Could Microsoft Corp be the next open source company? At the WinHec Windows Hardware Engineering Conference being held this week in Los Angeles, Brian Valentine, Microsoft vice president of the Windows Operating Systems Division, suggested that the source code for the forthcoming Windows 2000 operating system, once called NT 5.0, might be made more freely available. With its eye on the growing success of the Linux operating system, Microsoft has been looking into the issue, and according to Valentine is now seriously considering looking at doing open source.

Using the open source model has led to low prices, more extensive testing and widespread support for Linux users, and companies such as Sun Microsystems Inc, Silicon Graphics Inc and even Apple Computer Corp have shifted some of their system software development efforts towards a similar model. Netscape Communications Corp was one of the first to do so, posting the source code to Communicator 5.0 on its web site a year ago.

But perhaps more immediately important for Microsoft is the probability that opening up the source code might stave off more drastic moves to break the company up, in the event that the Washington antitrust trial decision goes against it. One of the suggested remedies has been that Microsoft sells off its system code rights. The 19 States suing the company in conjunction with the Department of Justice have suggested that an auction for Windows rights should be held. The trial is set to resume next month.

Also at Winhec, Microsoft for the first time publicly admitted the difficulties it is having merging its current Windows 95/98 operating system line with Windows NT by announcing that it would be releasing a new consumer edition of Windows 98 next year. The new version will have faster bootup times and better graphics support. Windows 98 Second Edition is already due for release in the third quarter of this year.

Microsoft executives said that consumers cared more about compatibility with existing software than with the higher reliability and greater scalabilty promised by Windows 2000. An eventual merge between the two systems is planned, but Microsoft is no longer prepared to give a date for its release. At Last year’s WinHec, Microsoft chairman Bill Gates told developers that Windows 98 would be the last Microsoft operating system to use the old Windows kernel, which still includes major elements of MS-DOS.