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He also pointed to all of the applications in the Marketplace that seek to improve connectivity with Microsoft Office.

Payne predicted that we would see Microsoft accelerate ahead of Google in terms of productivity in the cloud while Google is still trying to achieve more desktop-application-style fidelity.

1. Google will be releasing VP8 under an open source and royalty-free basis. VP8 is a high-quality video codec that Google acquired when they purchased the company On2. The VP8 codec represents a vast improvement in quality-per-bit over Theora and is comparable in quality to H.264. 2. The VP8 codec will be combined with the Vorbis audio codec and a subset of the Matroska container format to build a new standard for Open Video on the web called WebM. You can find out more about the project at its new site: http://www.webmproject.org/. 3. We will include support for WebM in Firefox. You can get super-early WebM builds of Firefox 4 pre-alpha today. WebM will also be included in Google Chrome and Opera. 4. Every video on YouTube will be transcoded into WebM. They have about 1.2 million videos available today and will be working through their back catalog over time. But they have committed to supporting everything. 5. This is something that is supported by many partners, not just Google and others. Content providers like Brightcove have signed up to support WebM as part of a full HTML5 video solution. Hardware companies, encoding providers and other parts of the video stack are all part of the list of companies backing WebM. Even Adobe will be supporting WebM in Flash. Firefox, with its market share and principled leadership and YouTube, with its video reach are the most important partners in this solution, but we are only a small part of the larger ecosystem of video.

Microsoft Corp. has agreed to change its policies and always tell email customers when it suspects there has been a government hacking attempt after widespread hacking by Chinese authorities was exposed. Microsoft experts concluded several years ago that Chinese authorities had hacked into more than a thousand Hotmail email accounts, targeting international leaders of China's Tibetan and Uighur minorities in particular — but it decided not to tell the victims, allowing the hackers to continue their campaign, according to former employees of the company. On Wednesday, after a series of requests for comment from Reuters, Microsoft said it would change its policy on notifying customers. Microsoft spokesman Frank Shaw said the company was never certain of the origin of the Hotmail attacks.

The company also confirmed for the first time that it had not called, emailed or otherwise told the Hotmail users that their electronic correspondence had been collected. The company declined to say what role the exposure of the Hotmail campaign played in its decision to make the policy shift. The first public signal of the attacks came in May 2011, though no direct link was immediately made with the Chinese authorities.

That's when security firm Trend Micro Inc announced it had found an email sent to someone in Taiwan that contained a miniature computer program. The program took advantage of a previously undetected flaw in Microsoft's own web pages to direct Hotmail and other free Microsoft email services to secretly forward copies of all of a recipient's incoming mail to an account controlled by the attacker. Trend Micro found more than a thousand victims, and Microsoft patched the vulnerability before the security company announced its findings publicly

The digital privacy world was rocked late Thursday evening when The New York Times reported on Securus, a prison telecom company that has a service enabling law enforcement officers to locate most American cell phones within seconds. The company does this via a basic Web interface leveraging a location API—creating a way to effectively access a massive real-time database of cell-site records. Securus’ location ability relies on other data brokers and location aggregators that obtain that information directly from mobile providers, usually for the purposes of providing some commercial service like an opt-in product discount triggered by being near a certain location. ("You’re near a Carl’s Jr.! Stop in now for a free order of fries with purchase!") The Texas-based Securus reportedly gets its data from 3CInteractive, which in turn buys data from LocationSmart. Ars reached 3CInteractive's general counsel, Scott Elk, who referred us to a spokesperson. The spokesperson did not immediately respond to our query. But currently, anyone can get a sense of the power of a location API by trying out a demo from LocationSmart itself. Currently, the Supreme Court is set to rule on the case of Carpenter v. United States, which asks whether police can obtain more than 120 days' worth of cell-site location information of a criminal suspect without a warrant. In that case, as is common in many investigations, law enforcement presented a cell provider with a court order to obtain such historical data. But the ability to obtain real-time location data that Securus reportedly offers skips that entire process, and it's potentially far more invasive. Securus’ location service as used by law enforcement is also currently being scrutinized. The service is at the heart of an ongoing federal prosecution of a former Missouri sheriff’s deputy who allegedly used it at least 11 times against a judge and other law enforcement officers. On Friday, Sen. Ron Wyden (D-Ore.) publicly released his formal letters to AT&T and also to the Federal Communications Commission demanding detailed answers regarding these Securus revelations.