Microsoft and McAfee announce security alliance

McAfee has announced it is to provide security services for Microsoft's HailStorm project.

The first phase of the alliance will see McAfee work on Passport, a system that lets users store their web passwords in one place.

HailStorm is Microsoft's first step in its '.NET' plans to make all its products available online.

The aim is to allow users eventually to keep track of all their personal data - everything from diary appointments to bank details - over a secure online network accessible across the range of next-generation web devices.

The HailStorm plans, unveiled in March, have already raised some concerns about security. The alliance marks a step by Microsoft towards allaying those fears.

Shares in McAfee jumped 54% in trading on the Nasdaq after the announcement. Shares in Microsoft rose 2.2% on the same stock exchange.

Full financial details of the alliance were not disclosed.