A surprise decision by Microsoft jeopardized its relationship with PC giant Hewlett-Packard a year before Windows Vista's release, according to internal e-mails unsealed late Friday in U.S. District Court in Seattle. The messages, between top Microsoft and HP executives, shed new light on the behind-the-scenes turmoil that preceded the operating system's troubled debut.

"You have demonstrated a complete lack of commitment to HP as a strategic partner and cost us a lot of money in the process," wrote HP executive Richard Walker in a January 2006 message to then-Microsoft Windows chief Jim Allchin. "Your credibility is severely damaged in my organization."

The messages (PDF, 6 pages) were disclosed in the class-action lawsuit over Microsoft's "Windows Vista Capable" logo program. Previous e-mails showed Intel overjoyed at Microsoft's decision to lower the requirements for the "Vista Capable" designation. The decision boosted the value of an older Intel chipset by qualifying it for the logo. But the move stunned HP, which had made a big investment in new technology based on its belief that Microsoft would stick to the higher requirements.

The latest messages demonstrate, in new detail, the difficult history Microsoft is trying overcome as it works with hardware makers to prepare for Windows 7, the next version of the company's flagship operating system. Read on for the complete thread -- including Walker's frustrated reaction, Allchin's dismayed internal response, and Microsoft Chief Executive Steve Ballmer's denial of involvement.

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Hi Jim,

You and I haven't met yet but I replaced John Romano running the consumer PC business working for Todd, I look forward to meeting you in the not too distant future.

I wanted to check in with you based on a rumor I heard today that Microsoft is about to relax the WDDM (Windows Display Driver Model) requirement for Vista Capable PCs. We are hoping this is indeed just a rumor but would like your confirmation.

As you may recall from the August 2005 meeting in San Diego, when this topic was discussed John Romano asked Microsoft for a commitment to ensure that you would not bow to pressure to relax the the requirement since it would require HP to make a major commitment to support it. I am told you did in fact make that commitment and as a result we embarked on a plan to rapidly obsolete the Intel 910 and 915 based platforms, bringing up and qualifying 2 new motherboards in support of being Vista Capable. As you can imagine this was no small feat and our team has worked hard to support your plans so we're hoping the rumor we're hearing is just that, but I'd be grateful if you would confirm where things stand.

Many thanks,
Richard

Richard M. Walker

SVP Consumer PC Business Unit

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From: Walker, Richard
Sent: Wednesday, February 01, 2006 8:51 AM
To: Kevin Johnson; Jim Allchin
Subject: Microsoft Vista Compatible Announcement

Jim, Kevin,

I see from the announcement on the OEM website that the rumor I referred to in my earlier message is indeed true. You should understand that for a partner who has made a significant investment in meeting the Vista Capable requirement we find it both disappointing and troubling that you would make such a decision without first consulting HP, your biggest global partner. The statement made that it was partner feedback that drove you to this decision may be true but you certainly did not get it from my organization, nor any other part of the HP PC organization as far as I can tell. The decision you have made and communicated has taken away an investment we made consciously for competitive advantage knowing that some players would choose not to make the same level of investment as we did in supporting our program requirements. Now we have a situation where PC manufacturers (and processor/chipset suppliers) can claim Vista Capable in a "good" mode just because it will run. What kind of consumer assurance is that? Hardly one that puts any credence behind your desire to create the "best possible customer experience for the Windows Vista Upgrade".

I can't be more clear than to say you not only let us down by reneging on your commitment to stand behind the WDDM requirement, you have demonstrated a complete lack of commitment to HP as a strategic partner and cost us a lot of money in the process. Your credibility is severely damaged in my organization, I have engineers who've worked their tails off to qualify new platforms to support WDDM who are wondering why they put so much effort in when Microsoft changed the rules at the last minute and didn't even consult us before making the announcement.

If I were to be completely cynical about the course of events leading up to this, I'd suggest that my friends in Santa Clara (Intel's hometown) slept well last night knowing that they don't have to worry that part of their line up, non compliant as it would have been based on WDDM requirement for 1/4, will be exposed to public scrutiny. I'm three months into this new role and I hope this incident is not a foretaste of the relationship I will have (with) Microsoft going forward, but I can tell you it's left a very bad taste with me and my team.

Cheers...Richard

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From: Jim Allchin
Sent: Wednesday, February 01, 2006 9:01 AM
To: Steve Ballmer
Cc: Kevin Johnson
Subject: FW: Microsoft Vista Compatible Announcement

I am beyond being upset here.

This was totally mismanaged by Intel and Microsoft.

What a mess.

Now we have an upset partner, Microsoft destroyed credibility, as well as my own credibility shot.

I was away and I get back to see this mess.

I was told all this started with a call between you and Paul (Otellini, Intel's CEO). I will have to get to the bottom of this and understand how we could be so insensitive in handing the situation.

jim

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From: Steve Ballmer
Sent: Wednesday, February 01, 2006 3:32 PM
To: Jim Allchin
Cc: Kevin Johnson
Subject: RE: Microsoft Vista Compatible Announcement

I had nothing to do with this. Will (Poole, another Windows executive) handled everything. I received a message that paul was going to call. Will said he would handle it. Paul called. I had not even had a chance to report his issues when Will told me he had solved them. (It did not sound like he had) I am not even in the detail of the issues

You better get will under control  thanks.