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********************
 
October 3, 2001--In this issue:

1. NEWS AND VIEWS
     - Microsoft Responds to Novell Concerns
     - Supreme Court to Review Microsoft Appeal Friday
     - Microsoft Retires Windows NT 4.0, More to Come
     - Correction

2. ANNOUNCEMENTS
     - Windows 2000 Magazine Announces Spring 2002 Conference Schedule
     - What Does the Home of the Not-Too-Distant Future Look Like?

3. CONTACT US
   See this section for a list of ways to contact us.

********************

1.

NEWS AND VIEWS


   (contributed by Paul Thurrott, News Editor, thurrott@win2000mag.com)

* MICROSOFT RESPONDS TO NOVELL CONCERNS
   Responding to Novell's allegations that Microsoft tried to disparage
the company, Microsoft yesterday said that it had already tried to
address Novell's concerns by halting shipments of the offending
promotional materials and issuing new clarifying statements. Microsoft
says that it hopes Novell will take these efforts in good faith,
although, of course, Novell is now suing Microsoft for making false and
misleading statements about Novell and its products. Novell is seeking
unspecified monetary damages and a corrective advertising campaign from
Microsoft.

The problems started when Microsoft sent Novell customers a mock cereal
box called "Microsoft Server Crunch" that incorrectly stated that
Novell was exiting the software business and that its software was
expiring. "The box made some representations that Novell took issue
with," a Microsoft spokesperson said, noting that Microsoft halted the
cereal-box shipments and sent out notes clarifying and correcting the
statements after Novell complained. "Apparently these actions have not
satisfied Novell. We will review the lawsuit when we receive it and
respond accordingly."

The Microsoft spokesperson added, "We regret any inconvenience to these
customers and hope that Novell views our efforts to address their
concerns in good faith." Novell obviously wasn't impressed with
Microsoft's responses. "Microsoft hasn't acknowledged that the
statements were false, and they haven't said they would not use them
any more," a Novell spokesperson said. "That's where the problem lies."

Microsoft has historically competed aggressively, and its competitors
and critics maintain that the company has often crossed the line. As a
result, Microsoft has been under almost constant legal scrutiny for the
past 10 years, resulting in one of the country's most infamous
antitrust cases, which is still making its way through the courts.

* SUPREME COURT TO REVIEW MICROSOFT APPEAL FRIDAY
   The US Supreme Court will meet Friday to discuss the Microsoft
antitrust case for the first time. Two months ago, Microsoft petitioned
the high court to hear its appeal, an action that--if accepted--will
see its legal battle move out of the US District Court of the District
of Columbia. Nine of the Supreme Court justices will review several
cases Friday, including Microsoft's, and both sides expect a quick
decision. If the justices vote on Microsoft's fate Friday, the earliest
possible notification of their decision would occur Monday.

Most legal analysts say that they expect the Supreme Court to reject
the appeal, which would keep the current remedy phase moving forward in
the lower court. It's unusual for the Supreme Court to hear a case
that's still in progress. Microsoft issued the appeal because it
believes that Judge Thomas Penfield Jackson, who oversaw the original
antitrust case, exhibited bias against the company and that the court
should therefore throw out his entire decision against Microsoft.
Instead, the US Court of Appeals ruled that Jackson's decision was
correct, but that the court should review his remedy--to break up
Microsoft into two companies--because the judge didn't provide
Microsoft with hearings before issuing his remedy.

Further complicating the appeal is the fact that the Appellate Court's
decision was unanimous: All the justices believed that Microsoft is an
illegal monopoly that abused its power, and it's unlikely that the
Supreme Court will step in, because there was no dissenting opinion.
And Judge Colleen Kollar-Kotelly, who is hearing the case's remedy
phase, has issued stern warnings about ending the case quickly, a
proactive move that will likely sit well with the high court.

* MICROSOFT RETIRES WINDOWS NT 4.0, MORE TO COME
   More than 5 years after its initial release, Windows NT 4.0 edged
into retirement on October 1, when Microsoft discontinued the sale of
the product through its volume licensing programs, although support for
the product is still available. The announcement came almost
simultaneously with news that shipments of Windows 2000 Server are far
outpacing demand for Windows NT Server 4.0, according to Microsoft.

"Customers are moving to Windows 2000 in record numbers, and anyone
\[who's\] made the move to Windows 2000 has no interest in going back to
\[NT 4.0\] for any reason," Peter Conway, senior director of the Windows
.NET Server Solutions Group told me yesterday. "The shift to Windows
2000 has happened more quickly than we expected. Customers are making
the migration very quickly, and they want Windows 2000, not \[NT 4.0\].
We're very excited about the foundation in the base 2000 platform."

As part of its plan to retire NT 4.0, Microsoft also removed all
upgrade versions of NT 4.0 from retail locations; full versions will
still be available for the foreseeable future. And NT 4.0 isn't the
only Microsoft product that's getting a pink slip: As of December 31,
Microsoft will retire Windows 95, Windows NT 3.5, and all versions of
MS-DOS and Windows 3.x, and the company won't offer support for these
products after that date. For more information about Microsoft product
lifecycles, visit the Microsoft Web site.
   http://www.microsoft.com/windows/lifecycleconsumer.asp

* CORRECTION
   Yesterday's article titled "Netcraft: IIS Dominates the Web," should
have been titled, "Netcraft: Windows Servers Dominate the Web." We
apologize for any confusion the error might have caused.

2.

ANNOUNCEMENTS

* WINDOWS 2000 MAGAZINE ANNOUNCES SPRING 2002 CONFERENCE SCHEDULE
   Be sure to put these dates on your calendar. SQL Server Magazine
LIVE! and Windows & .NET Server Connections run from May 5 through 8,
2002, in Palm Springs. Microsoft ASP.NET Connections and Visual Studio
Connections run from April 30 through May 3, 2002, in New Orleans.
You'll get two conferences for the price of one! For more information
about these conferences, visit our Web site.
   http://www.win2000mag.net/events/pentontech

* WHAT DOES THE HOME OF THE NOT-TOO-DISTANT FUTURE LOOK LIKE?
   You've never seen anything like the Connected Home Magazine Virtual
Tour. Experience (room by room) the latest home entertainment, home
networking, and home automation options that will change the way you
work and play. While you're there, enter to win a free copy of Windows
XP!
   http://www.connectedhomemag.com/virtualtour

3.

CONTACT US


   Here's how to reach us with your comments and questions:

* ABOUT NEWS AND VIEWS -- thurrott@win2000mag.com

* ABOUT THE NEWSLETTER IN GENERAL -- jfeuerbacher@win2000mag.com;
please mention the newsletter name in the subject line.

* TECHNICAL QUESTIONS -- http://www.win2000mag.net/forums

* PRODUCT NEWS -- products@win2000mag.com

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