WHY HACKERS ARE A GIANT THREAT TO MICROSOFT'S FUTURE.

The article discusses Microsoft's efforts to fight against viruses and worms, which have cost customers billions of dollars. In August 2003, viruses and worms aimed at flaws in Windows software flooded the Internet. The attacks marked a watershed for the software giant. Not only was Microsoft savaged in the media, but also it was hurt financially. This August, Microsoft unveiled a response to the hacker threat: a 100-megabyte revision of its Windows XP operating system. Service Pack 2, which customers can download for free, fixes thousands of weaknesses and flaws in Windows XP that hackers could otherwise attack. It represents the first meaningful improvement in the security of the software that sits on hundreds of millions of computers worldwide. Microsoft has also been scrambling to ease corporate customers' concerns. Chairman Bill Gates acknowledges that Microsoft's struggle will be long, disruptive, and expensive. Security issues have also compelled Microsoft to rethink the way it relates to customers. Microsoft is finding that security is costing more time and money than anyone realized. Another year or two should bring programs that make security more foolproof and high tech. Gates calls this kind of software dynamic system protection. Microsoft is also getting into the antivirus- software business. INSETS: WORST OUTBREAKS EVER;WHY VIRUSES LIKE MICROSOFT.