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.

Re:Microsofts point of view...

[dubiousmike]

Having worked for a few commercial software companies, one being a music software company that was one of the more pirated at the time, I found that the company's standpoint on piracy was that it was not all that bad, in most cases.

Those who will use your software in a professional capacity will usually pay for it.

Those who will not use it in a professional capacity, will learn it and possible work for an employer who either already owns it or will likely buy it for said "now former non-professional" to use it.

At the end of the day, you have an increased user base. Revenue doesn't really change as the non-professionals wouldn't have paid for it anyway.

Of course, I didn't work for Microsoft or a similar company who's products are meant for absolutely everyone (in their book) and thus every pirated copy really is considered lost revenue.

hey Ballmer

[Patrick13]

Hey Steve-O--

my friends and I pirate MS software too, give us $750,000,000 too. What's good for us is good for the net economy...

Good news/bad news

[Dark Paladin]

The Good News:

China gets an even bigger IT infrastructure.

The Bad News:

They spend most of it on hardware upgrades. Forever.

The Good News:

More technical knowledge of computers in the country.

The Bad News:

It's all directed at creating anti-Pallendrome mod chips.

The Good News:

More people in China get onto the Internet!

The Bad News:

All they can get is MSN, and only if they use Internet Explorer.

The Good News:

China gets to upgrade their military computers.

The Bad News:

The first BSOD launches WWIII.

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.

Re:dosent matter

[Lao-Tzu]

It does so matter.

A windows open relay will have more downtime. Yippee!

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...