Microsoft hopes McAfee will allay security fears

McAfee shares shot up 60 per cent, to $12.50, as it announced it is to supply security services for Microsoft's planned online offering.

As a first step in the strategic alliance, McAfee will integrate .NET technology into its net-based security subscription service and launch a new service integrated with Microsoft's Passport to provide a secure single sign-on service. Both companies will collaborate on Hailstorm - Microsoft's new idea for global dominance, which aims to eventually control all of an individual's web use, from personal calendar to financial details and transactions through a single sign-on. Major fears surrounding the security of Microsoft's Hailstorm have so far threatened to be a limiting factor in its success. This is the company's first attempt to put these fears to rest.