Channel headlines for July 2, 2007: Microsoft managed storage?; iPhone activation woes; 500K iPhones hit streets; virtualization licenses still FUBARED; malware gangs at war; Sun gets more open; H1Bs stir SAP market.

Microsoft testing free data storage ‘in the cloud’ Hosted storage system is for personal files and accessing and sharing files publicly — with access controls. [eWEEK]

AT&T works to fix iPhone activation woes While blogs continue to simmer with complaints from people who waited months to buy an iPhone and now are experiencing problems activating it, AT&T Inc. said Sunday that the situation has improved. [AP]

Piper Jaffray: 500,000 iPhones sold over the weekend Blog: A quantitative estimate of Apple’s weekend iPhone sales has been released, surpassing some of the more optimistic analysts last week. [CNET]

Software licensing needs clarity for virtualization Virtualization is being used in 25% of data centers today, but few software vendors have spelled out licensing policies for running their products in virtual machines. [SearchDataCenter.com]

Rival malware gangs wage turf war DDoSing the enemy. [TheReg]

Sun turns over cluster code Solaris agents no longer secret. [TheReg]

H1B visas and the SAP market IT workers in general and SAP professionals in particular continue to debate the pros and cons of the proposed increase in H1B visas. [SearchSAP.com]

ShoreTel IPO marred by patent infringement suit ShoreTel hit a stumbling block on the road to its IPO as rival Mitel Networks slapped the VoIP vendor with a patent infringement lawsuit that appears to have delayed trading of its shares. [ChannelWeb]

Workers rarely jump ship over pay alone News Analysis: We’ll let you in on a little secret: the experts don’t believe that you really left your last job for more money. [eWEEK]

Google flirts with online OS Docs, Spreadsheets, Folders. [TheReg]