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Microsoft beefs up security in bid to beat virus attacks

Posted on: Monday, 5 April 2004, 06:00 CDT

OMPUTER software giant Microsoft has been forced to make security the overriding priority for its $6.8bn (Pounds 3.74bn, E5.6bn) a year research and development programme as a direct result of the unrelenting onslaught of computer viruses designed to attack its Windows' operating system.

Microsoft chairman and founder Bill Gates said: "The security effort our biggest thing, the highest proportion of the $6.8bn [annual R&D budget]. It is an area we must solve. There are certain industry-wide issues - preventing internet flooding, getting rid of passwords, changing the mail protocols so that these systems verify each other."

The problems Gates was referring to relate to the blitz of so- called "super virus" attacks that have crippled millions of personal computers all over the world since they last year. They have even been cited as a contributory cause to the big power blackout in the US in 2003.

Gates has set the huge R&D team at Microsoft's campus in Redmond outside Seattle a two-year deadline to solve the security problems. During the summer Microsoft will introduce what it hopes will be a stopgap solution with an updated version of Windows XP.

"This summer is all about security," said Gates. "It's a breakthrough in that it turns the firewall on automatically, blocks certain types of internet downloads and files things. It is an XP update that has to do with security. It's not about new features, it's focused security."

The challenge facing Microsoft is that it has been forced into a position where it is constantly playing catch-up with virus writers. Last week, Gates e-mailed Microsoft customers worldwide with a progress report on why their computers are constantly crashing under an unremitting onslaught of virus attacks.

"Criminal hackers have become more sophisticated," he said, "creating and distributing digital epidemics like Slammer, Blaster, Sobig and Mydoom that spread almost instantaneously. Blaster hijacked individual computers, turning innocent users into unknowing and innocent worm [virus] propagators."

While Microsoft is becoming increasingly concerned about the irritation viruses are causing ordinary consumers, it is even more fearful of the potential harm that can be caused by viruses infecting corporate networks.

"At the corporate level, one of the biggest concerns is the home computers or remote laptops infected with a virus or worm that are connected to a corporate network," Gates's e-mail said. "We are working on technologies that will inspect these remote devices and block network access if they don't pass a health inspection."

In the meantime, many companies will be forced to consider backpedalling on the trend to encourage staff to use their home computers to reduce pressure on corporate office facilities. Gates also said that Microsoft is working on ways of providing automatic anti-virus updates instead of expecting customers continually to go to Microsoft's website to download quick-fix software "patches" every time a new virus appears.

As part of the drive to focus resources on fighting the virus threat, Microsoft last week settled a legal battle with arch-rival Sun Microsystems over patents and alleged unfair competition. In addition to paying Sun $2bn, the two computing giants signed an accord to make their products work better together in order to "benefit customers".

The deal was sealed between Microsoft chief executive Steve Ballmer and Sun Microsystems chief executive Scott McNealy when both men swapped sports shirts worn by the Detroit Red Wings ice hockey team, claiming a close friendship helped smooth negotiations.

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