Identrus has struck a deal with Microsoft that aims to make Internet transactions secure across some of the world's most popular computer operating platforms.

Financial institutions and corporate customers will use Identrus digital certificates, called Global IDs, across the Microsoft platform to conclusively identify one another, keep their communications private and create an indisputable record of their transactions.

As well as providing trusted electronic identity to multiparty commercial transactions on the Internet, Identrus also provides non-repudiation. This means a person or machine cannot successfully disavow a digitally signed communication or transaction

Landmark agreement may be a blow for competitors

Landing the deal with Microsoft is a coup for Identrus. Its system guarantees that financial institutions can identify and trust the parties to a transaction. Identrus claims to provide high levels of trust because several financial institutions back it. These institutions can claim a long history of deep customer knowledge and a long legacy of facilitating business-to-business commerce.

Technology firms have supposed they cannot easily offer guarantees as watertight as those provided by financial institutions, therefore even Microsoft has considered it prudent to opt for an agreement with an apparently more trustworthy partner. Microsoft's choice is therefore a very significant decision for Identrus and its competitors.

Shift from paper to electronic systems

The agreement is also significant for letter of credit (L/C) practitioners. One of the benefits of Identrus is that trade financiers can electronically authorise L/Cs to any bank customer with the assurance that the identities of both parties have been conclusively established and a binding record of the transaction has been created.

While Identrus has been able to provide a secure operating environment for some time, its systems have not always been compatible with those in financial institutions. This means that several banks have been unable or reluctant to switch from paper-based to electronic transactions.

Support from ANZ

One financial institution that feels the agreement between Identrus and Microsoft will make a difference in this respect is the Australia and New Zealand Banking Group Limited (ANZ). It runs a comprehensive Microsoft infrastructure and says it recognises the need for Microsoft products to support the Identrus framework.

ANZ reports it has been working closely with Microsoft and Identrus during the past six months to accelerate integration between the Identrus framework and the Microsoft platform.

"We are very supportive of this initiative, it's great for the industry," said Mike Irvine, general manager, Business eCommerce of ANZ. "Financial institutions and their customers want Identrus capabilities built in from the start, rather than having to code them from scratch. Now we can just turn Identrus system capabilities on, which is important, and perhaps essential, for unleashing trusted business-to-business Internet commerce around the globe."

Under the agreement several of Microsoft products will be Identrus enabled, including the Windows 2000 platform and .NET Enterprise Servers as well as Microsoft Outlook, the world's most popular e-mail client. As a first step, Microsoft is already co-developing the first packaged Identrus Ready architecture for Windows 2000.

Identrus claims that its presence within the world's most popular software will unleash a broad range of trusted business-to-business e-commerce activities, including secure e-mail, contract signing, online payments, e-marketplaces and international trade finance.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.