After it ships the "Whidbey" and "Orcas" versions of its popular Visual Studio tool set, Microsoft’s Visual Studio development team is headed for "Hawaii". Hawaii is the code name for a version of Microsoft’s Visual Studio tool set two versions beyond Whidbey, also known as Visual Studio 2005, according to sources familiar with Microsoft’s plans. Hawaii will be a completely redesigned tool set, aimed at taking developers well beyond current capabilities.

Microsoft has released a final version of its desktop-search software as it tries to enhance its presence in the burgeoning market staked out by rivals Yahoo and Google. Microsoft, which is laboring to catch up in Web search, has taken advantage of its software background to create an Internet application for finding documents on the hard drive. The MSN Search Toolbar with Windows Desktop Search, released Monday, is a free download that searches over email, Word documents, PDFs and Web pages, among other file types.

A networking technology that once divided Sun Microsystems and Microsoft has now become the companies’ first point of cooperation. The technology helps bridge a rift many computer users and administrators must wrestle with during the login process. Sun and Microsoft demonstrated single sign-on software that, when it’s widely available, will let a person log in once to use network services that previously required separate authentications.

An eagerly-awaited report into the use of open source software in the UK education sector was published on Friday, and contained evidence that schools could significantly cut their IT spending by moving to non-proprietary software. But Microsoft–which could lose considerable revenue if large numbers of schools embraced open source–lost little time in attacking the study, which was commissioned and published by the British Educational Communications and Technology Association (Becta). The report involved 15 schools which used open source software and 33 that didn’t. It concluded that the cost of a primary school computer running open source software was half that of one running proprietary software, while in secondary schools an open source PC was 20 percent cheaper.

Microsoft’s share of the U.S. browser market has slipped below 90 percent as the Firefox browser continues to grow in popularity, according to independent tracking by WebSideStory. Firefox, an open-source browser collectively developed by the Internet community under the Mozilla Foundation, had a 6.8 percent share as of April 29, an increase from 3.0 percent since WebSideStory began tracking Firefox separately in October.

Microsoft is developing a new version of Windows aimed at companies that want to better secure their older machines, the company confirmed Thursday. Code-named Eiger, the product is basically designed to turn older PCs into a thin client, which is a terminal that gets most of its information from a central server. Unlike traditional thin clients, though, a few programs can be run locally, including Internet Explorer, Windows Media Player and antivirus software.

Microsoft and software partner Interwoven have agreed to join forces on product integration, research and development, and sales and marketing. The partnership, announced on Thursday, is aimed at law firms and other professional-services companies that have complex document and records management requirements. Interwoven, based in Sunnyvale, Calif., specializes in systems for creating, sharing and archiving documents, e-mail and other business records. Rivals include Stellent, OpenText and EMC, which bolstered its position with the purchase last year of Documentum.

IBM is encouraging its employees to use Firefox, aiding the open-source Web browser’s quest to chip away at Microsoft’s Internet Explorer. Firefox is already used by about 10 percent of IBM’s staff, or about 30,000 people. Starting Friday, IBM workers can download the browser from internal servers and get support from the company’s help desk staff.

John Wiley & Sons announced that it has signed an agreement to acquire Sybex, a publisher of computer books and software based in Alameda, California. The terms of the purchase, which is scheduled to close by the end of the month, were not disclosed. Sybex has been a leading publisher for the global Information Technology professional community for nearly 30 years. Known for high quality publications that are translated into more than 20 languages, Sybex publishes about 100 new titles a year and has a backlist of approximately 450 titles in the graphics, digital photography, operating systems, programming, and gaming categories.

Microsoft is unveiling a new subscription-based computer fix-it service, aimed at automatically patching security holes, blocking viruses and spyware, and generally automating the chores of maintaining a computer’s health. Dubbed Windows OneCare, the service will draw in part on existing tools like the company’s anti-spyware software, as well as on basic PC management functions inside Windows. But it will add a more powerful firewall, ongoing antivirus protection, and the right to get a live support person on the phone without paying extra, the company said.