Microsoft Private Folder 1.0 withdrawn after user backlash

Less than two weeks after its launch, Microsoft has had to axe its Private Folder 1.0 amid concerns about data ownership and encryption.

When launched the free download was touted by Microsoft as 'a utility that limits access to selected files by other people that you trust and share your computer with...With this tool, you will get one password protected folder called My Private Folder in your account to save your personal files.'

Microsoft openly admitted that it would not be held responsible for lost files, nor would it offer support in password cracking or retrieval efforts, causing alarm bells to ring for many IT departments.

A discussion thread posted on MSBLOG before Private Folder 1.0 was withdrawn showed mixed reactions to its arrival.

"From an administrator point of view this is a BAD NEWS. If any tool is available for users to protect information is [Sic] should be necessarily managed by the system administrator. If not, the user information is its own property and does not belong to the company anymore. The general rule is that information stored in company servers and PCs belong to the company not to the user. So this tool need[s] to have a back door accessible for the domain administrator," said one entry posted on 15 July.

The software giant reacted to these concerns by pulling the folder. A statement issued by Microsoft said:

"Private Folder 1.0 was designed as a benefit for customers running genuine Windows. However, we received feedback about concerns around manageability, data recovery and encryption, and based on that feedback we are removing the application."

Although a Microsoft spokesperson was unable to clarify whether the application had been removed indefinitely or if there are plans to re-launch it after additional refinement.

Graham Titterington, principal analyst at Ovum , said: "I think the anxieties of IT managers regarding private folders are: Fear of individuals hiding things on corporate machines for which the company might be liable, for example copyright material or pornography; Fear of individuals deliberately putting corporate information out of reach of everyone else, and increasing use of corporate equipment for non-business use. Generally it is not a good idea for people to store data on C drives as these are not usually backed up and so the information is not secure, particularly for laptops.

"In Microsoft's strategy there are three levels of data security:

1) Full disc encryption (mainly for protecting information on laptops if they are stolen),

2) Folder level encryption, covering topics or work areas,

3) Document level encryption (part of Windows Rights Management).

Without the middle tier there is a bit of a security hole, but nothing worse than we have lived with for years."

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