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  Briefing Book: Microsoft Palladium
Time: 07:08 EST/12:08 GMT | News Source: TechWeb | Posted By: Alex Harris

No IT vendor can set off a fire-storm quite like Microsoft. Its latest initiative -- the hardware-based security scheme it calls Palladium -- might be the most controversial yet. Not only does it bring with it the usual fears of Microsoft's monopoly-like powers, it has thrust the software vendor into new areas, like security, digital rights management and privacy/identity, that could give it a broader reach than ever before.

So what is Palladium? It combines hardware-based storage of an encryption key with software that will be provided by the next version of Windows. Together, those measures could provide a much higher degree of security for user data. To make it happen, Microsoft is teaming up with Intel and AMD to provide the required hardware. But critics and competitors are worried. Why should we trust Microsoft with the keys to the kingdom? The potential for abuse is staggering. Microsoft, of course, says "just trust us," but it won't find too many takers these days on that offer.

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