In early 2001, Microsoft settled its lawsuit with Sun Microsystems. Later that year, with the release of Microsoft Windows XP, Microsoft began to distribute the Microsoft virtual machine (Microsoft VM) for Java as a downloadable component of Windows XP from http://www.microsoft.com as well as through Windows Update. For some Windows XP users, this meant that the first time that a user encountered a Java applet in Microsoft Internet Explorer, the application would automatically prompt the user to install a Java virtual machine. This install on demand (IOD) system worked well.