Feeds

Microsoft moves to protect business from bank crunch

Windows whatever the weather

Combat fraud and increase customer satisfaction

Microsoft is taking steps to make sure it's not left out of pocket as banking customers seek bankruptcy protection against their suppliers.

The company's filed a motion with a US bankruptcy court to ensure it's kept abreast of latest developments in the $8.2bn Washington Mutual bankruptcy case.

Microsoft filed the notice because it has: "Existing contracts for software licenses and consulting services with Washington Mutual and we want to make sure those contracts are properly administered through the bankruptcy process," a company spokesman told The Seattle PI's Joseph Tartakoff in the wake of the filing.

Microsoft's business with big institutions uses annuity-based licensing, where payments on products like Windows or Office - are spread out to make billing easier for the customer and to ensure Microsoft has guaranteed income over a number or years. US Chapter 11, though, shields companies against paying creditors such as Microsoft while they devise a plan for reorganization.

Given Microsoft counts most investment and retail banks among its customers, it's reasonable to assume Lehman Brothers is also a major Microsoft customer. Also, there will be other institutions running Windows who - while not filing for protection - have been succumbing to acquisition or are looking weak.

That's going to create uncertainty over when and how Microsoft gets paid for existing contracts. And if Microsoft is concerned about Washington Mutual, then it'll be worried sick by Lehman's, America's biggest ever bankruptcy filing - bigger than WorldCom, bigger than Enron.

Asked by The Reg if it was a filing similar motion on Lehman, a Microsoft's spokesman said the company "routinely participates, by filing notices of appearance and other pleadings, in all bankruptcies in which Microsoft is either a creditor or has contracts with the bankrupt entity."

He refused to say which cases Microsoft is filing in. ®

3 Big data security analytics techniques

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.