Security SpotlightSecurity Spotlight

Microsoft took the wraps off its Palladium security technology last week and showed off a prototype for new office PCs and tools for data-center management. The Next Generation Secure Computing Base technology, known as Palladium, is meant to bring increased security to PCs and information by a combination of a secure portion of Windows and protected areas of computer chips. But "it'll be into the next decade before the impact of Palladium is felt," says Pete Lindstrom, research director at Spire Security.

The company also showed a prototype PC, developed with Hewlett-Packard, that includes a flat-screen monitor, a video camera, and a wireless phone attached to the display, as well as speakerphone capability. HP says it will add features from the prototype to its business PC line next year. On the high end of the market, Microsoft showed a "dynamic data center" that uses Windows to automatically distribute and manage software running on HP hardware.