Linspire Insider writes: Just two and a half weeks after the Deal with Microsoft, Linspire President and CEO Kevin Carmony was asked to clear out his locker on July 31st. And yesterday, August 2nd, several additional people were laid off or fired, or just quit, including most of the OS team and their only localization expert. In total, seven employees were lost, bringing the company roster down to around fifteen people. All this, despite the large influx of cash from their recent partnership, shows that Microsoft deal was useless to more than just users.
The near disbanding of the OS team is indicative of a major shift in the company's business model, now focusing almost entirely on their Click-N'-Run service.
XdevXnull writes: "Microsoft has put up a page on their website outlining some details of their major new partnership agreement with Linspire. On the surface, it appears to be very much similar to the Novell agreement, but includes some interesting developments for the future of Linspire's eponymous distribution: Ms-compatible voice messaging for Pidgin (formerly gaim), Windows Media 10 (DRM anyone?), True Type font support, enhanced OOo/MS Office interoperability, and Microsoft's Live Search will be the default web search engine. The first three will be available in the commercial version of Linspire 5 with purchase of a "patent SKU".
This latest news will likely raise a lot of controversy, but my guess is that to anyone who would really be upset about these things, the Linspire distribution is largely irrelevant in any case."