals court dismissed parts of the government's case, but upheld a lower court's conclusion that Microsoft had used illegal tactics to maintain the Windows monopoly.

Among the illegal tactics cited by the court was the "commingling" of Windows source code with add-on middleware.

The dissenting states -- including California, Massachusetts, and Connecticut -- say the availability of a stripped-down browser, without additional features, would help restore competition to the software business.

Later in the day, lawyers for the two sides said in a joint legal filing that they cannot agree on how much time each should have to bring witnesses before the judge.

The dissenting states want each side to be limited to 20 witnesses and no more than 85 hours of testimony. They said that would amount to about three weeks of courtroom time.

Microsoft proposed that each side be allowed up to 150 hours worth of testimony, nearly double the states' proposal.

The states have in the past accused Microsoft of using legal maneuvers to drag out the proceedings and delay the outcome of the case.

But Desler said Microsoft is not stalling.

"We'd like nothing better than a short process. However, given the breadth of the states proposals, and their potential harm on industry and consumers our recommendations on time and witnesses are entirely appropriate."