The Empire Strikes Back - in China

jaymzter writes: "Reuters is reporting that Microsoft is dumping $750 million into China over the next three years. According to MS CEO Steve Ballmer, "What's good for the local industry in every country is good for Microsoft", especially when that other country is actually promoting and developing home grown Linux. From the article it looks like MS is willing to overlook China's legendary software 'sharing' as long as the government stays tight with Windows."

Comments

Microsofts point of view...

[Rasta Prefect]

With active promotion of Linux in China, Microsoft has to be realizing that it's better to let rampant piracy of their products continue and make some profit from those who do buy than to allow the creating of a large incubator for Linux - something that could potentially threaten their market share in countries with more enforced IP laws.

They will strike 'piracy' later..

[aralin]

Seems that Microsoft finally noticed that not everybody is equal and although Europe and US are already hooked on their drugs, China is still not and so they just need to back up a little, distribute for free a little while longer, before they will collect. And China is a potential market of the size of Europe and US together. So be sure they will collect eventually.

Re:How long can they keep it up?

[Sabalon]

Depends on how they are "spending" it. Are they giving away licenses to Windows? If so, what is the cost to them - $0.

Lets see them really donate $750mil by going to CompuUSA or something, buying $750mil copies of WinXP and shipping it over there.

Hell...I can give you $4BILLION worth of RedHat...buy one cd for $69 amount and print up a certificate saying you can copy/install it 5.7million times.

It's like the case a bit ago where they were gonna help everyone out by giving them their software which'll cost them minimal cd costs.

How China Linux Works - why microsoft will fail

[akbkhome]

This is very funny for anybody who knows how the linux china market works.

Before you start, you have to understand that there are a number of Linux Distribution companies in China, most of the started small and rode the tech bubble there, raising capital on the hope of following companies like Redhat etc.

The difference in china is that prior to getting listed, they had to be 'blessed' by the powers that be - The communist goverment. - due to rampant quasi corruption, this usually means that if the cardres that added their blessing usualy buy in personally - and stay in (due to the chinese habit of sticking with the family).

What this means is that all the major Linux companies have very prominant central party members on their board. - imagine George Bush's son on the board of Redhat. - with no accountability stuff..

Basically the top guys are so tightly into the idea they can make money from their connections using linux, that microsoft is fighting a battle that it lost a few years ago...