Bill Gates tried to take the con out of icon yesterday. The Microsoft boss tossed the government a bone by allowing computer manufacturers to jigger the icons that come with Windows.
Original Equipment Manufacturers (OEMs) such as Compaq, Dell and HP will be able to toss icons for products such as Internet Explorer and MSN Internet Service, under the terms of new licensing agreements.
In addition, Microsoft also said fiscal fourth-quarter sales exceeded analysts’ forecasts, boosting shares of the tech giant in after hours trading. Stocks are expected to rise today on the postive news.
Companies can add AOL or Real Networks’ icons, too, bringing to an end the standoff between Microsoft and AOL, which has a deal with Real to offer its media player instead of Microsoft’s.
Choosing his words carefully, Microsoft CEO Steve Ballmer made clear the concession was external to any settlement talks the company may have going on with the government.
“We recognize that some provisions in our existing Windows licenses have been ruled improper by the court, so we are providing computer manufacturers with greater flexibility, and we are doing this immediately so that computer manufacturers can take advantage of them in planning for the upcoming release of Windows XP,” said Ballmer.
He added that the announcement “does not take the place of settlement discussions with the government parties or any future steps in the legal process.”
“This is a political move, a token gesture,” said Al Gillen, analyst at IDC. “They’re not offering much. Netscape’s not going to suddenly spring back.” He added that OEMs would welcome the chance to put icons from program makers on the desktop. “They can make money there. That’s prime real estate.”
The license changes will also apply to new PCs with Windows 98, Windows Me and Windows 2000.
Microsoft has been carefully monitoring response to test versions of Windows XP, which is due to hit the streets on Oct. 25, over the last two months. Attorneys general for Connecticut and Iowa have already raised a fuss, saying Microsoft looks like it is continuing with its illegal monopolistic ways.