"Embrace and Extend" is Microsoft
for taking over a company and re-arranging the acquired
to the point that it is incompatible
with the company's older products or it becomes Microsoft-only technology. This is their definition
As of this writing, the current example of Microsoft's "embrace and extend" strategy is to make proprietary extensions to the Kerberos protocol that only works with Windows 2000 computers (http://slashdot.org/articles/00/03/02/0958226.shtml). After receiving complaints from the press, Microsoft "releases" the information about the extensions, provided the readers of this info have to swear secrecy to the BillGod (http://slashdot.org/article.pl?sid=00/05/02/158204). In the same Slashdot article, posters have already released the information, being that Kerberos is and should be kept an open protocol always.
Afterwards, a lawyer from Microsoft tells Slashdot and Andover to take down the "modified" Kerberos info (http://slashdot.org/article.pl?sid=00/05/11/0153247). Little did the lawyer know what lies beyond the furnance that is the Slashdot readers and editors...