Intentional Software Corporation, Simonyi's new company along with Gregor Kiczales, a researcher at the University of British Columbia, aims to create software that makes it easier to program new applications through the use of graphic images, charts and text.

Microsoft itself supports Simonyi, and will allow him to use patents he developed while at Microsoft, but Microsoft will get the first chance to negotiate for rights on any developments generated by Intentional Software.

"I'm very excited about the work that Charles is pursuing and very pleased that we will continue to have an ongoing relationship," Bill Gates, Microsoft's chairman, said in a statement.

After discussions with Gates, Simonyi said that it became clear the market for aspect-based programming tools was too small for Microsoft, which now sells software for more than 90 percent of the personal computers and is shifting its focus to Web-based software in services in an initiative called .NET.

Simonyi said that he hoped to have demonstrations available in six months and a revenue-generating product out within two years.