No Go-Ahead Stamp for Microsoft's Passport

Microsoft is recasting ambitions for its .Net Passport identification system, saying the service now will be limited to its own online offerings and those of close partners. Microsoft no longer sees Passport as a single sign-on system for the Web at large, a spokesperson said.

Microsoft's repositioning of .Net Passport comes as the Web site Monster.com said it was dropping support of the authentication service. Monster, a career-development site, was one of Microsoft's banner Passport users.

Once a key part of its hosted services strategy, Microsoft has been quiet about Passport in the past few years and has not done any significant development work on the system. Instead, the company has been quietly scaling back several of Passport's components. A directory of sites that support the service was removed this year, and in March 2003, a payments feature was axed.

Passport is clearly not all Microsoft made it out to be. In 1999, the Redmond, Washington-based company envisioned thousands of online stores and other services using Passport, allowing users to sign on using the same username and password combination used for Microsoft services. But the reality turned out different, as Web site operators balked at the idea of having Microsoft control access to their sites. Aside from Microsoft-owned sites, only a few dozen others signed on to Passport.

A Learning Process

Microsoft has "learned a lot" over the past few years from working with partners and customers using Passport and has adjusted its ambitions for Passport accordingly, said Brooke Richardson, lead product manager for MSN at Microsoft.

"Going forward, the mission of the Microsoft Passport service will be to provide authentication services to Microsoft services and products and to Microsoft partners," she said late Tuesday in an e-mail response to a reporter's questions.

Cutting Passport ambitions is part of Microsoft returning to its software roots, said Matt Rosoff, an analyst with Directions on Microsoft, a Kirkland, Washington analysis firm that tracks Microsoft. "Microsoft's interest in hosted services has decreased since 2001. The company's focus has returned to software, which is where it belongs," he said.

In 2001 Microsoft announced that eBay and TMP Worldwide's Monster.com would adopt Passport, two of only a handful of big-name companies Microsoft was able to sell on Passport. Monster.com is cutting Passport this week, while eBay continues to support the technology although it is hardly used, spokesmen for both companies said.

"Based on the adoption rates of Passport, which represented a low percentage of Monster users worldwide, a decision was made to make the most effective use of resources within Monster" and end support for Passport, said Monster spokesman Kevin Mullins.

Passport's Background

Microsoft acquired the Passport technology in 1998 when it bought Firefly Technologies. It initially used Passport as an authentication service for Hotmail and other Microsoft services, but in 1999 pitched Passport as the solution to all online shopping woes. Adopting Passport for user authentication would save companies time and money and give them an instant audience of over 200 million Passport users, Microsoft said.

The market largely rejected Passport as the system's security was tested by hackers and scrutinized by privacy watchers who did not like the idea of Microsoft controlling user information. Regulators in the United States and Europe eventually put restrictions on Microsoft and Passport. Also, Internet users, it turned out, don't decide where they shop because of the log-in service an online store supports.

Additionally, Passport faced competition from the Liberty Alliance, which was formed in late 2001 and set out to create an open authentication platform as opposed to Microsoft's proprietary Passport technology. The Liberty Alliance, originally sponsored by Sun Microsystems and about 30 other companies, has continued to expand, and specifications developed by the group are supported in several products.

With the failure of Passport and the interoperability pact struck in April of this year with former archrival Sun, Microsoft may elect to join the Liberty Alliance or support the group's specification. Microsoft and Sun have said that identity management is one of the first areas in which they hope to achieve interoperability.

(Robert McMillan in San Francisco contributed to this story.)

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