Hewlett Packard (HP) has filed a lawsuit against Microsoft and is considering abandoning Windows all together. HP would develop their own software for their PCs. I'm sure Steve Jobs just loves seeing Microsoft in the begger's position. http://www.forbes.com/2008/11/21/vista-hp-msft-tech-enter-cx_bc_1121vista.html?partner=yahootix Try the above link first. Only if the link does not work for some reason, then I posted the text of the article below. -------------------------------------------------------------------------------------------- FORBES - Microsoft: Don't Mess With HP Brian Caulfield, 11.21.08, 06:00 PM EST Angry e-mails from HP to Microsoft could explain HP's skunk works project to build its own consumer interface. Watch your back, Monkey Boy. You may have messed with the wrong bunch of PC builders. A court filing unsealed Thursday as part of a class-action lawsuit against Microsoft (nasdaq: MSFT - news - people ) revealed that Hewlett-Packard (nyse: HPQ - news - people ) Chief Executive Mark Hurd e-mailed Microsoft Chief Executive Steve Ballmer to complain about HP's "call lines being overrun," with customers struggling to upgrade to Vista. "I'm sure you're aware of this," Hurd added. The full text of the e-mail has not yet been released, but Hurd's complaints to Ballmer are the latest signs of escalating tensions between HP and Microsoft caused by the launch of Windows Vista in 2007. The lawsuit accuses Microsoft of slapping labels on PCs that said the machines were Vista-capable when they didn't have the processing power needed to run some of the operating system's most touted features. E-mails released Nov. 14 as part of the case show Richard Walker, the head of HP's PC business, hinting at the customer trouble to come in a Feb, 1, 2006, e-mail to Ballmer and other members of Microsoft's management team. "I hope this incident isn't a foretaste of the relationship I will have with Microsoft going forward, but I can tell you that it's left a very bad taste," Walker wrote. "The decision you have made has taken away an investment we made consciously for competitive advantage knowing that some players would choose not to." That e-mail triggered panic at Microsoft. Jim Allchin, then co-president of Microsoft's platforms and services division, quickly sent a follow-up note to Ballmer. "I am beyond being upset here," he wrote. Ballmer pointed the finger at Will Poole, then corporate vice president for client business, which is responsible for the Windows operating system. "I had nothing to do with this," Ballmer wrote. "Will [Poole] handled everything. ... You better get Will under control." Poole scrambled to repair the damage. "Jim [Allchin] is rightly upset that hp went non-linear after having intel break explicit agreement with me and tell them of the new plan b4 we could explain and mitigate," Poole wrote in a note to Ballmer and other Microsoft executives on Feb. 3, 2006. "I have that under control with hp, for now, but was very painful. Some vp at intel is to blame, we don't know who yet." Ballmer's e-mail response: "Great by me but Jim [Alchin] is apoplectic. I know nothing of the details, please advise." Allchin retired from Microsoft in January 2007. Poole later moved to Microsoft's Unlimited Potential group, dedicated to closing the "digital divide," before leaving Microsoft earlier this year. And while practically everyone associated with Vista at Microsoft is now gone, Walker remains at HP. And in in a twist worthy of The Sopranos, Walker has assembled a group dedicated to putting its own stamp on the Vista operating system. HP's Customer Experience group, led by Susie Wee, has quietly put it ahead of Apple (nasdaq: AAPL - news - people ), by some measures, at incorporating new elements such as touch sensitivity into computer interfaces (see "Fixing Vista"). The $1,149 HP TouchSmart tx2 Notebook PC, launched this week, is the latest result of that effort. It puts the touch-screen interface HP developed for its TouchSmart line of PCs onto a notebook computer. Many had expected that Apple would release a notebook with a touch-sensitive screen first. Instead, Apple incorporated the multitouch gestures used on the iPhone into its notebooks' track pads. The moves hint that HP could bring some of its research muscle to bear on PC software. The company has plenty of operating-system expertise, selling machines running Linux, Windows and a number of its own operating systems, including HP-UX, OpenVMS and NonStop. If HP wanted to, it could easily slap its whizzy touch-sensitive interface onto Linux or even a proprietary operating system. And with its lion's share of the worldwide PC market, such an offering would be an instant threat to Microsoft. It would also protect HP from having to compete with anyone who managed to cram Vista onto his machine, a thought that we know has occurred to more than a few of the big brains in HP's engineering department. "It's not very often you get pulled out of a meeting by a group of engineers who feel that they have had the rug pulled out from underneath them so that any competitive advantage we may have had in the marketplace is taken away, enabling any Tom, Dick or Harry with a PC containing a non-compliant processor/chip set to play at the same table," one e-mail from an HP employee read. So will HP try to take out Windows? HP's Walker has the means, and the Vista debacle gives him a motive. Ballmer better make damn sure that when Microsoft launches Windows 7 he doesn't give him the opportunity.