Microsoft to Revamp Entire Product Line with Palladium

Palladium is far-reaching and not simply another Windows upgrade. Longhorn, once thought to be a point-release update to Windows XP, has taken on new importance, and Microsoft will delay its release until 2004 or 2005. "This [technology] isn't just about solving problems, but expanding new realms of possibilities in the way people live and work with computers," says Palladium Product Manager Mario Juarez. Also, Microsoft will need to extensively upgrade key applications such as Office to make them compatible with Palladium. Office 11, due next year, won't meet Palladium's requirements.

Palladium's hardware components require a new class of microprocessors and supporting chips that, for the first time in the PC space, will differ by security, not by speed. Major PC companies such as Dell, Hewlett-Packard (HP), and IBM will need to sign on for Palladium to be successful. Eventually, Microsoft will port the technology to other platforms, including smart cell phones, palm-sized devices and, presumably, Linux- and Mac-based PCs.

Palladium is complex technology and likely to be expensive. Unless Microsoft and its hardware partners subsidize the costs—which would be wise, given Microsoft's contention that today's security vulnerabilities are undermining its growth—Palladium might be a tough sell in any but the most security-conscious environments.

Think Trustworthy Computing. Palladium is, in essence, the realization of Microsoft Chairman and Chief Software Architect Bill Gates' "Trustworthy Computing" memo. Palladium systems will verify that you're you, limit what you download to and execute on your computer, and can verify where programs and other attachments came from and who sent them. Palladium can protect your data, both on your PC and after you've sent the data over the Internet. Using high-level encryption, Palladium can ensure that only the recipients you specify can open information you send. Likewise, Palladium can protect document integrity, preventing others from altering data you created.

Palladium will stop viruses, worms, and spam. The technology will prevent the startup of unauthorized applications, protecting your system from Internet-based attacks, and will stop unsolicited email before it reaches your PC, unless the email meets the credentials you establish.

Palladium will protect your privacy. In addition to local data protection, Palladium will use software agents to distribute your data only to the correct people. This agent—code-named "My Man"—can't access your data, only authenticate other users for access, which prevents intruders from hacking the agent.

Palladium will offer built-in DRM. In a nod toward the recording industry and other companies that want to securely distribute copyrighted content, Palladium will include DRM technology that will let users exercise their fair-use rights with music and other data they've legally purchased. Interestingly, although digital music was the original reason for this DRM integration, Microsoft says that applying DRM to email and other sensitive inhouse documents makes even more sense. This technology will enable users to send email that only certain individuals can read and that no one can forward or copy.