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Microsoft Deepens Indemnity: Page 4 of 4

Microsoft also continues to expand its 3-year-old Shared Source Initiative, through which it makes source code for Windows and other products available to customers, outside developers, and students, under Microsoft's terms and conditions. For instance, Microsoft recently opened the source code to its Office 2003 applications suite to government agencies that qualify for its government security program. More than a million people have participated in Microsoft's shared-source program.

Microsoft also is assessing how its technology gets absorbed into the evolving world of Web services. In the months ahead, Kaefer says, it plans to be more "prescriptive" about when its .Net Web services code is available for royalty-free use.